3pl, Warehouse, Fulfillment, ecommerce

Do’s and Don’ts before signing up with a 3PL warehouse

Well, your business seems to be growing and you suddenly realize the need to improve your logistics and set up new warehouses to suit the growing demand of your business. But wait, do you really want to set it up all by yourself??? Most Probably, NO! Unless you want to get into hefty investments and hassles of getting a warehouse operational. And trust us, it is a herculean task! So, let’s look at an easy and economically viable solution- Yes, partnering with a 3rd Party Logistics Company and using their warehouse.

A Third Party Logistics provider (3PL) is a company that assists your organization at various points in the supply chain by proving their expert solutions and implementing best practices suited to your need. A good 3PL partner can be your one stop solution to all fulfilment needs. Warehousing is one of the key offerings of a 3PL solution provider and thus must be chosen wisely as it can have huge impact on your revenues and overall business. However, it is not an easy job to find the right Warehousing Partner. Here’s a quick list of Do’s and Don’ts to help you sign up with a 3PL Warehouse. Remember, making un-informed decisions and choosing the wrong logistics partner can be more damaging than beneficial to your business.

Do’s

  • Do Check the Location of the Warehouse –

The location should suit your overall distribution plan and preferably closer to your high consumption area. The closer you are to your high customer density areas, the faster you can reach out to them and create a brand value with splendid customer experience.

  • Do Check the capacity of the warehouse –

The capacity of the selected warehouse should suit your current need as well as quickly scalable up as your business grows. The warehouse supplier should also be flexible enough to manage fluctuations in your demands.

  • Do Keep your needs clear –

Unless you are clear on what you would need from your warehouse partner you may never be able to make the right choice. Being crystal clear on your current and futuristic requirements is an important step in finalizing the 3PL warehouse.

  • Do Check the hiring and training policies of the warehouse provider-

The warehouse manpower is a key aspect to be considered for the success of the warehouse services. Checking the hiring and training policy of the 3PL provider can ensure that your goods will be handled well in the warehouse by skilled manpower.

  • Do Check their financial stability

The last thing you want to suffer from, is your warehouse partner limping on financials and unable to support your business. Checking the service provider’s financial stability in the market and their track record with other customers can assist in making the right choice of 3PL partner.

  • Do Ensure that they prefer technology over manual dependency-

Evaluate the service provider based on their usage of Technology at their warehouse. Do they have a good warehouse management system in place? Is the material handling automated? Does the system give you correct reports of the inventory? Can they offer live Inventory Check? The more they use latest technology and equipment at the warehouse, the more beneficial they will be as your partners.

  • Do Check the Safety Policies and Procedures of the 3PL warehouse supplier-

Safety at the warehouse should be a prime focus are of the service provider. It should be applicable for their employees, managers, floor staff and even the consignments. Visit the warehouse and check for Fire Safety provisions, warning signs and labels and adherence of staff to other safety norms. Evaluating the safety equipment and norms being followed at the Warehouse, right at the start, can go a long way in preventing losses later.

 

Don’ts :

 

  • Don’t go for a provider whose warehouse does not have good connectivity to highways, rails and ports-

Since your shipment time is hugely dependant on proximity to roads, rails and ports, having a partner whose warehouse isn’t close to these may delay your speed to market and have a negative impact on your business. Thus not a very great idea.

  • Don’t Over Analyse –

Restrict your search for a 3PL warehouse to maybe a maximum of 3. If you keep considering more and more options, you may miss on the intricate details that you need to check and focus on before signing a 3PL warehouse partner. Keep your list short and delve deep into evaluating them to identify the partner most suited to your need.

  • Don’t fall into the price Trap –

Certain companies go ahead choosing a 3PL warehouse based solely on the pricing. However, this approach may be quite damaging. While you need your warehouse service supplier to be competitive in pricing and not over-charge you, but what is also essential to check is the quality they will deliver. If the warehouse management does not have the necessary quality processes in place, it is ultimately your business that will suffer.

  • Don’t Rush into signing up-

Take your time. Do a proper due diligence of selected suppliers in accordance to your needs. Check for important things like safety, scalability, flexibility and pricing of the supplier and sign up only when you are fully satisfied. Try to build faith and trust between both the parties at the start. This will go a long way in having a successful and mutually beneficial partnership.

15 Comments

  • reviews For privatepharmacy.net

    Hi there, I enjoy reading all of your article post.

    I like to write a little comment to support you.

  • reliablerxpharmacy.com review

    Good day! I just want to give you a huge thumbs up for your excellent
    info you have got here on this post. I will be coming back to your blog for more
    soon.

  • 1stpharm.com review

    Excellent blog here! Also your website loads up fast! What host are you using?
    Can I get your affiliate link to your host? I wish my web site loaded
    up as quickly as yours lol

  • Cheap-rx.com review

    Have you ever considered about including a little
    bit more than just your articles? I mean, what you say is fundamental and all.
    But imagine if you added some great photos or
    videos to give your posts more, “pop”! Your content is excellent but with images and video clips, this blog could
    certainly be one of the best in its niche.

    Good blog!

  • official-drugstore.com scam

    I was able to find good information from your blog articles.

  • privatepharmacy.net scam

    Hello everyone, it’s my first visit at this website, and paragraph is actually fruitful in support of
    me, keep up posting such posts.

  • reliablerxpharmacy.com

    If you are going for finest contents like myself, simply pay a quick visit this
    site everyday as it gives quality contents, thanks

  • מלגזות חשמליות למכירה

    Pretty section of content. I just stumbled upon your
    web site and in accession capital to assert that I
    acquire actually enjoyed account your blog posts. Any
    way I’ll be subscribing to your feeds and even I achievement you access consistently quickly.

  • dich vu guihangdicampuchiavn

    My wife and i got so relieved when Chris could do his studies by way of the ideas hhe grabbed out of
    the blog. It’s not at all simplistic to simply possibly be giving for
    free key points that people today might have been selling.
    And now we realize we need the writer to appreciate because of that.

    All of the illustrations you’ve made, the simple site menu,
    the relationships you aid to engender – it’s may wonderful,
    and it’s really assisting our son in addition to our family imagine that that issue is exciting, and that’s extremely fundamental.

    Thanks foor all!

  • mature anal

    Thanks a lot for the post.Thanks Again.

    • Prudence

      This arcilte went ahead and made my day.

  • Brooks

    magnificent issues altogether, you just gained a emblem new reader. What may you recommend about your publish that you made some days ago? Any certain?

  • Dave Bitter

    Attractive section of content.

  • Anderson Chudzik

    Great post!

  • James

    You made some decent points there. I looked on the internet for the issue and found most individuals will go along with with your website.

  • Write a Comment

    Your email address will not be published. Required fields are marked *