Many third party logistics companies exist so that you are able to have a choice when you find a service that isn’t quite your liking. A 3PL service may end up not being what you expected, and you will have to find a new one- and knowing what to look for comes easy when you know what you don’t like about your current option.

The biggest reason businesses are shifting third party logistics services is because of poor customer support. A 3PL company should know how to expand to accommodate all of their customer’s requests, and often such services don’t do so before having to shun certain clients who may need help that is going to other businesses. Poor business plans and new 3PL companies are typically the most likely to do this.

Cost is another component of determining which 3PL service to put your funds and business into. You will find that the majority of 3PL services will match their competitor’s prices fairly well- and try to perform better in some shape or form to get your business. Do be wary of rising costs, which can eventually make your 3PL service less cost effective than another.

Unrealistic expectations by either party can also sour an otherwise golden business deal. If a 3PL company is expected to handle everything down to the finest detail in subject matters that don’t apply to what was stated in a contract, don’t expect the service to remain friendly when it comes time to renew a contractual agreement.

Do be on the look out for any hidden fees that a contract might hide. A logistics company might try to put in fees that you aren’t aware of to help raise their profits after advertising a low rate in a quote provided to you. Have your lawyer look over the contract for anything that doesn’t seem normal or hasn’t been discussed. Also directly ask the 3PL company if there are any fees to be discussed that haven’t already been spoken of previously.

Third party logistics services don’t work too well if there isn’t heavy reporting and statistics to review. Services that try to get by with little to no paperwork will soon find that they are without a client. Businesses want a service that can show, on paper, that they are improving the cost to benefit ratio of the business with their presence. Without such proof, there is no need to keep the 3PL company around.

Closing Comments

Quarrels business owners may have with a 3PL company are best debated and settled in a proper meeting. If you do have differences with a 3PL company, you can always look forward to signing on with another 3PL service once your contract term is up.

Learn more about 24 Hour Distribution Services and Midwest Outsourced Warehousing.