tends to streamline communication, Haushalter says. That’s particularly helpful during challenges. “If there is a problem, you don’t want to be dialing for names,” he adds. Technology Given the role technology plays in all businesses, strong 3PL contenders need updated and integrated technology across their order management, ful llment, warehousing and inventory management operations. This helps ensure visible and accurate information. 3PLs that can provide shipment level details, such as origin, destination, and line-item charges, and then report that data with insight will be preferred partners. “Data analysis paired with planning is essential today,” Bellamy says. Brewer asks potential logistics partners to walk through their technology platforms. Among other attributes, he looks for track-and-trace solutions that
enable CKR to take action, if necessary, while shipments are still in transit. He also reviews their warehouse management solution and follows an order as it’s processed to identify any inef ciencies. Dashboard options should have a straightforward interface that shows critical data, such as on-time delivery and order accuracy. “You want to know if your plane is ying straight and true or if it’s headed toward the mountain,” Brewer says. Along with the technology itself, it’s important to understand how 3PLs structure their technology operations. “Automation works wonderfully until it doesn’t,” Meetre says. When a critical issue arises and it’s necessary to talk to a person in charge, that needs to happen quickly so the challenge can be resolved. The ease with which the head of IT at VEKA can connect with Sunset’s IT head
was a top reason VEKA partnered with Sunset Transportation, McCall says. Labor Management A company’s ability to keep and maintain a productive workforce boosts its reliability, Borchert says. Prospective clients should ask about the average tenure of 3PLs’ employees, as well as the training programs in place, as these can boost both productivity and retention. Understanding the safety record is also key to assessing a potential partner’s tness. Shippers should also review the 3PL’s recruiting pipeline, Borchert says. Ideally, they’ll have relationships with local vocational and technical schools. Organizations whose operations have seasonal peaks will want to know if the 3PL works with staf ng agencies that can bring in workers to cover these spikes, he adds.
Avoid These Red Flags
An Inability to Tour a Facility
Along with the attributes to look for when engaging a 3PL, shippers need to watch for signs that may reveal a logistics provider that likely isn’t going to be a good t. These include: A Babysitter Mentality A strong logistics partner helps promote growth, rather than simply “babysits your business,” Brewer says. To that end, the 3PL should regularly ask how it can improve its processes, as this will help the shipper enhance its own operations. Integrity can be a relationship builder or killer, Brewer says. For example, it’s worth probing if a logistics provider walks back a promise it made to offer a speci c service. There might be a legitimate misunderstanding, but given the importance of the partnership, A Lack of Integrity and Communication both parties need to be con dent they understand and can trust the other.
Also be wary of logistics providers that appear to shy away from presenting important, but unfavorable information. “Don’t let my customer tell me you screwed up before you do,” Brewer says. An inability to get clear pricing information is another red ag. A mature, sophisticated 3PL should be able to, when given a set of services and a forecasted volume of activity, calculate the expected cost. Poor Customer Retention Long-term customer relationships show a 3PL is providing not just rates, but valuable services, Brown says. Moreover, given the disruption and potential risk inherent when shippers switch 3PLs, strong logistics providers often have relationships that extend for 20 years or even longer, Gilbert says. Shippers will want to investigate if it becomes clear customers stay with a particular provider for only a short time.
Scheduling
a warehouse tour shouldn’t take weeks, Haushalter says. It doesn’t have to be
the day a shipper inquires about it, but a shipper should be able to get in relatively quickly. This cuts the chances they’re tidying up only because a potential client is coming in. Unstable Finances and Insufcient Insurance Partnering with a 3PL that’s not nancially stable can quickly lead to legal challenges. “Next thing you know, all your products are tied up for months or years,” Brewer says. Given the litigious nature of the current business environment, particularly in the United States,
January 2025 • Inbound Logistics 135
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