There are several things to think about when picking a 3PL warehouse provider. Think about where it is, how much it costs, how much room you have, how reliable it has been in the past, and what other businesses it serves before making a final selection for your online store. Due to the importance of the 3PL warehouse in determining the timeliness and quality of product delivery, doing so thoroughly is a must.
It might be challenging to choose the best 3PL warehouse or fulfilment partner due to the abundance of options in the market. When assessing a potential third-party logistics provider, steer clear of the blunders listed below.
Picking the Option With the Fewest Up-Front Expenses
It’s natural to prioritise cost savings while evaluating potential fulfilment outsourcing partners. Nonetheless, you shouldn’t let this be the only reason for your choice. 3PL warehouse providers with very low rates may be weak in other areas that are more important to you. Choosing the service that offers the cheapest quote may not save you money in the long run.
Companies may sometimes provide cheaper pricing because they aren’t using the most up-to-date technology, they have fewer people working on customer care, or they have laxer standards for quality control. In order to successfully operate an e-commerce order fulfilment business, it is crucial to invest in the aforementioned areas. Customers are less likely to buy from you again if they have a negative experience with your order fulfilment system. When these factors are taken into account, spending a bit of extra money upfront may pay off.
Not Establishing Goals
So that all parties are on the same page, it’s necessary to establish clear goals at the outset of an evaluation of a potential order fulfilment partner. While a flawless ordering experience is ideally desired, it is quite improbable. Be careful to ask tough questions regarding corrective steps, how the 3PL warehouse will handle faults or difficulties, and what your role has to be to guarantee all orders are done flawlessly before you sign a contract.
Order volume, scalability for seasonal demand, and the degree of automation deployed in the distribution centre are all factors to think about when establishing these standards and expectations. You should also inquire as to whether or not the 3PL warehouse has a minimum order fulfilment accuracy criterion that would result in penalties (such as paying the expenses of returns) if it was not met in the past.
Selecting a Third-Party Logistics Provider Near You
While it may be convenient to work with a 3PL warehouse that is near your office, you need also to think about how far away they are from your customers. The location of your 3PL’s distribution centre in relation to the final customer’s location is important since it may save shipping costs.
Of course, it’s also convenient to have the option of dropping by your 3PL warehouse location anytime you want to check on your stock and operations. It may not be more important than decreasing shipment times and prices depending on the sort of product you have (if it requires assembly or software upgrades often). Customers will typically shop elsewhere if the delivery costs and times are better elsewhere.
Negligence to Supply Necessary Information
Building development and adding new sales channels requires open lines of communication between you and your 3PL warehouse. While it may be necessary to keep sensitive information under wraps in order to maintain a competitive edge, doing so at the expense of your fulfilment company might lead to misunderstandings and mistakes down the road.
It’s crucial to choose a 3PL warehouse that you have complete faith in. If you are reluctant to provide critical information with your 3PL, there will be a mismatch between your business’s demands and the services provided, which might increase fulfilment difficulties.