Many businesses reach a point where outsourcing to a third-party logistics (3PL) provider makes good business sense. Managing in-house fulfillment can be time-consuming, error-prone and costly. A strategic 3PL expert can alleviate these challenges, enabling businesses to scale efficiently during peak seasons and growth periods.
By working with the right 3PL provider, companies can improve customer satisfaction, streamline operations and refocus on their core business activities. However, outsourcing logistics requires careful consideration of unique business needs, thorough research and in-depth interviews with potential 3PL providers.
If you’re wondering how to choose a 3PL provider, this guide will walk you through each step and provide helpful insights on what to expect during the process.
Deciding on your 3PL search criteria
Before signing a contract with a 3PL, it's critical to assess your business needs both short-term and long-term. Clearly defining your goals will help you select a provider that aligns with your operational and strategic priorities.
Here are some key questions to ask before you start your search:
Key questions to ask before you start your search for a 3PL |
| What fulfillment challenges are you currently facing, and how will a 3PL help solve them? |
| What specific services do you need? (e.g., inventory management, warehouse optimization, order fulfillment or returns processing) |
| Where are your customers located, and does your 3PL have fulfillment centers in strategic locations? |
| Do you require fast shipping, extensive customization options or advanced software integrations? |
| What level of scalability and flexibility does your business need to handle seasonal spikes and growth? |
| Do you require fast shipping, extensive customization options or advanced software integrations? |
Understanding your goals upfront will ensure you find a provider that can not only meet your current needs but also support your future growth.
Identifying your best options
Once you know what you need in a 3PL provider, the next step is to research and shortlist potential providers that align with your business requirements. There are a few helpful ways to approach this process. First, seek recommendations from other businesses in your industry that have established relationships with 3PLs. Ask for honest feedback about their experiences with their provider. You can also research 3PLs online, on provider websites and from customer reviews.
Once you have a list of potential 3PL providers, shortlist the ones that meet your requirements. They should align with your budget, provide upfront, transparent, flexible pricing and be able to support your expected order volumes. Further, check out if your 3PL has fulfillment centers close to your clients, which will help reduce shipping costs and transit times.
Interviewing your 3PL options and what questions to ask
Selecting the right 3PL is risky, so you should be prepared to interview your prospective provider and ask questions that will help you make a more informed decision. Below, we've put together a list of some of the top questions you should ask your fulfillment provider.
Technology and integration |
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Fulfillment and shipping performance |
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Scalability and growth support |
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Customer service and support |
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Making your selection
After more closely evaluating your list of potential providers, compare their offerings and decide which 3PL provider will likely meet core requirements. You'll need to understand your service contract. Keep an eye out for hidden fees, additional storage costs, peak season surcharges, packaging and handling. What service guarantees are offered? Does it specify severance conditions for both parties? If so, what are they?
Once you identify the best 3PL for your business or brand, it’s time to start onboarding and transition your fulfillment operations to your new provider.
Working with Cart.com
Working with a 3PL is one of the most important business decisions for a business or brand. At Cart.com, we offer tech-enabled, scalable fulfillment solutions that empower brands to grow without limitations and gain operational flexibility. We're more than a standard service provider; we're ready to support your long-term business growth.
A few benefits of working with Cart.com |
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Nationwide fulfillment network |
17 fulfillment centers covering 10+ million square feet of warehouse space. |
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Omnichannel integration |
We support D2C, B2B, marketplaces and retail fulfillment. |
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Fast and cost-effective shipping |
2-day nationwide shipping with optimized carrier rates. |
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End-to-end support |
Custom packaging, returns management and automated order routing. |
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Advanced technology |
AI-powered inventory tracking, demand forecasting and real-time order management. |
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Streamlined onboarding |
Fast onboarding, performance and progress tracking and a dedicated onboarding support team. |
Cart.com has the expertise, advanced technology, fulfillment networks and carrier partnerships to support your business’ growth and success. We process, manage and ship millions of orders annually to consumers and businesses nationwide.
If you have questions about how to choose a 3PL provider or how Cart.com can meet your business needs contact us today!
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