Finding the Right Logistics Provider for E-commerce

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

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.