10 things every shipper needs to consider before hiring a 3PL.
Selecting a 3PL
Includes 11 Modules of Video Training
Some of our business decisions matter more than others. If you choose the wrong laptop, it might cost you $500 – $1,500 to correct your mistake. Choose the wrong phone plan and it might cost you $200 to switch.
But select the wrong 3PL and you could be in big trouble. Here are some of the issues with choosing the wrong 3PL:
- You’ll miss out on working with the best carriers, and overpay for shipping
- You’ll lose access to the fastest carriers, increasing your product turn-around time
- Choose a bad 3PL and your credit rating might even suffer
Missing out on cost efficiencies in shipping could cost you hundreds of thousands of dollars.
Could Bad 3PL Selection Really Cost me that Much?
Let’s say your company spends $1 million on shipping every year and you decide to hire a 3PL to manage all those shipments.
A good 3PL could save your company 5-20% in hard dollar savings, which is a cool $50,000 – $200,000 savings per year. A good 3PL will also deliver soft dollar savings by freeing up your team to focus on the core activities of your business.
A top 3PL will also provide free software (TMS, WMS) and also improve shipping metrics like on time performance, inventory efficiency, non-compliant shipping, etc.
On the other hand, a poor performing 3PL may increase your costs and deliver poor service. The extra cost is bad, but late / damaged shipments could be even worse if they hurt your customer relationships. Poor performance by a sketchy 3PL could cost you a customer!
In this example, the good 3PL could save you $100,000 to $400,000 over two years (average 3PL contract).
Over that same time period, a poor 3PL could increase your costs by over $100,000.
For this kind of money, it makes sense to do a thorough evaluation before you hire a 3PL
Get the 3PL Selection Criteria You Need
That’s why in this guide, we’ll give you the essential 3PL selection criteria you need to choose the right 3PL. Here’s what you’ll learn:
- How the type of 3PL determines how you assess them – and how to assess each of the three types of 3PLs
- The importance of hiring a 3PL with solid processes, and the simple way to tell if they use these processes or not
- How to tell if a 3PL has Lean Values that will save you money
- What you should ABSOLUTELY hear a good 3PL talk about in the initial meetings
- What it means to be Transactional vs Strategic, and why choosing a Strategic 3PL will save you money
- Why working with the wrong 3PL can lower your credit score – and how to avoid a 3PL who damages your credit
NOTE: If you’re looking for a guide filled with fine-print, technical language, and abstract theories, this guide is not for you.
NOTE: If you are looking for an easy to understand, actionable guide, then this si the course for you…
Since we want to make sure that you have absolutely everything you need for confident 3PL selection, we’re also offering you a special Logistics of Logistics offer:
A 1 hour Consultation with 3PL Expert & Training Creator Joe Lynch
Meet with Joe one-on-one over the phone or Skype video chat. You’ll be able to ask any questions related to 3PL selection criteria, or any other questions on choosing or working with a 3PL.