Network Optimization for Supply Chains: A 3PL Guide
It can be rather difficult at times to find trustworthy partners to represent your company. And for some reason, this is especially true when you need to hire a 3PL.
Businesses from Fortune 500 giants all the way to mom and pop shops face one of the same struggles. That is, the struggle to hire dedicated, professional, and experienced employees and subcontractors.
This is especially true of companies that rely on a full-scale supply chain.
The process of moving freight from one point to another is a highly complex endeavor in most cases. Furthermore, not all businesses are able to afford to shift their focus from one area of their operation to another quite so easily. And it is for this very reason that businesses often hire a 3PL company to help them manage many of their day-to-day logistics operations.
In past articles, we've talked more than a little about how not all 3PLs are created the same and how they differ. But in this post, we are going to talk about what makes the good ones truly stand out.
What are The 3 Traits You Should Look for Before You Hire a 3PL?
When you hire a 3PL, you are hiring a company that essentially represents your company and makes decisions for the supply chain on your behalf. They speak as your representative through a network of carriers and distributors. Additionally, they generally handle all the paperwork involved.
Needless to say, with as much access and decision-making capabilities that a 3PL has over a company's supply chain, they need to carry certain traits. Traits that exemplify their trustworthiness, transparency, and communication.
There are many different types of 3PLs out there for you to choose from. However, sometimes it can be difficult to figure out which one has what it takes to get the job done!
So, what traits should you be looking for when you hire a 3PL?
- Transparency
- Collaboration
- Flexibility and Understanding
Transparency
Most of the mistakes made within the supply chain are the direct result of some kind of miscommunication or hidden data.
A trustworthy third-party logistics company is able to admit when they've made a mistake. Providing further details on how this mistake happened and how it will not be repeated shows a good degree of transparency.
While the goal of any supply chain function is to minimize mistakes, it would be illogical to assume that everyone is perfect. Even more so to assume that everything will always go as planned.
So, if you're going to hire a 3PL, make sure they represent themselves in a transparent light right from the start of the relationship.
Collaboration
Seeking the input of others, and just being a good team player all-around, is a highly valuable skill and trait. And not everyone pulls it off very well, so when you find one that does, keep them around!
If you want your 3PL to provide stellar service for you, it can really only be achieved through collaboration. Contrary to popular belief, third-party logistics companies are not mind readers!
The best 3PL's understand the value of collaborating with their clients from start to finish. They want to learn how your business works, the struggles you're currently having, and most importantly what goals and objectives you have for both the short and long-term.
The most professional third-party logistics companies welcome your input. Likewise, you should welcome theirs.
After all, 3PLs are built specifically for collaboration.
Flexibility and Understanding
Supply chain experts realize that business can fluctuate. This ebb and flow of demand for goods is completely natural and expected.
In fact, most retailers and manufacturers experience peak volume times during the year. The best third-party logistics companies not only realize this, but they tailor service offerings to comply with their client's flexible business needs. They are able to provide scalable services, cut back when needed, and pick up the extra volume as the need increases.
This flexibility ensures that your supply chain operations continue to flow smoothly and without disruption of service.
Final Thoughts
The best 3PLs have years of experience and a proven record for being honest, transparent, flexible, and collaborative. Sadly, it is also a sector of the shipping industry that requires a certain type of company to pull the job off without a hitch.
That's not to say that there aren't any more good 3PLs left out there. Quite the contrary, you just have to know how to find them by understanding which traits a good 3PL should exemplify.
At Redwood Logistics, we've established strong relationships with the clients we serve dailya0through our Modern 4PL approach. Furthermore, we have a professional, attentive, and dedicated staff that represent our client's companies with pride.
If you need to hire an experienced 3PL to take some of the load off your end, contact our team today!
FAQs
What should you look for when choosing a 3PL partner?
The most important traits are transparency, collaboration, and flexibility. A good 3PL should communicate clearly, admit mistakes when they happen, and explain how they will prevent repeat issues. They should also work with you as a true partner, learning your business goals and adapting service levels as your volume changes over time.
Why is transparency so important in a 3PL relationship?
Transparency matters because many supply chain problems come from miscommunication or hidden data. A trustworthy 3PL is open about errors, explains what caused them, and shows how they will avoid the same problem in the future. That kind of honesty builds trust and helps you manage operations more effectively.
How does collaboration help you get better results from a 3PL?
Collaboration helps a 3PL deliver better service because logistics providers are not mind readers. The best results come when the 3PL learns how your business operates, what problems you face, and what goals you want to achieve. Strong collaboration works both ways, with your team and the provider sharing input throughout the relationship.
What does flexibility mean in a 3PL provider?
Flexibility means a 3PL can scale services up or down as your business changes. That is especially important for retailers and manufacturers that experience peak seasons or shifting demand. A flexible provider helps keep freight moving smoothly without creating disruptions when volume increases or when you need to pull back.
Why do businesses hire a 3PL instead of managing logistics in-house?
Businesses hire a 3PL to handle complex day-to-day logistics work without pulling internal teams away from core operations. A 3PL can manage freight movement, carrier coordination, and paperwork on the company’s behalf. That support is especially valuable when a business relies on a full-scale supply chain but does not have the time or staff to manage every detail internally.
How do you know if a 3PL is representing your company well?
A 3PL represents your company well when it communicates professionally, acts with accountability, and makes decisions that reflect your priorities. Because the provider speaks on your behalf through carriers and distributors, it should operate with the same care you would expect from an internal team member. A strong relationship also depends on clear handling of paperwork and supply chain details.
What makes the best 3PLs stand out from average providers?
The best 3PLs stand out because they combine experience with honesty, transparency, flexibility, and collaboration. They do not just move freight; they understand how to support a client’s changing needs and communicate clearly when issues arise. That combination makes them more dependable than providers that only offer basic logistics execution.
