NOVEMBER 20239MANUFACTURING TECHNOLOGY INSIGHTS1. Strategically relevant locations The right 3PL partner will have a well-established variety of warehousing and cross-docking facilities within the geographical needs of a business. When deciding where to establish a warehouse, you'll want to take into consideration factors like the customer base and supplier network locations. For example, when engaging in cross-border logistics between the US and Mexico, it would be wise to consider a 3PL company with cross-docking, storage, and consolidation capabilities in locations like Laredo, Texas. From coast to coast and beyond, a 3PL provider should be able to accommodate storage and fulfillment wherever it is needed while always considering expanding warehouse space. Not only will the right 3PL partner already have smoothly running operations at both dedicated and multi-client sites, they will also be willing to open new sites to adhere to business needs. A 3PL partner with a willingness to grow and expand to new areas sets their customers up for success. A logistics provider with the geographic flexibility to be anywhere you need is a 3PL company that deserves deep consideration when choosing the right partner.2. Applying a data centric approach It is a good idea to gather as much data as possible before approaching a 3PL provider about outsourcing any area of a company's supply chain - warehousing is no different. A high value 3PL partner will appreciate this data collection because a 3PL partner who understands the value of well analyzed and centralized data is already keen to not only the current logistical market, but has a strong and vested interest in strengthening supply chains holistically and long term for their customers. After all, bad or inaccurate data is one of the leading causes of mishaps, so collecting accurate data points is important to success, especially when beginning the journey with a 3PL provider.Not only does accurate data help develop the design of a warehouse for all facets of inventory management and order fulfillment, it also allows a 3PL partner to provide an accurate price quote for their services. A good 3PL provider will be upfront about costs and the value that a company will retain through those outsourcing expenses, however it is impossible to provide the right price if the data points do not accurately reflect operations.3. Utilizing modern technologyNo data collection point, piece of information, or any part of operations should be too unique or niche for the right 3PL partner to collect or handle. There should be no area of warehousing or fulfillment activity that should be unobtainable or unfulfilled by the chosen 3PL company. From ambient to cold, frozen, or even humidity sensitive inventory, the right partner will accommodate your specific needs, regardless of where those needs are in your respective supply chain. Working with a 3PL company that utilizes modern, cutting-edge technology offers companies more control, visibility, traceability, and overall business value. If a business decides to keep any part of their logistical processes in-house, they should at least prioritize partnering with a 3PL provider that leverages a strong warehouse management system (WMS) with smooth integration capabilities with legacy systems. 4. Consider size and costOftentimes, 3PLs won't even discuss costs until after completing data analyses for accuracy and overall cost savings. It's important to do your homework and not just settle on the most cost-effective option out there.While any business wants to get the best bang for their buck, it is important to keep in mind that the cheapest option isn't always the best or even the smartest option. Sometimes cheaper is not equivalent to better, and companies can experience additional headaches and additional financial consequences due to incompetencies and lack of customizable options. However, small to mid-sized 3PL companies are nimble enough to care and listen, but still have the strategic network and reach to get the job done. Smaller doesn't necessarily mean less experienced, but it does mean a highly concentrated team of talent that will work with companies to develop customizable options and value-added services, not simply cookie cutter options. For 2023 business goals, make it a resolution to check out 3PLs and the value that they can add for your supply chain. From pick, pack, and ship to the last-mile, shippers are sure to see the cost effectiveness and benefits of outsourcing warehousing and fulfillment needs. When beginning a search for an appropriate 3PL partner, consider evaluating geography, data, technology, and the size of the 3PLs. This year, turn resolutions into successes by outsourcing logistics services to logistical experts. Not only does accurate data help develop the design of a warehouse for all facets of inventory management and order fulfillment, it also allows a 3PL partner to provide an accurate price quote for their services
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