4 Tips for Finding The Right 3PL Partner

Third-party logistics (3PL) companies are a great resource for any shipper. 3PLs provide services that add value to your supply chain and work with you to maximize efficiencies. It is important shippers take the time and ensure their 3PL partner is the right fit for them. Here are four tips on finding the right 3PL partner that will work with you to further the success of your business.    

Verify Their Services

Most 3PL’s are quite diverse in the services they provide. However, some 3PL providers are specialists in an individual industry or supply chain function. Some of the most common service areas of a 3PL include:

• Transparency – A great 3PL should give you visibility and tracking of your freight and ensure you are comfortable with their methods in making sure your freight is safe and on-time.
• Technology – Most 3PLs are equipped with a TMS system that improve customer communication for shipment planning.
• Round-the-clock customer service – What happens if there is an issue that needs immediate attention? You should be able to communicate with your 3PL whenever an issue arises.
• Reporting / Updates – However the method, a great partner provides you with constant updates regarding your specific routes/lanes/ETA’s etc.
• Experience / Knowledge – The right 3PL partner brings the expertise and network needed to help you determine the most efficient and cost effective way to transport your freight. 
• Supply Chain Solutions – There will be times when issues arise, you want a 3PL partner who has the resources needed to help you determine the proper solution for any part of the supply chain process.

There are some 3PL’s who are full truckload (FTL) specialists, while others are experts in LTL/Reefer/Flatbed or even overseas shipping. Regardless, the important item to remember here is to verify all of the services the 3PL offers – and make sure it fits your needs; not only today but in the future.    

Check their Certifications and References

After you’ve located a good 3PL, and verified they offer the right services for you, the next step is to verify that they are licensed to provide freight broker services by the FMCSA. The organization that oversees freight logistics is the Federal Motor Carrier Safety Administration (FMCSA).  Among this certification, you should also verify that they maintain the correct insurance, bonding, and safety standards to complete the services you require on your behalf – and on an ethical standard. The thing to remember about a 3PL is that they will be an extension of your company and brand. So, make sure you find one that will ethically represent your company and has the right certifications, licenses and requirements to do so.    

Inquire About their Claims and Insurance Processes

When you’ve narrowed down your list of qualified candidates, you should ask each 3PL about their process for protecting your assets – such as filing insurance and freight claims.  A professional 3PL always has a robust and easy to understand program for setting up insurance for your specific type of shipping and filing damaged claims if that occurs. They should also articulate how they avoid needing to file these inconvenient claims via the carriers.    

Test their Communication Standards

The best and most qualified 3PL’s will be ethical, honest, open, and transparent. So, make sure to ask them as many questions as you need. They are there to quell your concerns and make you feel comfortable and confident in their abilities. Still need help finding a 3PL that is right for you? Reach out to the experts at Franco Logistics today!