How to Select the Best 3pl Provider

After working for 3PL's for about 10 years There are 3 mistakes brands make when looking for a new 3PL. Do the opposite of these. #1 - Neglecting Cultural Fit and Communication Styles The relationship with your 3PL is more than just transactional; It is a long term "marriage." Avoid underestimating the importance of cultural fit and effective communication. Misaligned values or communication breakdowns can lead to frustration and inefficiency. Questions you should ask yourself ⬇️ Do you want a slack channel for you and your 3PL? Do you want an account manager on the ground at the warehouse? How quickly do they respond to your inquiries during procurement? (Its probably an indication of what the relationship will be like) Who are the types of people that work at the 3PL? What background do they have? Is it in logistics/supply chain? #2 - Not doing enough thorough research This is the one that bites people in the ass the most. You dont 25 different 3PL's in the mix. You need a solid 5. Better to go a mile deep than a mile wide. As a sales rep - this next part is kind of counterintuitive. Don't take the sales pitch at face value. Look for objective, third-party opinions and reviews to get a well-rounded understanding of their capabilities and service quality. Sure, sites like G2 and Trust Pilot are good but go deeper. Ask the 3PL for client referrals. Even better - go to their customer testimonial page and reach out to the brand by yourself. Go to e-com communities (Reddit, Facebook) - try to get in virtual or in person reviews of the 3PL performance. Once you dwindle down the list to your top 2-3 Then start understanding the company financials. I have seen many 3PL's either been shut down due, forcing merchants to leave abruptly. This is a crucial step. # 3 - Overlooking Scalability and Flexibility: You are, ideally, finding a 3PL partner for the next 3 years. Not the next 6 months. As your business grows, your logistics needs will evolve, and your 3PL should be able to accommodate this growth. Ask how they have supported the growth of brands throughout the years. The answers, or lack thereof, will be telling. Have them give you an example (or two) of them bending over backwards for a client when times got tough. Ask them how peak 2023 season went. Don't take "good" as a surface level answer. Ask more specific questions. Ask to what extent they dealt with large processing delays. What their average delivery time was. Any unexpected situations that came up and how did they handle them? I could go on forever, but these 3 areas are often most overlooked. The more you know, the better you will be choosing the right partner . #3PL #logistics #supplychain

So your business is expanding or has blown up overnight....what should you be looking for in a 3rd party fulfillment (3pl) party. 1️⃣ Expertise and Specialization: Look for a 3PL provider with expertise in your industry and specialized services aligned with your needs. Whether it's e-commerce fulfillment, perishable goods handling, or specialized transportation, partnering with a company well-versed in your sector can offer tailored solutions and insights. 2️⃣ Technology and Innovation: Evaluate the technological capabilities of prospective 3PL partners. Advanced systems for inventory management, order tracking, and real-time analytics can significantly enhance visibility and streamline operations within your supply chain. 3️⃣ Scalability and Flexibility: As your business grows, your logistics requirements may evolve. Seek a 3PL provider capable of scaling operations seamlessly to accommodate fluctuations in demand and seasonal peaks. Flexibility in service offerings and contractual agreements is key to adapting to changing market dynamics. 4️⃣ Geographical Reach and Network: Consider the geographical reach and network of the 3PL provider. A robust network of distribution centers and transportation hubs can enhance speed-to-market and reduce transit times, ultimately improving customer satisfaction. 5️⃣ Operational Excellence and Compliance: Prioritize 3PL partners with a track record of operational excellence and adherence to industry regulations and compliance standards. Certifications such as ISO, C-TPAT, and TSA can signify a commitment to quality and security throughout the supply chain. 6️⃣ Cost and Value Proposition: While cost is a significant factor, focus on the overall value proposition offered by potential 3PL partners. Evaluate not only pricing structures but also the level of service, reliability, and added value initiatives such as sustainability practices or value-added services. 7️⃣ Customer References and Reviews: Finally, seek out customer references and reviews to gain insights into the experiences of other businesses partnering with the 3PL provider. Positive testimonials and case studies can provide confidence in the provider's ability to deliver on promises. Choosing the right 3PL partner is a strategic decision with long-term implications for your business success. By carefully evaluating these factors, you can identify a partner that aligns with your goals, enhances operational efficiency, and drives growth in your supply chain. #SupplyChain #Logistics #3PL #Operations #BusinessStrategy #SupplyChainManagement #Partnership

Looking for a new #3PL? You need to figure out what your priorities are first. 🗺 Geography: Near a port? Near your factory? Tax implications for cross border (see our blog on Section 321). Where you’re manufacturing or importing from, timing of manufacturing runs and cost of freight from factory to warehouse. If you are selling something meltable, you can’t pick a warehouse in Texas that doesn’t also have ambient temperature regulation in place. Your geography will be key to making sure the costs of your shipments will be efficient. I'm a huge fan of Alpacka Fulfillment - they're located in Northern California near the Port of Oakland. Perfect for shipments coming in to the west coast and not as congested as the Port in Long Beach. 🖥 Tech stack: Are you on Shopify? Woocommerce? Magento? TikTok? Using an ERP? Using EDI? This is a critical piece. If your warehouse doesn’t have an integration you need it may cost more to get onboard. Not all WMS systems are created equal so if you have one you've worked with and are comfortable with, put that on your list as a "nice to have". ShipHero is a favorite of mine, I find it easy to use and it has some extra features that help in managing your processes. What shipping speeds do you offer in your sales channels? Having ALL your tech stack in there will be important. To avoid manual processes for order management and inventory you will need them to have an API integration to your sales channels and your inventory management software. If you’re selling B2B via EDI you’re going to want to make sure they know that as well. Keep in mind what you want for “future” tech stack as well. 🤕 Your current pains: Make sure they know what you want to fix now, what needs improvement, what aligns with your goals. Being specific here will give you a chance to fix the things that are holding you back. ⏰ Timeline: In a hurry? Have a shipment on the way with no destination? Got into a big fight with your spouse because you’re fulfilling out of the garage and they want to park the car there? Having expensive problems with your current warehouse? Warehouses will phase in new customers to avoid too much pressure on the daily operations so knowing your plans will also help them to know if they can accommodate you. Is that all? Not even close but I'll save the rest for tomorrow so this post doesn't turn into a novel. #RFP #3pl #supplychain #logistics #ecommercefulfillment

Exploring 3PLs for your business? Here are 10 essential questions to guide your decision: 1. What are your service fees, and how do they break down? 2. How many clients or businesses do you currently serve? 3. How long have you been in the 3PL industry? 4. What technology or systems do you use for order and inventory management? 5. How do you ensure accurate and timely order fulfillment? 6. What is your approach to handling returns and managing reverse logistics? 7. Do you provide real-time visibility into inventory levels and order status? 8. How do you handle peak seasons or sudden spikes in order volume? 9. What performance metrics do you track, and how do you communicate them to clients? 10. Is there flexibility in your contract terms, and what is the process for scaling services up or down? Remember, these questions are a starting point. The right 3PL partner is crucial for your supply chain success, so don't hesitate to dig deeper and ask additional questions tailored to your specific business needs. Treating the selection process like a job interview ensures you find the best fit for your logistics requirements. #supplychain #3pl #logisticssuccess

Your 3PL isn't just a vendor—it's the single biggest lever you're ignoring. We ship 35,000 orders monthly with a tiny 0.16% error rate. Here's how we turned our logistics from a headache into a competitive advantage... When I tell other founders our error rate is 0.16%, they don't believe me. That's just 50 mistakes in 35,000 monthly orders. If we had settled for “industry standard” rates of 1-3%, that would = 350 to 1050. This isn't luck. It's the difference between a service provider and a true partner in your business. Most founders underestimate the complexity behind the scenes: • Multiple product variations • Bundled offers • Flash promotions • Custom inserts • Subscription management • Retail allocation One small mistake in any of these compounds into customer service nightmares, retention issues, negative brand perception, and cash flow problems. Here’s how we deal with this → Our 3PL built us an HOURLY inventory tracking system with near-perfect accuracy for over six years. Do you obsess over attribution models for your marketing spend but accept outdated weekly inventory counts? That's madness. Real-time inventory visibility changes EVERYTHING: • Confident marketing decisions • Better cash flow management • Proactive stock planning • Prevention of stockouts But the biggest unlock isn't technology — it's communication. We have 20+ dedicated Slack channels with our 3PL team, designed to help organize every possible scenario from customs delays to bundle changes. When something critical happens, we can text their leadership directly. We actually take it on step further with them and have our main rep, JOIN our weekly all hands. This way there are no surprises for them (or us). EVER. Now, tell me a 3PL that's willing to do that? This isn't standard. This is a TRUE partnership. Something you need to forge with your key supply chain vendors. The moment I knew we had something special came a few years ago... When we were about to stock out during a major promotion, our account manager called me at 11pm. But it wasn’t to report the problem, it was to share their solution. ❤️ Other reasons our 3PL works for us: → They're centrally located in the US, providing exceptional blended shipping rates. → Their pricing model has no surprises - we know our costs based on order volume. But most importantly, they treat Obvi like their own business. If you're in the market for a 3PL that truly understands DTC brands and can scale with you, DM me. I don't recommend partners lightly, but this relationship has been transformative for our business.

5 Key Considerations When Choosing a 3PL Partner for Your E-commerce Brand As your e-commerce business grows, selecting the right 3PL becomes crucial. Here are some factors to keep in mind: 1. Scalability: Look for a partner who can handle your current volume and accommodate future growth. Flexibility is key. 2. Technology Integration: Seamless integration with your e-commerce platform can significantly boost efficiency. Don't overlook this aspect. 3. Specialization: Consider 3PLs with experience in your product category. Their expertise can be invaluable. 4. Geographic Reach: Think about your customer base. Strategically located warehouses can reduce shipping times and costs. 5. Value-Added Services: Look beyond basic pick, pack, and ship. Additional services can help set your brand apart. Remember, the cheapest option isn't always the best for long-term growth. Focus on finding a partner that aligns with your business goals and can support your expansion. What other factors do you consider crucial when selecting a 3PL partner? Share your thoughts below! 📦

Brands usually only approach us once they’ve had nightmare experience with another 3PL. Let me explain. Things like: - Late shipping times - Poor product handling - No consistent communication - Complicated invoices - Compliance issues when sending stock to FBA (big one) Just things that’ll hamper your logistics & slow down your brand’s operations. Usually it’s because brand owners opt for the cheapest warehousing & storage they can find. But spending that extra 10% or 20% on a reliable 3PL that you can trust is worth its weight in gold. Especially if they do more for you than solely just warehousing. Not to toot my own horn, but at At AMZ Prep we: - Hyper focus on eComm / DTC and Amazon fulfillment (FBA, FBM, SFP) - Provide warehousing across the US & Canada @ 98% accuracy  - Communicate daily with our customers via slack  - Built an entire consulting wing for international expansion & enablement - Decided to never have customer service with ticketing system (best idea) - Host monthly & quarterly performance reviews with accounts - Work directly with the Amazon teams directly to ensure we are up to date with compliance - Plan annual fly outs with our larger brands to meet them in-person The point being is make sure you do your research. Research different 3PLs & ask them the following questions: - What sets your company apart from other 3PLs? - What do you consider your specialty? (Amazon, eComm, Retail..etc) - Do you have case studies I can read? - Can we see an onboarding roadmap?  - What happens when things go wrong? If you have the budget, fly out to go for a warehouse tour. If you can’t, ask for a virtual face tour on face time…. You’ll get to understand the operations and setup quickly. Spend $500 to save $5000 down the line is my motto here. We’ve even paid for some of our prospects flights to meet in person. Just cause I know once they see the warehouse, meet the team, the robots. It’ll be a done deal. I’d rather you get this right the first time. It’ll save you so much headache in the long run. The logistics aspect of every eCommerce business is so under rated. Yet, they will just hire the first warehouse that provides $15 storage.