So, you've optimised your supply chain and started working with a Third Party Logistics (3PL) provider. Using a unified method to handle inventory and shipping, and harnessing their centralized systems and networks you've been able to accelerate and grow your business.
When done right, the retailer to 3PL relationship empowers you with comprehensive resources, responsive support and access to new markets seamlessly.
However, not all 3PLs are made equal and you might be feeling that the one you’re working with just isn’t meeting your expectations or perhaps you've simply outgrown their capabilities.
Levelling up to a new 3PL provider guides you through the different types of 3PLs, choosing the right one that suits your business needs, when to make the change, how to make the switch as seamless as possible and how to communicate it to your customers.
Much like a romantic relationship, it's important to take stock of your 3PL relationship and ask yourself questions about their dedication to your business. Do they appreciate and support you, are they committed to your future and are they invested in your growth? If you're not happy with the relationship you're in, it's important to know your worth, know when it's no longer working for you and when to let go. There is a perfect match out there and using this guide, we hope we can help you find it.
It's important to understand the different types of 3PLs in order to figure out who you are currently being served by and which type would better fit your needs and preferences.
The 3 main 3PL types:
Standard 3PL Providers are a low-cost option for e-retailers and offer basic warehouse logistics such as storage and transportation of products.
3PL Service Developers provide standard storage and shipping with IT infrastructure and management for packaging, security, tracking, and returns.
3PL Customer Adapters are an end-to-end solution, handling nearly all logistics activities for retailers including rate maintenance, customs and negotiation with carriers. Clients have access to an online dashboard that shows their inventory and shipping processes.
