Red Flags to Avoid When Searching for a 3PL Service
As a prudent business, you know you're not in the best place to handle all aspects necessary to make your operations successful. For instance, while you may need to move things around, it is just an enabler to your business and only serves to split your attention and efforts. Outsourcing would work to your advantage.
Rather than attempt to maintain a logistics fleet, partner with a 3rd party logistics provider. They have significant benefits for your operations. That said you need to watch out for a few things before choosing to work with one that appeals to you. Read on to learn 4 of the most common red flags you may encounter when engaging a 3PL service.
Lack of Experience
Experience is crucial for any successful 3PL provider; its lack is a glaring red flag. This essential factor can help companies know which plans and contingencies to make and when they're pushing the envelope too far. Failure to have this critical trait can negatively affect your operations.
Consider working with a 3PL provider with a solid, proven track record in the logistics industry. Newer companies may not have the resources and expertise to handle complex logistics services. This may seriously interfere with your business and cause delays, errors, and other inconveniences.
Any successful relationship requires seamless communication. When you rely on a 3PL provider to move around your products for effective commerce, a good working relationship is essential with communication as the foundation. Without it, you'll be building on quicksand.
If a company you are working with or looking to engage does not communicate clearly or effectively, it is time to walk away from them. Lack of communication is the root of missed deadlines, confusion, and other frustrating mistakes. Before settling for a long-term working relationship, ensure the 3PL provider can communicate clearly about timelines and costs, and is transparent and responsive.
A 3PL service that has limited resources is a serious red flag. If you are a business that needs large-scale logistics and your provider cannot handle such logistics operations, you are likely going to encounter pain and frustration. Some things you could experience include lost shipments, delays, and reroutes, among many others.
Before penning your signature on the dotted line, do a lot of homework to determine whether the 3PL provider has the necessary resources to meet your needs and can scale to serve your company as it grows.
Lack of Flexibility
As a growing company, you require a lot of flexibility to operate. A good 3PL provider should know this and be flexible with the services they offer. If you are working with a rigid company, expect trouble ahead. Such inflexible companies may be unable to adjust to changes in demand, supply chain disruptions, and other events that affect your business. A good 3PL should have experienced these disruptions at some point and will therefore be flexible enough to go with the flow.
Your 3PL Partner of Choice |R&S Logistics
We at R&S Logistics are your partner of choice; we are ready to work with you for the smooth running of your business. From our location in Knoxville, Tennessee, we can serve half the United States with a day's drive. Imagine what these conveniences can do for your business. Schedule a tour today if you would like to see more about how we can help you scale your business and conquer your preferred markets. For more information concerning 3PLs, contact us at (865) 388-6715 or fill out around contact form.