What Questions Should You Ask When Vetting a 3PL Partner?

A third-party logistics partner, known as a 3PL partner, supports your business in streamlining and managing your supply chain operations and processes. Choosing one has a significant impact on order fulfillment and overall customer satisfaction. 

The right 3PL provider takes your inventory management to the next level, slashing expenses and minimizing the need for warehouse space. The wrong 3PL partner makes inventory management and fulfillment an inefficient, wasteful process. 

Your 3PL partner must be capable of storing, shipping, and tracking your products, offering scalable options that work for your business’s needs. Additionally, you’ll want to partner with a 3PL that’s easy to work with and responsive to any unforeseen issues. Use the questions in this article when interviewing prospective logistics providers and find the ideal partner for your needs.

Understanding Their Capabilities and Services

There are more than 70,000 3PL providers in the United States alone. Some 3PL companies may have fantastic customer testimonials and a rock-bottom error rate, but they don’t specialize in your business niche. Use these questions to determine what a 3PL is capable of and whether you’re a good fit for one another. 

What Industries or Product Types Do You Specialize In?

From heavy order fulfillment to kitting, 3PLs may specialize in a variety of services. The following are some considerations to make for different types of industries and services.

• E-commerce fulfillment: Fulfilling online orders isn’t just about tossing items in a box. When customers order from your online store, they expect fast delivery, clear tracking updates, and an intact product. A 3PL provider that specializes in e-commerce fulfillment streamlines this process, from picking and packing to real-time inventory updates and system integrations. 
• Amazon FBA prep: Amazon has strict FBA requirements, and if your products don’t meet them, you risk delays, fines, or rejected shipments. A reliable FBA prep service can make sure every unit is inspected, labeled, and prepped for Amazon’s fulfillment centers.
• Apparel fulfillment: This 3PL must manage hundreds of SKUs in different sizes, styles, and colors, all while keeping items clean, folded, and sorted properly. A fulfillment partner with apparel experience can prevent costly mix-ups and speed up delivery. 

Other 3PL specialties may include subscription box fulfillment and cosmetics fulfillment services. 

Do You Offer End-to-End Fulfillment, Including Returns and Kitting?

End-to-end fulfillment covers the entire workflow of completing a customer order and includes the following steps:

1. Processing
2. Inventory management
3. Picking
4. Packing
5. Shipping
6. Return handling

Kitting and returns are the services you need to look for when you need end-to-end fulfillment. 

Kitting, Packaging, and Assembly

Custom product kits and bundles can set your brand apart, but they take time and attention to detail. An experienced fulfillment team can build, package, and ship your products exactly how you envision them, saving you time and improving presentation for your customers. 

Ask the 3PL whether they offer customized packaging solutions and if they can assemble based on your exact specifications. You shouldn’t have to change or alter your brand standards because a 3PL can’t keep up. 

Reverse Logistics

Returns are part of doing business online, but poorly handled returns create delays, customer frustration, and added costs. A strong reverse logistics process means quick barcode scanning, sorting, restocking, and proper handling of returned merchandise.

The logistics aspect of reverse logistics should provide cost-saving opportunities for your business. Ask the 3PL how they help you recover costs and enhance customer satisfaction.

Can Your Systems Integrate With My E-Commerce Platform?

Again, you should not have to change for your 3PL. The right logistics partner can adapt to your existing e-commerce platform. This isn’t just a matter of convenience. The more you can reduce manual data entry, the better you and your 3PL partner can avoid delays and fulfill customer orders faster.

Request a list of platforms they integrate with. Ask about the integration process and what you need to do on your end to integrate. 

If you don’t see your e-commerce platform listed, ask if they support additional specialized platforms. Some 3PLs offer flexible API access and custom integrations as needed.

Technology, Visibility, and Reporting Tools

Logistics companies are frequently turning to more advanced technology to solve long-standing problems. The right 3PL partner uses internal tech and gives your business reporting access so you’re up to date and ahead of the game. 

What Technology Powers Your Warehouse and Logistics Operations?

First, you need to know where the warehouse is. Ideally, their location(s) will provide quick shipping to the majority of your customers. It also needs to be in a stable climate to help minimize the risk of weather-related disruptions impacting your logistics strategy, reducing delays and threats. 

For example, the Relentless Fulfillment warehouse is located in Reno, Nevada, an environmentally stable location near the West Coast shipping sector. 

Second, you need to know what their warehouse processes are. This is called warehouse management, and it involves overseeing all warehouse logistics operations, such as receiving, storing, fulfilling orders, and shipping. 3PL warehouse management aims to lower costs and guarantee timely delivery. This includes processes like:

• Inventory control 
• Material handling 
• Logistics management
• Optimizing warehouse layout and workflows

Ask questions such as: 

• What technology is involved in your warehouse management?
• Is it reliable and up-to-date?
• Is it protected from threat actors (individuals that exploit weaknesses in computer systems with malicious intent)? 

Will I Have Real-Time Access to Order and Inventory Data?

You need to stay connected to your business from anywhere, anytime. 3PLs should provide a client portal that offers secure, real-time visibility into your inventory and order activity. This dashboard needs built-in integrations to leading marketplaces. Inquire whether their reporting technology is:

• Easily downloadable
• Able to be audited
• Able to generate reports on your sales data
• Accessible from any internet-enabled device — mobile included

How Do You Handle Tracking and Issue Resolution?

Mail tracking isn’t the only tracking concern. You need full visibility and tracking across your entire fulfillment operations. Ask the third-party logistics provider whether they offer:  

• Lot tracking: This is the process of monitoring specific batches of products as they move through the supply chain. It involves tracking key details such as location, manufacturing date, receiving date, and other vital information to ensure traceability.
• Inventory tracking: This involves monitoring the movement of goods from purchase to sale to make sure the right products are available in the right quantities when needed. It includes recording, analyzing, and managing inventory levels and transactions.
• Shipping tracking: This is the process of labeling and tracking packages from the warehouse to customers. Your business, the 3PL, and the customer should have access to accurate tracking information. 

Scalability and Customization Options

Those who do not grow fall behind. Your business must be able to scale efficiently, taking advantage of new opportunities. In order to do this successfully, your entire business model must be built with a growth mindset, starting with your 3PL partner. 

Can You Scale During Peak Seasons or Business Growth?

You need to know what systems are in place to scale during peak seasons. Ask the following:

• How does your Advanced Inventory Management Systems and Enterprise Resource Planning software manage peaks?
• Do you offer demand forecasting? 
• What is your accuracy rate?
• Do your rates change during peak seasons? 

Are There Customizable Options for Packaging, Branding, or SLAs?

3PLs should offer a range of customizable options to support your brand identity and meet your fulfillment standards. Packaging customization may include branded inserts such as promotional materials, thank-you notes, and personalized messages. Many 3PLs also provide branded packaging. Think items like tissue paper with your logo and custom box designs made with your product dimensions.

In terms of Service Level Agreements (SLAs), a reliable 3PL maintains strict and consistent service-level agreements, regardless of peak season. Industry-leading benchmarks include:

• B2C orders fulfilled within 24 hours
• B2B orders fulfilled within 48 hours
• Dock-to-stock within 48 hours
• Returns processed within 48 hours

Additionally, account managers should respond within a one-hour window, supported by internal tracking systems, to ensure responsive and dependable communication. Check and learn which of these standards your prospective 3PL follows. 

How Do You Handle Sudden Spikes in Demand?

You can’t predict all spikes in demand. Sometimes, customer purchasing decisions really are random and uncontrollable. Your business must be in the best possible position to deliver in the face of unexpected popularity. 

Ask the 3PL how they plan to handle sudden spikes in demand and how they’ve successfully managed in the past. 

Pricing Transparency and Contract Terms

You need to know what you’re paying for and when. 

What Are Your Storage, Pick and Pack, and Shipping Fee Structures?

3PLs can usually reduce shipping costs due to volume-based carrier relationships. Because of this, competitive 3PLs typically offer:

• Volume-based carrier discounts (e.g., 15% savings)
• Cubic pricing optimization (e.g., 6% additional savings)
• Access to premium carriers such as DHL, USPS, UPS, FedEx, and Amazon
• Top-performing 3PLs also provide free shipping analysis to help businesses uncover cost-saving opportunities and tailor fulfillment strategies to their needs.

Are There Setup Fees or Long-Term Contract Requirements?

You don’t want to get locked into an unexpected long-term contract. Ask the 3PL whether they offer flexible agreements with no minimum volume requirements, giving you the freedom to grow without rigid terms. 

Check also for setup fees. They aren’t uncommon, but should be manageable and explained up-front. 

What Happens if I Want to Exit the Partnership?

Not every 3PL partnership lasts forever, and you need to know there’s a plan B. 3PLs should make offboarding simple and straightforward. A professional 3PL will have clear offboarding procedures in place to ensure business continuity and the smooth transition of inventory and data.

Support and Communication Standards

Without effective communication, your fulfillment process will suffer. Ask prospective 3PLs about their communication and support processes.   

Will I Have a Dedicated Account Manager or Point of Contact?

A dedicated account manager will help monitor inventory, reduce stock-outs, and optimize inventory levels. This point of contact helps you with your customer service when issues arise. This individual should be familiar with your account and reachable via email or phone at a minimum. 

Double-check that your POC isn’t based overseas, as this can cause communication challenges. It helps to have a standard for proactive communication, as well. Determine whether the 3PL requires account managers to host regular check-ins and updates. 

What’s Your SLA for Resolving Operational Issues?

Managing a fulfillment center and operations is not a simple matter. Issues do come up, and you need to know they’ll be handled appropriately and swiftly. Ask the 3PL whether they have a standard SLA regarding the most common challenges, which may include:

• Inventory mismatches 
• Labor shortages
• Environmental issues

Why Choose Relentless Fulfillment

Relentless Fulfillment is a premier 3PL company specializing in: 

• Direct-to-consumer fulfillment
• Storage
• Crossdocking
• Amazon FBA Prep
• Specialty bundling

We serve a variety of clients, providing a hands-on approach and treating every client’s product and customers as if they were our own. At Relentless Fulfillment, we believe in transparency, with no hidden fees and upfront pricing. 

With us, you get a lower cost per order compared to in-house operations by leveraging advanced automation and a powerful warehouse management system. Partnering with our 3PL services: 

1. Reduces your capital investment 
2. Shifts fixed costs to variable ones 
3. Speeds up delivery times
4. Lowers shipping expenses 

Our scalable solutions are designed to support growth and handle peak volumes with ease. We respond to technical issues ASAP. This minimizes disruptions and keeps your operations running smoothly. Plus, by using our discounted shipping rates, you can boost your revenue and reinvest in your business.

Our less than 0.1% error rate is possible in part because we deploy integrated tech that gives your business real-time data visibility. We use advanced systems connected with a wide range of marketplaces and shopping cart platforms, so you can track fulfillment at every stage. 

Relentless Fulfillment’s dedicated support team is on standby to guide your growth. 

Partner With Your Ideal 3PL Provider

Your 3PL provider is one of your most important partnerships, so it’s well worth taking the time to evaluate your options. At Relentless Fulfillment, we’re proud to serve as a seamless extension of your business. With quick SLAs, dedicated support, and complete data transparency, we empower you to scale confidently, whether you’re fulfilling DTC, B2B, or FBA orders.Ready to streamline your logistics? Reach out today for a custom fulfillment quote.