5 Tips for Selecting a 3PL Warehouse

Many companies want to take advantage of the flexible offerings available in today’s 3rd party logistics (3PL) warehouse market. 

Companies seek partners for various reasons ranging from flexible cost, location, or specialized services.

Choosing a partner can be a daunting task.

Here’s a list of the top five criteria that our customers use when reviewing warehouse partners. 

Top 5 Tips for Selecting a 3PL Warehouse

1. Location: Warehouse location is a critical factor in evaluating a 3PL provider. A strategic location ensures that your goods can be transported quickly and cost-effectively to your customers.
2. Technology: Technology is important in managing inventory and streamlining warehouse operations. You should look for a 3PL provider that has invested in the latest technology, such as a warehouse management system, barcode scanners, and other automation tools.
3. Capacity: The capacity of the warehouse is another crucial criterion to consider. The provider should have enough space to accommodate your inventory and be able to scale up or down based on your business needs.
4. Service Level Agreements (SLAs): SLAs are contractual agreements defining the level of service the 3PL provider will deliver. You should look for a provider with SLAs that meet your business needs, such as on-time delivery, order accuracy, and inventory accuracy.
5. Cost: The cost of using a 3PL provider is an essential factor in evaluating their services. You should consider the provider’s pricing structure, including hidden charges or fees, to ensure that it aligns with your budget and provides value.

If you would like to discuss this further, don’t hesitate to contact your local NNR Account Manager or contact me at tcurran@nnrusa.com.