What Factors Should Be Considered When Choosing a Third-Party Logistics Supplier?
Understand third-party logistics suppliers
As companies experience growth, they often encounter challenges in meeting their supply chain demands. On the other hand, larger companies need more time to focus on their core competencies. Whether it's assembly requirements, inventory management and storage, contract packing, or transportation, most companies can benefit from getting some extra help. This is where third-party logistics suppliers come into play. Third-party logistics suppliers offer customized solutions that meet your specific needs for assembly, packaging, warehousing, and on-site integration. Excellent third-party logistics suppliers have comprehensive logistics knowledge and a range of resources to help identify and fill any obvious gaps that a company may have.
Factors to consider when choosing third-party logistics suppliers
Service and attention are at the heart of the relationship when figuring out how to choose a third-party logistics supplier. An investment in customer service by a 3rd-party logistics supplier understands that excellent service and quality management apply not only to manufacturers, but also to your brand.
An effective third-party logistics supplier can quickly identify issues and resolve them effortlessly. An experienced third-party logistics supplier will provide business solutions that help you calculate savings, track products, and easily determine delivery times. In short, they help make the logistics aspect of your business easier, relieve your stress, and provide you with time to focus on what's most important to you - growing your business.
When it comes to customization, third-party logistics suppliers may mean different things. If you're involved in e-commerce, business-to-business, or retail distribution, you need a fulfillment partner that can offer a customized solution that seamlessly integrates with your supply chain. For packaging and shipping, you need a fulfillment company that can personalize the customer experience, down to the packing slip. The right third-party logistics can serve as an intangible extension of your brand, providing the same personalized service and attention to detail that your customers depend on.
One of the most important factors to consider when choosing third-party logistics suppliers is accuracy. Inventory, transportation, and order accuracy all depend on the internal processes that your third-party logistics implements over time. If your third-party logistics don't have accurate inventory, shipping or order management, customers will be disappointed, and you'll incur losses on returns. When selecting third-party logistics partners, ask about their warehouse management systems and accuracy rates.