5 Tips to Finding the Best 3PL Service Logistics Provider

With Original Equipment Manufacturers focusing on the sales side of their business, taking the time to optimize post-sales operations becomes an afterthought. This means third-party service logistics (3PL) providers are often vetted for immediate needs without the consideration of continued growth within existing regions and global expansion.

5 Tips to Finding the Best 3PL Service Logistics Provider

This is their first mistake. As an OEM, growth and expansion are two primary goals. However, if the chosen 3PL provider cannot help you scale, you’ll find yourself seeking either a replacement 3PL or an additional provider. By having multiple vendors to achieve your post-sales support, miscommunication becomes inevitable and inventory management becomes a headache.

Finding the Right 3PL Service Logistics Partner

There are multiple factors to consider when evaluating 3PLs, and determining which is the best fit for your OEM operation. Below are the top five things to consider when making partnership decisions for your post-sales strategies.

#1 Identify Current Needs

When evaluating your current 3PL needs you will want to consider the current regions you need services for. You will also need to evaluate your existing service-level agreements (SLAs) to determine delivery timelines. Are you promising customers mission-critical replacement parts will be delivered within two hours – or 24 hours? This will impact which 3PL provider you choose, as their warehousing locations will need to be within proximity to achieve your delivery timelines.

#2 Focus on The Future

As mentioned above, regional growth and global expansion are two important goals for OEMs. However, if the existing 3PL cannot service the expanded regions, you will either need to migrate to another 3PL service logistics partner or add another vendor into the mix. Unfortunately, a multi-vendor approach propagates an environment enabling miscommunication, inventory management errors, and overall inefficiencies. Having a long-term growth and expansion plan will enable you to make the right decision regarding a partnership with a 3PL provider who not only has a large global footprint but also in-region experts to promote successful expansion.

#3 Dive into the 3PL Service Logistics Capabilities

Vetting 3PL providers requires a bit of digging, followed by a certain level of digestion. You want to do your due diligence to ensure you are identifying all the 3PL’s capabilities, and how they align with your current and future needs. This will include IOR and EOR capabilities, the overall global footprint of the solution provider, inventory management technology, and more.

#4 What’s the 3PL’s SLA Rating?

The partnership between you and your 3PL solution provider will directly impact your existing and future client relationships, your brand reputation, and overall customer satisfaction. If your parts aren’t where they need to be, when they need to be there, it’s a negative result for all invested parties. As you are diving into 3PL service logistics companies, be sure to ask what their own SLA achievement percentage is with their current customers. That statistic alone will tell you if they can deliver on their promises.

#5 What Does Onboarding Look Like?

A good 3PL logistics provider should take the time to provide you with a basic understanding of their onboarding process and a projected timetable from start to finish. They should also provide a designated account manager to work hand-in-hand with you – to successfully transition your post-sales service supply chain. Additionally, its important to create an open line of communication and proactively ask questions (if and when you have a concern) to ensure a fluid process.

Conclusion

Aligning with a 3PL is an excellent decision for OEMs looking to increase the efficiency of their current post-sales operations, as well as those seeking out expansion opportunities. However, that does not mean every solution provider is going to be a good fit. Remember to consider existing and future needs, the 3PL’s capabilities and how they may align with your business model, as well as their overall SLA achievement ranking. If they are going to promise you on-time deliveries to protect your customer relationships and foster a positive brand image – they should have the delivery statistics to back that up.