Choosing a 3PL warehouse is a big decision for any business. You need to make sure you're aware of the common mistakes people make when choosing a 3PL so that you don't make the same ones yourself! In this blog post, we'll outline five of the most common mistakes business owners make and what you can do to avoid them. Keep reading to learn more!
1. You Haven't Completed Your Homework
Anyone nowadays can have an online presence. A 3PL business could have a website even if it lacks real-world experience or clients. You'll have to seek both skill and knowledge while looking for an excellent 3PL partner.
Request research papers or a competent reference from your prospective 3PL partner. They must be able to present you with a large number of referrals if they deliver continuous, outstanding service to their clientele.
2. You've Has Been Putting Off Outsourcing Your Logistics For Far Too Long
We hear all too frequently from customers who delayed until they delivered 500 orders per month out of their spare room before looking for a 3PL partner. While it's rarely "too late" to find a new partner, preparation ahead of time will make the shift go more smoothly.
Your prospective 3PL partner will be able to plan fresh stock shipments to their warehouses and gradually move your procedures over to ensure that your customers are unaware of the transition.
People take much too long to change from a 3PL supplier they are dissatisfied with. It may be a difficult task that no one likes to have, but it is necessary. However, if your present 3PL supplier isn't meeting your or your customers' expectations, you should begin arranging your shift as soon as possible before the difficulties worsen. You would not want to struggle with missing shipments, dissatisfied customers, or a strained relationship with your current supplier, on top of the additional labor of transferring to a new firm.
3. Choosing A Variable-Rate 3PL Provider
Variable-Rate 3PL Providers can help you begin your business at a low cost, yet they can also result in hidden fees and expenses that you won't notice until you receive your invoice. Fully understanding what you owe your 3PL provider will assist you in planning and maintaining your expenditures underline, particularly as your company expands.
Flexible rates also imply that both parties spend much more time nickel and diming each other than working. You'll only have to discuss your agreement once with a flat-rate contract, and you'll know precisely what your price will be each month after that.
4. Not Believing Your Third-Party Logistics Provider
Any relationship may be bumpy if there is a lack of trust. It can also lead you to micromanage, which is a waste of money and time and the point you engage a third-party storage and distribution specialist in the first place.
If you've done your research and found a 3PL partner you believe is capable of completing the project, attempt to give them the benefit of the doubt. They'll need time to grasp the specifics of your item and operation, but they handle track of inventory for dozens of businesses just like yours. Invest your days doing what you do effectively and leave the rest to others.
5. Being Non-Transparent
Another classic 3PL blunder is considering your next-year estimations and estimates as a trade secret. While you may be apprehensive about disclosing sensitive data with anybody outside your company, your 3PL partner should act as an addition to your staff.
When choosing a 3PL partner, consider your company's long-term ambitions to ensure that they can develop with you. Make your prospective 3PL provider informed if you have a fresh product that requires shipping approvals or if you intend to increase your business in the following year.
Honesty is just as vital if your sales are dropping or your organization is suffering. Your 3PL partner can lead to significant savings by eliminating costly overnight delivery or making other modifications to your 3PL contract.
Now that you know the five most common mistakes people make when choosing a 3PL, it's time to take action. Avoid these pitfalls and you'll be on your way to finding the perfect 3PL for your business. If you're still not sure where to start or need help making the final decision, reach out to Conveyr. We're here to help businesses just like yours find the right 3PL warehouse solution for their needs. Thanks for reading!