Have you decided to outsource some or all of the logistical aspects of your eCommerce but don’t know how to choose your ideal 3PL partner? You are in the right place. In this article you will find all the elements that will help you choose the perfect logistics partner to optimise the management of your shipments.
After clarifying what is meant by 3PL, Contract Logistics and Outsourcing Logistics, here are the criteria to follow to choose the most suitable partner for your needs.
How to choose the ideal 3PL partner
Before providing you with a series of elements to help you identify your logistics partner(s), it is good to remember that there is no absolute best one. The choice, in fact, depends above all on what you, your eCommerce and your customers need.
That is why your decision-making process should start right here: with the identification of your needs.
1. Identify your needs and the activities you want to outsource
As we have already explained in our previous in-depth article on 3PL logistics, you can choose to outsource only some, or all, of your logistics activities.
You can therefore choose to outsource only storage and warehouse management, but continue to manage the shipping aspects yourself. Or, you can choose to outsource just the shipments. Or again, you can outsource both.
Finally, it is important to note that you could outsource only the management of some products and not others. For example, a product that has a very high management cost, but sells very little and therefore generates little turnover, is a product whose management can (and should) be outsourced.
On what does this decision depend? Firstly, the element to be taken into consideration is how much time you want and can devote directly to these activities. Secondly, your choice should be based on an internal product analysis. Here, for example, are some aspects you can take into account in making your decision:
- the value of the goods sold;
- the obsolescence of your products;
- the importance of a single product for the business.
2. Identify the value-added services you want to offer
In addition, you should also take into account any value-added services you wish to offer.
Let’s take a practical example. If you decide to put a gadget or flyer inside all your orders before they are shipped to the final recipients to create a special unboxing experience for your customers, outsourcing the packing and shipping process could be a good idea to save your time (and as you can imagine, it takes a lot of time) and at the same time make sure that this is done carefully.
Or, if you would like your partner to also handle any returns of your orders correctly, it is important to know this in advance and to rely on a logistics partner that provides this service.
3. Define your network
To choose your ideal logistics partner, you must also be clear about where your orders are to be shipped, i.e. whether you want to rely on a domestic or an international network.
This is crucial because some partners may be ‘stronger’ domestically, others internationally.
For example, if you receive a lot of orders from abroad, it might be useful to choose a logistics partner who can also help you with customs management or who offers a bonded warehouse service: a facility in which you can store your goods for a certain period of time while benefiting from an economic suspensive regime.
When defining your network, try to be as precise as possible so that you can only select partners that can meet your needs 100 per cent. Always ask yourself these questions
- which and how many delivery points will you need to serve?
- Are there locations for which special attention is required?
- What kind of orders will your partner have to handle?
Remember, having a clear understanding of your needs is just as important for you as it is for your partner, because only then will it be possible to fulfil them.
4. Evaluate partners’ offers
Once you are clear about your needs and have defined your network, you can already make an initial screening of the logistics partners you can rely on. For example, if you know that you have to ship your orders abroad, you can already discard all those partners that offer an exclusively national service.
The offer, however, is very wide. So what are the different criteria that allow you to make an effective assessment between the different proposals? Here they are:
- Cost of service;
- Level of service offered;
- Reputation of the partner.
The optimal solution, needless to say, is to find a partner who offers a good balance between these elements: a good level of service at a low cost and who is reliable, efficient and professional.
5. Avoid the risk of lock-in
Lock-in means the risk of being too dependent on one partner and, should any problem occur, this would risk bringing your eCommerce to a complete standstill.
Imagine for instance that you have entrusted the handling of all your shipments to one partner. If this were to have a problem, it would mean that your eCommerce would not be able to process any orders for a certain period of time.
For this reason, it would be a good idea not to rely on just one logistics partner, especially when it comes to shipment management, but to diversify your partners. If you need some further advice on which courier company to choose, read our dedicated in-depth review.
Keep in mind, however, that this assessment, once again, depends exclusively on your objectives and requirements, which you will have already defined in the previous steps.
Remember: if you are clear about your goals, whichever partner – or partners – you choose will be the ideal choice.
