There are certain stages of development where your company can't simply manage every aspect of warehousing and shipping. From unloading trucks to storing products, these operations sometimes require help from another. That's what third-party logistics services can deliver for companies at your stage. Just make sure you use these pro tips to make these solutions pay off now and even later down the road.
Make Sure Third-Party Logistics Provider can Adapt
If you don't end up working with a third-party logistics provider that can adapt, you may have to switch services at a later point. That would be time-consuming and cause a lot of logistical issues regarding shipping and warehousing. You thus need to find one of these providers that can adapt from the beginning.
If your needs change or technology makes adaptation necessary, you want a provider that can respond so that your shipping and warehousing operations never take a huge hit. They should adapt without second-guessing how their logistics operations will carry forward.
Assess Level of Commitment
Your company probably is very committed to working with a third-party logistics provider because they're taking a lot of steps off your shoulders, which could include finding space for products and organizing them in a strategic manner before they go out for shipping.
But just how committed is the third-party logistics provider? Do they care about your company and want to provide exceptional services so that you're able to grow at the right pace? You need to find this out before making your hire so that you get the best services now and even years later.
See How They Manage Costs
You don't want costs getting away from your third-party logistics provider because if they did, your costs for keeping this relationship may go up too. So before this relationship starts, take your time to see what capabilities a third-party logistics provider has with managing costs.
Their warehouse operations and shipping practices both need to be as efficient as possible so that costs don't keep piling up. An experienced logistics provider that has worked with dozens of different business types can usually handle cost management at a level that you'll remain comfortable with. Then you'll truly get the most out of these services and feel better about how much you spend to keep them going.
If you're working with a third-party logistics provider to deal with the complexities of shipping and warehousing -- at least for the time being -- then do everything to make a selection rooted in proven results.