Questions to Ask When Choosing a 3PL Provider

21 Jan 2021 Freight Shipping

Choosing the right 3PL provider for your business can make all the difference when it comes to ensuring that your products will reach your customers on time. At C&D Logistics, they understand how important it is to do your research before hiring a third-party logistics provider. That is why they have put together a list of questions to ask when choosing a 3PL provider to help get you started on the right track.

Learn more about choosing the right third-party logistics provider.

1. What Performance Guarantees Do You Offer?

Most 3PL providers offer some sort of guarantee for getting your orders shipped on time. Make sure that the provider you choose is willing to put their guarantee in writing, including information about how quickly your packages will be shipped and what happens if the provider fails to ship them within that timeframe.

2. What Happens if There is an Error?

Before hiring a 3PL provider, it is a good idea to find out what will happen if they make a mistake. A reputable service provider will not charge you for fulfillment or shipping costs related to their mistake and will arrange to ship the correct items at their own expense.

3. Is There a Minimum or Maximum Order Volume Requirement?

Consider looking for a 3PL company that can give you a good idea of the minimum and maximum order amounts it can handle. The ideal third-party logistics provider will be able to grow and shrink with your business needs over time, giving you much more flexibility.

4. What Kind of Contract is Required?

Make sure to ask your 3PL company of choice what kind of contract you will be required to sign and if you will have to make a long-term commitment to work with them. It is also extremely important to read any fine print before signing a contract to ensure that you are completely comfortable with the terms of agreement.

5. What is the Shrinkage Allowance?

The shrinkage allowance is the percentage of your products that can disappear from the warehouse before the company has to reimburse you for the loss. Consider looking for a 3PL company with a low shrinkage allowance or a no-shrinkage guarantee.

If you would like to learn more questions to ask when choosing a 3PL provider, or if you are interested in one of their freight shipping services, please contact C&D Logistics at 604-881-4440 or by filling out a contact form on their website. You can also stay up to date with the latest news by following them on Facebook, Instagram, and YouTube.