Is finding a 3PL challenging, and do you need help understanding what you should ask a 3PL provider to learn about them? Well, we talked to our industry experts and compiled a list of MUST-ask questions for a 3PL while interviewing a new fulfillment partner.
Read ahead the MUST ask questions to a 3PL and insights below!
15+ Helpful Questions To Ask A 3PL
1. What Are The 3PL’s Capabilities? Do They Only Handle Pick, Pack, And Ship Processes?
You need to understand the full scope of services the 3PL can offer. Based on these answers, you can identify whether the provider can meet your current requirements.
For example, some 3PLs specialize in eCommerce fulfillment, while others are skilled in providing supply chain solutions like labeling, international shipping, and more!
2. What Value-Added Services Are Offered?
When you ask this question, you can explore the value-added services 3PL offers, which help enhance customer service. Moreover, these services help to differentiate your brand in the market.
They may even include these services:
- Gift wrapping
- Subscription box assembly
- Custom packaging
- Returns management
- Marketing inserts
3. Can You Have A Facility Tour (Even Virtually)?
If you can go through their facilities, it gives you insight into how the 3PL’s business operations are conducted and also insights into many factors. They may even include:
- Operations
- Technology
- Overall professionalism
4. How Long Is The Contract, And What Are The Terms?
Identifying how long they can accompany you, whether it is month-to-month contracts, penalties, or early termination clauses, and keeping the terms flexible helps you build an effective relationship with your 3PL. Moreover, ensure that you speak about the terms and conditions in advance.
5. What Is The Process For Scaling Up Or Down In The Contract Agreement?
You must ensure your 3PL is flexible to adjust according to fluctuations and decisions in your business. Here are some examples you can question about:
- Pro-rated fees for temporary increases in storage or processing.
- Contract amendments for adjusting volume commitments.
- Options to move to more oversized or additional warehouses as needed.
6. What Systems And Technology Can The 3PL Incorporate With (Eg. Shopping Carts, Returns, EDI)?
Are modern integrations essential for your business? If so, you can identify how well your 3PL can integrate with your existing systems, like Shopify, Amazon, or ERP tools.
Moreover, it helps you and your 3PL to keep the onboarding process efficient.
7. Do You Provide Real-Time Visibility Into Inventory Levels And Order Status?
Establishing and maintaining transparency helps you manage stock and even forecast demands. Here are some helpful tools you can check whether your 3PL may offer you:
- Inventory dashboards
- Automated alerts
- Order tracking portals
8. What Is Your Approach To Handling Returns?
Handling returns shows how well your 3PL pays attention to customer service. Generally, they should handle returns smoothly and efficiently to win the customer’s trust.
9. What KPIs And Metrics Do You Track, And How Are They Communicated To Clients?
Based on the answer to this question, it helps you understand how well the 3PL measures success and aligns with your goals. Here are some important KPIs to consider:
- Order accuracy rates
- On-time shipping percentages
- Same-day or next-day order fulfillment
10. How Do You Ensure Accurate And Timely Order Fulfillment?
A reliable 3PL will have an excellent answer to these questions. You can also investigate their quality control measures, order verification processes, and error handling.
11. How Is Peak Season Or Sudden Spikes In Order Volume Handled?
“Scalability” is crucial in preparing the 3PL to face fluctuations. For example, there can be high peaks on Black Friday or during the holiday season. Therefore, your 3PL should provide strategic answers to handle the peak season effectively.
12. How Many Locations Do They Have, And Where Are They?
Before partnering with a 3PL, you should be aware of the warehouses they consist of. If they have multiple strategically placed warehouses, it helps reduce shipping times and costs.
Identifying their locations comes with added benefits, including:
- Identify whether the locations fit your customer base.
- Warehouses near major metropolitan areas.
- Locations close to ports or borders.
13. Can You Provide References From Current Clients?
Identifying how well the selected 3PL has worked with other businesses helps you to recognize whether the provider is a green or red flag. Moreover, it enables you to verify whether the claims are true or false.
14. How Many Clients/Businesses Are Currently Served? How Many Have Left Recently, And Why?
This question highlights your 3PLs experience and capacity to manage your business. Here are some essential tips:
- If there are rapid onboarding processes for new clients, it shows scalability.
- Low turnover rates reflect solid relationships and consistent service.
15. Can They Provide Company Financials?
By asking this question, you will identify whether your 3PL partner is financially stable. This helps reduce the risk of problems caused by bankruptcy or downsizing.
16. How Do You Handle Sudden Changes In Volume Or Demand?
Volumes can always change. Therefore, your 3PL should also be able to scale operations to adapt to growth and during off-seasons.
Quick Checklist Of Questions To Ask Your Prospective 3PL Partner
- What are the 3PL’s capabilities? Do they only handle the pick, pack, and ship process?
- How long is the contract? What are the terms?
- What value-added services are offered?
- How many locations are there, and where are they?
- What systems and technology can the 3PL integrate with? Shopping carts, returns, EDI, etc.?
- Can they provide you with company financials? It is essential to know that the 3PL is financially stable.
- Can you contact a few of the 3PLs current clients for references?
- Can you have a facility tour? (even virtually)
- How many clients/businesses are currently served? How many have left recently, and why?
- What KPIs and metrics do they have? For example, do you need same-day processing and shipping? If so, can the 3PL handle your processing needs?
- How do you ensure accurate and timely order fulfillment?
- What is your approach to handling returns?
- Do you provide real-time visibility into inventory levels and order status?
- How is peak season or sudden spikes in order volume handled?
- What performance metrics do you track, and how are they communicated to your clients?
- What is the process for scaling up or down in terms of contract agreement?
Final Thoughts
In conclusion, asking these questions and understanding what to look for in a 3PL helps you understand how well they strategize their business, flexibility, adaptability, and more insight!
Moreover, if you want to find a 3PL partner who will fulfill your checklist, try our 3PL matchmaker NOW! We will help you find the ideal 3PL partner with no hassle.
We hope this guide of questions was helpful for you to find the best 3PL partner in your hunt!
