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Tips For Finding the Best Logistics Provider

Choosing the right logistics provider can be challenging, there are so many factors involved you want to make sure you choose the right provider !  Before you start, make sure you understand your own needs before you start the search for a new logistics provider.Screen Shot 2017-07-28 at 11.38.19 AM.png

Don't use an RFP:
 An RFP limits you to functional costs. A good 3PL relationship should result in a quantifiable value significantly more dramatic than any RFP can identify. It is imperative that you choose the 3PL that offers the clearest quantitative value to your company.

Create an enforceable, mutual non-disclosure agreement: Do this before starting formal meetings with your third-party logistics provider candidates; ask your legal department to help. Execute this agreement before you initiate the development of a value proposition.

Payment history & financial stability: Having your 3PL suddenly fall apart could be one of the most devastating challenges your company faces. Finding a partner that has proven their financial stability will at least keep your operations from being brought to a screeching halt as you attempt to recover from someone else’s mismanagement.

Ask for references:  While evaluating your top logistics candidates, ask for a list of partners and enquire about their history with the provider. Have they consistently made payments? Has their ever been disagreement or lack of follow through from the company?

How a logistics provider handles their partners will be a good indication of how they will handle your business and talking to their partners might give you a clearer picture than talking to their hand-picked list of references.

As a service oriented business, the reputation of a logistics provider will speak volumes as to the efficiency and reliability that you can expect.

Furthermore, references should be able to speak to the character and culture of the provider. Whether good or service oriented, companies should be delivering a higher value proposition than simple efficiency.

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Topics: 3PL