What companies should consider when picking a third-party logistics company

Oct 22, 2023

Third-party logistics (3PL) companies play a vital role in the supply chain, providing warehousing and transportation services to businesses of all sizes. When choosing a 3PL partner, it is important to consider a number of factors to ensure that you are getting the best possible service and value for your money.

Here are some of the most important things to consider when picking a 3PL company:

Services offered

The first step is to identify the specific services that you need from a 3PL company. This may include warehousing, transportation, order fulfillment, and/or other value-added services. It is important to make sure that the 3PL company you choose offers the full range of services that you need.


It is important to choose a 3PL company with experience in your industry and with products similar to yours. This will help to ensure that the company understands your specific needs and can provide you with the best possible service.


Talk to other businesses in your industry to get their recommendations for 3PL companies. You can also read online reviews to get a sense of the reputation of different companies.


Get quotes from multiple 3PL companies before making a decision. Be sure to compare the total cost of services, including any hidden fees.


The 3PL company you choose should have a robust technology platform in place to manage your inventory and orders. This will help to ensure that your orders are shipped accurately and on time.

Customer service

The 3PL company you choose should have a good reputation for customer service. You should be able to get in touch with a customer service representative quickly and easily if you have any questions or concerns.


Consider the location of the 3PL company when making your decision. If you need your products to be shipped quickly, you will want to choose a company that is located close to your customers.


If you expect your business to grow in the future, you will need to choose a 3PL company that can scale with you. The company should have the capacity to handle your increased shipping volume without sacrificing quality or service.


The 3PL company you choose should have security measures in place to protect your inventory. This includes measures to deter theft and damage, as well as measures to protect your customers’ data.


If sustainability is important to your company, you may want to choose a 3PL company that is committed to sustainable practices. This may include using green transportation methods and energy-efficient warehousing facilities.

Once you have considered all of these factors, you will be able to make an informed decision about which 3PL company is right for your business.

Here are some additional tips for choosing a 3PL company:

  • Get everything in writing. Once you have chosen a 3PL company, be sure to get your service agreement in writing. This will help to protect you in case of any problems down the road.
  • Communicate regularly. Once you have established a partnership with a 3PL company, it is important to communicate regularly with your account manager. This will help to ensure that your needs are being met and that any potential problems are addressed quickly.
  • Monitor your results. It is important to monitor the results of your 3PL partnership on a regular basis. This will help you to identify areas where the company can improve and to make sure that you are getting the value for your money.

By following these tips, you can choose a 3PL company that will help you to streamline your supply chain and improve your customer service.