Your Guide to Powerful 3PL Partnerships

Mastering 3PL Partnerships for Supply Chain Success

Following the supply chain interruption during the pandemic, maintaining an efficient (and cost-effective) movement of goods to market has never been more important. Consumer confidence and provider reputations are at stake. Finding and developing a relationship with a third-party logistics (3PL) partner is very desirable to coordinate the movement and storage of products between shippers and receivers. A 3PL provider consolidates the transportation and warehousing of goods, with end-to-end service. 

• Seventy-three percent of shippers that use 3PL partners consider the results a positive experience and appreciate the innovation that improves effectiveness. 
• Eighty-six percent of shippers that use 3PL partners find the service to be cost-effective1

Finding the right 3PL, therefore, is vitally important for a long-term logistics effectiveness. 

Third-Party Logistics Challenges

• Lack of Industry Knowledge. A partner with vast experience in dry good logistics might not be prepared for cold-chain transportation and storage. Refrigeration and deep-freeze standards are important, especially in the logistics of food and produce. 
• Miscommunication. Messages that are unclear, missed, or are sent through inappropriate channels lead to unmet expectations and frustration. Communication methods and expectations need to be a hallmark of a logistics agreement. 
• Poor Customer Service. Several team members will be involved in providing logistics service, on both the shipper side and the 3PL partnership staff. Unless each member of the 3PL partner staff is committed to “getting it right,” it is difficult to meet the goals and outcomes desired by the customer. 

Unlock Supply Chain Efficiency: Building Strong 3PL Relationships

1 Make the Request for Proposal as detailed as possible.

Do not force potential partners to read minds or make assumptions. Some services will be essential:

• • Shipping details, including climate control requirements
  • Inventory management, verifying cargo content at necessary steps
  • Warehousing details, with sufficient climate controls and required storage space
  • Specialized processing and invoicing
  • Technology and software integration with the shipper’s tech, and, of course,
  • Excellent customer service

Without adequate upfront communication, it will be hard to know whether on-time delivery trumps normal cost-cutting measures. Make your requirements clearly understood. 

2 Verify the capabilities of the potential partner.

There is a place for using a startup with a skilled entrepreneur, but maybe not for this project. Since so much is riding on this relationship, ensure that the partner has invested capital into the technology, innovation, and infrastructure to service the need. Are adequate skilled staff available to service the contract?

3 Will the software and technology of the partner mess with your software and tech?

There needs to be a seamless exchange of information, including a transportation management system and a warehouse management system. Will communication be via text, email, or another platform?

4 Create a Service Agreement that will meet your company’s needs.

Make sure the agreement has metrics for inventory accuracy, on-time delivery requirements, and complaint resolution. An agreement should incorporate scheduled reviews for measurable milestones. 

Every stakeholder, from employees to investors, is looking for long-term solutions that sustainably achieve crucial goals to ensure profitability. A third-party logistics partnership should be a part of the sustainability goals. 

Building Your Sustainable Logistics Future

The Art of Effective Logistics: Crafting a Winning 3PL Relationship

In today’s dynamic market, a well-executed supply chain isn’t just an advantage—it’s a necessity for maintaining consumer confidence and protecting your brand’s reputation. As we’ve explored, forging a strong partnership with a 3PL provider can be a cornerstone of this success, offering end-to-end efficiency and significant cost savings. However, the path to a truly effective 3PL relationship lies in proactively addressing potential challenges.

By meticulously detailing your needs in a Request for Proposal, rigorously verifying a partner’s capabilities, ensuring seamless technological integration, and crafting a comprehensive Service Agreement with clear metrics, you’re not just outsourcing logistics; you’re investing in a strategic alliance. This thoughtful approach minimizes miscommunication, avoids customer service pitfalls, and ensures your unique industry demands are met with expertise.

Ultimately, a successful 3PL partnership is more than just moving goods; it’s about building a resilient, adaptable, and sustainable supply chain that supports your company’s long-term profitability and growth.

1 2022 Third-Party Logistics study