Questions to ask when selecting a 3PL

Questions You Should Ask a 3PL When Investigating Their Services: A Consultant’s Guide to Making the Right Choice

As a business leader or consultant tasked with improving supply chain efficiency and customer satisfaction, choosing the right third-party logistics (3PL) partner is crucial. A 3PL can either elevate your operations to new levels of performance or become a source of frustration if they aren’t the right fit. Whether you are an eCommerce seller looking to expand or a growing business facing logistical bottlenecks, here are some key questions to ask when investigating 3PL services to ensure you're selecting the right partner.

1. What Are Your Core Services and Specialties?

Understanding a 3PL's core offerings is foundational. Some 3PLs are generalists, while others focus on particular industries or services like warehousing, transportation, or eCommerce fulfillment. Ask about:

• What industries do you specialize in?

• Do you offer both domestic and international shipping?

• Can you handle specific types of goods like hazardous materials, perishables, or high-value items?

  
  

You want to ensure their expertise aligns with your business's needs and that they have experience in your particular sector.

2. How Scalable Are Your Solutions?

Your business might be small now, but it could grow quickly—or face sudden spikes during busy seasons like Black Friday or Cyber Monday. Ask:

• Can you scale your services to accommodate seasonal fluctuations or unexpected growth?

• What is your process for handling an influx of orders?

• Do you have the capacity to manage sudden increases in inventory or shipments without compromising on quality?

  
  

Scalability ensures that you won’t need to switch 3PLs when your business expands or hits peak periods.

3. What Technology Platforms Do You Use?

In today’s data-driven world, real-time tracking, and seamless integration between systems are essential for maintaining control and visibility over your supply chain. Be sure to ask:

• Do you have a user-friendly platform for tracking shipments and inventory levels?

• Can your technology integrate with my existing eCommerce platforms, such as Shopify, Amazon, or Walmart?

• Can You Integrate with Our ERP and Data Warehouse via API, EDI, or FTP?

  Seamless integration between your 3PL and internal systems is crucial for real-time data flow and operational efficiency. Ask:

  • Do you support integration with our ERP and data warehouse through API, EDI, or FTP?

  • Can your system facilitate smooth communication and data exchange across these platforms to ensure accuracy and visibility in inventory management, order tracking, and reporting?

    
    

This ensures your 3PL can adapt to your existing tech stack and enhance your operational processes.

4. What Are Your Average Delivery Times and Shipping Accuracy Rates?

Customer satisfaction is often directly linked to delivery speed and accuracy. Late deliveries or errors can damage your reputation, so ask:

• What are your average delivery times for domestic and international shipments?

• What is your order accuracy rate, and how do you ensure quality control?

• Do you provide rate shopping services? Can you access Amazon's Buy Shipping service and utilize this service for Amazon consumer shipments?

• How do you handle exceptions like lost or damaged shipments?

Reliable, fast, and accurate fulfillment is key to maintaining customer trust and loyalty.

5. How Do You Handle Returns and Reverse Logistics?

Returns management is often an overlooked aspect of the supply chain but can have a significant impact on your bottom line. Investigate:

• What is your process for handling returns?

• Do you have a dedicated reverse logistics system in place?

• How do you handle restocking and refund processing?

A 3PL with a streamlined and efficient returns process will help reduce losses and keep customers satisfied.

6. What Are Your Pricing Models?

Cost is an obvious factor, but it’s essential to dig deeper into how pricing is structured. Ask:

• What are your standard rates for warehousing, fulfillment, and transportation?

• Are there any hidden fees, such as minimum volume charges, long-term storage fees, or surcharges during peak times?

• Do you offer flexible pricing models, such as pay-as-you-go, that can adapt to changing business needs?

Understanding the pricing structure helps you avoid surprises and ensures that the 3PL is a financially sustainable choice.

7. Do You Meet Amazon's Seller Fulfilled Prime Requirements?

If you are an Amazon seller looking to offer the Prime badge while maintaining control of your fulfillment, this question is critical. Amazon Seller Fulfilled Prime (SFP) allows merchants to fulfill orders directly from their own warehouses or through a 3PL, while still displaying the coveted Prime badge on listings. Ask:

• Are you capable of meeting Amazon’s stringent Seller Fulfilled Prime (SFP) requirements, including 1- and 2-day delivery options?

• Do you have experience managing Seller Fulfilled Prime accounts, and can you provide references or case studies from clients using this program?

• How do you ensure that SFP orders meet the strict delivery performance standards set by Amazon?

A 3PL that meets these requirements allows you to expand your reach within Amazon’s marketplace without relying on Fulfillment by Amazon (FBA), which can help reduce costs while maintaining high service levels.

8. What Security and Compliance Measures Do You Have in Place?

If you're handling sensitive customer information or shipping regulated goods, security and compliance are critical. Ask:

• How do you ensure data security for eCommerce transactions?

• Are you compliant with industry-specific regulations, such as FDA, ISO, or customs requirements?

• What measures do you have in place to prevent theft, damage, or fraud?

Security and compliance are non-negotiable, especially when handling high-value goods or customer data.

9. What Is Your Customer Service Like?

The relationship with your 3PL partner goes beyond technology and logistics—it’s also about communication and support. Ask:

• Do you offer dedicated account managers or customer support representatives?

• What is your response time for resolving issues or answering questions?

• What is your shipping SLA? What is your response time SLA?

• How do you handle emergencies or unexpected problems, like shipping delays or lost packages?

Reliable, responsive customer service ensures that when issues arise, they are quickly addressed, preventing disruptions to your supply chain.

10. What Is Your Operating Schedule?

Understanding a 3PL's operating hours is essential for planning and ensuring timely deliveries, especially during peak seasons. Ask:

• What days of the week do you operate and ship during the non-holiday season?

• What is your holiday season operating schedule, and do you offer extended hours or weekend support?

• What holidays are you closed?

This helps ensure there are no unexpected delays in your fulfillment process, particularly during critical sales periods.

11. Can You Prep and Ship Bulk Shipments to Walmart WFS and Amazon FBA?

For businesses working with Walmart Fulfillment Services (WFS) or Amazon Fulfillment by Amazon (FBA), ensuring your 3PL can handle bulk shipments efficiently is key. Ask:

• Can you handle the preparation and shipping of bulk shipments to Walmart WFS and Amazon FBA?

• What is your bulk shipment SLA?

Ensuring smooth and timely bulk shipments helps keep your inventory levels optimal and avoids delays in listing availability.

12. Can You Create Bundles or Kits in Advance or at the Time of Order?

If your business involves selling product bundles or kits, it’s essential to know if your 3PL can accommodate this type of service. Ask:

• Can you create product bundles or kits in advance and store them until they are ordered?

• Can you assemble bundles or kits at the time an order is placed?

This flexibility allows for better inventory management and meets varying customer demands.

13. Can You Provide References or Case Studies?

Nothing speaks louder than results. Request:

• Can you provide references from businesses similar to mine?

• Do you have case studies that highlight how you have helped companies grow or overcome logistical challenges?

References and case studies give you a clearer picture of the 3PL’s performance, credibility, and reliability in real-world situations.

14. How Sustainable Are Your Operations?

Sustainability is no longer just a buzzword; it’s becoming a vital component of modern supply chains. Customers expect eco-friendly practices, so ask:

• What are your sustainability initiatives, such as reducing carbon emissions or using eco-friendly packaging?

• Do you have a plan for reducing waste or optimizing transportation routes to minimize environmental impact?

A 3PL with strong sustainability practices can help you build a more responsible and future-proof business.

Conclusion

Choosing the right 3PL partner is a pivotal decision that can directly impact your operational efficiency, customer satisfaction, and profitability. By asking these critical questions, you’ll ensure that the 3PL you choose can meet your current needs, scale with your growth, and act as a true partner in your business’s success.

As a consultant or business leader, taking the time to investigate thoroughly can save you headaches in the future and set you on a path to sustained growth and operational excellence. If you need assistance in vetting 3PLs or optimizing your logistics, feel free to reach out—let’s strategize the best logistics solutions for your business together!

For more detailed strategies and best practices, click this link to schedule your complimentary 30-minute consultation.