Sharing What We Know

Levelling up to a new 3PL provider

Our latest eBook guides you through the different types of 3PLs, choosing the right one that suits your business needs, when to make the change and how to make the switch as seamless as possible.

Created: Dec 20, 2021

Who is that elusive partner that is going to tick all the boxes, support you and help your business thrive? Only you know the answer to that!

When creating a 3PL wish list you'll need to include 1. your current fulfilment and shipping needs and 2. your future needs as you see them. It might be useful to have a look at your business plan for the next 1, 3 and 5 years and think about what shipping and fulfilment capabilities will be needed to fulfil those aims and use that to construct your wish list.

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The first step to creating your wish list is to ask yourself key questions about your business as it is and what sorts of logistical needs you might have. Below is a list of prompt questions to ask yourself. Your answers will help you created a structured list of needs and desires:

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How quickly do my customers want their orders?

It is important to consider what your minimum and maximum delivery times are from the moment of order for all the regions you operate in as well as if you want to offer specific types of delivery such as Express or Standard.

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Where are the most popular locations my products are being purchased in?
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What global warehousing options do I currently have access to and which markets would I like to grow into?
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Does my current provider have regions I could grow into?
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Do I want to link my manufacturing flows with my fulfilment?
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What technologies do I need my 3PL to integrate with?

Anything from Shopify to inventory management integrations

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What visibility do I need over my supply chain?

You might ask yourself if there is any analytics data that you would like to have access to help you keep track of costs or supply chain performance.

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Are my products customizable and how can a 3PL help facilitate that?
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Do I need my 3PL to handle returns?
  • Does my product need to be repackaged, cleaned, or disposed of?

  • Can the 3PL generate returns labels that my customers can access and easily post their order?

  • Can the 3PL effectively receive returns back into inventory?

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Do I require any specialist customs or clearance assistance?
  • What are the customs rules for my target regions?
  • Can I make use of customs bonded warehousing?
  • Will I have to pay import duties/taxes?
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Your products might have needs that would require extra care when considering how they are stored, transported or handled by customs. Some questions you might want to ask yourself include:
  • Do my products need to be temperature-controlled across long distances?
  • Do my products have a shelf life?
  • What sort of packaging do my products need?
  • Do I utilize bundles, have mostly multi-product orders or need specialist/sustainable packaging?
  • Do my products need to be FDA approved for sale in the US?
  • Are my products valuable and fragile?
  • Do my products need to be stored and transported in a special way?
  • Are my products insured, or do I want my 3PL to handle insurance?
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Do I want my 3PL to be aligned with my values?

Are you an ethical/sustainable retailer in search for a 3PL with ethical and more sustainable practices? Perhaps you want your provider to use electric vehicles or to carbon offset their emissions.

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How would you rate communication with your current 3PL?
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Who on your team will be the point person to manage communicating with your 3PL?
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How have they managed it so far?
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What is your ideal engagement scenario with a 3PL?
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The answers to these questions will serve as your guideline when you begin looking for a new 3PL or start renegotiating with your existing one. Once you've established your logistics framework for success, it's time to start looking for and interviewing potential 3PL candidates.

Some additional questions to ask a potential 3PL might be:
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What are your contractual SLAs (Service Level Agreements) for inbounding, inventory, returns, etc., and what is the protocol if they are not met?
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Do you have a contingency plan for staffing?
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What's the process for escalating issues?
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How is your technology stack integrated?
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