selecting a third party logistics provider part 2: the top 10 questions to ask
TRANSCRIPT
Q3: How large is the facility/ how much space is currently available?
* Verify they will have enough space during busy/ holiday seasons
Q4: What are the hours of operation?
What to ask potential 3PL service providers:
• Typical daily output during given business hours
• Maximum daily output at full capacity
• Productivity statistics
Q5: What type of products are typically stored in this facility?
Also ask your potential 3PL:
• Do they store similar products?
• What are their mixing rules?
• Have they worked with your
current customers?
Q6: What are the facility’s technology capabilities?
Does this facility have:
• RF
• EDI
• RFID
• Warehouse Management Software (WMS)
• Shipment Manifesting/ Routing Software
• Customizable Reporting
• Customizable Compliance Documents
• Conveyor System
• Integrated Scale
Q7: What services can they provide including value-add services?
Ensure your needs are met and all required services are available
• Kitting/Assembly
• Food Processing
• Custom Packaging
• Tempering
• Sampling
• Etc.
Q8: What security precautions are taken?
This is especially important for high value inventory
• Security cameras
• Armed and/or unarmed guards
• Information security protocols
Q9: Can they meet compliance requirements?
Each industry/ inventory type has a separate set of compliance
standards. Can the facility meet these compliance requirements?
• USDA/FDA/CFIA/EU and/or other governmental standards
• IARW
• LBMA Good Delivery
• HAZMAT
Q10: How is the pricing structure designed?
Each third party logistics provider has its own pricing strategy. This
can significantly affect the overall cost of doing business with them.
Negotiate an agreement that is mutually beneficial.