Most companies today outsource their logistics operations to a third-party service provider. Be it the in-bound logistics required by a retailer or the outbound logistics that a manufacturer manages, it has become commonplace to contract with a third-party logistics (3PL) service provider to manage the logistics while companies focus on their core competencies.
In order to select a 3PL, most organizations would try to assess the 3PL provider on the following criteria:
In order to select a 3PL, most organizations would try to assess the 3PL provider on the following criteria:
- What are the 3PL services provided by the provider? Are my needs met with these services?
- What will be the cost of engaging a 3PL? What will be my initial cost to engage them and what will be my ongoing costs? When will I reach my ROI?
- Can the 3PL provider service all geographical locations where I exist? Do they have a good vendor base that will help in loweing costs, improving agility and efficiency in the entire supply chain?