Important Points In Evaluating 3pl Providers

| Friday, November 30, 2012
By Sharlene Fleming


Because there are quite a few 3pl providers, a client might find himself torn between them. To avoid confusion, it is important that he knows the kind of logistic service that he is looking for. He can only find the right logistics company for him if he realizes what these needs of his are.

Now instead of hiring your own people for this, you get them to handle the transportation of your goods from one location to another. Because you hire another company to handle this part of your business, you save yourself the cost of hiring and maintaining employees for the logistics department. You do not just hire individuals but you will also be buying delivery equipment to transport these goods.

You eliminate all that when you outsource the job to a third party. When looking for a company to handle the logistics of your business, find someone that has been into providing this service for a long time. Their experience in the industry can help you in your business by providing you with the most advanced less hassle means of delivering your goods to its intended location.

Whereas when you hire a third party company to handle the logistics of your business, you only pay for you use them for and nothing else. So there are a lot of savings there. There are lean times in business.

It is when there are not many orders as it used to. Since you will only be paying for an agreed service with the third party logistics company, then you will be able to adjust the cost that you incur for this service. Meaning, if there are not many goods to be delivered today, then you are not going to fix a large amount either for the goods.

That is because your fee is directly proportional to the number of goods that need to be transported. This is an example of how a logistics company can be a good option especially during times when there are not many orders coming from customers. However, there could be other arrangement for this since this is depending on what the client and the logistics company will come to terms.

If you have in house team for the logistics, you will be paying the same amount of salary for them even if the business is not making so much money now because there are only few orders placed this month by the customers. You will be maintaining management costs of these people whether or not the company is making profit. That is the big difference there in terms of management cost of having your own in house people for the logistics and the third party people.

These security devices are in the form of cameras installed in the different stations of the warehouse, fire alarms and other devices used for detecting unauthorized entries. Look if they have a computerized system in monitoring the goods. Having a good monitoring system in place gives clients the assurance that they want that their goods are in good hands.

The personnel in the warehouse are that of the 3pl providers. So you are saved the headache of managing these people if they were you own employees. It is important to find the right company to take charge of your logistics needs. Choose the one with the right experience and the right tools and equipment.




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