Finding a 3PL Partner Where to Start and What to Include in an RFP

Many retail companies start by managing their own logistics, and partner with a third-party logistics company (3PL) as they grow.

How do you know when it’s time for a 3PL to help you optimize and scale your distribution?

During times of high demand, you typically need more resources to keep things running smoothly.

If your process is regularly overwhelmed, a logistics company can help you adjust to manage high demand and scale back when product movement is light.

If you’re backlogged with returns or new orders

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If something is preventing you from quickly processing inventory

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Even with highly efficient processes in place, many things can slow your operations and drain resources.

• Receiving damaged or mislabeled product from vendors • Influx of returns and new orders• Staffing, resources, and inventory management

A logistics company can help you optimize your process and manage your resources.

If you’re getting ready to scale your business…

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Logistics are different for every business. They change as rapidly as your business changes.

Even with the most complicated systems, a logistics company can apply best practices and the latest technology to optimize your processes so you can grow.

So where do you start?

The RFPA good RFP has two sections –

about your company, and about theirs.

Introducing your company

Start with the basics and list some demographic information about your company. This will give the 3PL an idea of who you are and where you fit into the market – and if they’re best-suited to help you.

• When you were established and why• Ownership information• Your primary markets

Your goals, dreams, and aspirations

Share what you want your company to be tomorrow – including current strengths, weaknesses, and growth areas. What do you want your future to look like? What would make you successful?

• Show your culture and personality• Any persistent problems or issues• Any successful partnerships or strategies

Where a partner fits in

A good 3PL will be able to assess your objectives and explain how well they’re able to contribute. Each 3PL is looking for a successful partnership, just like you are.

• Goals, objectives, and expectations• Clear expectations for the partnership• Timeline and next steps

About the 3PL company

Ask smart questions, and each 3PL will be able to give focused, clear, and efficient answers. This makes it easier for them to give you a clear plan, and easier for you to select your best partner.

Here are 3 tips to do this well.

Allow each 3PL to differentiate themselves from their competition

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Each question in the RFP should be open-ended to reveal exactly what sets one provider apart from another.

• Is it a particular service, a way of doing business, or the size of their company?

• How about the way they treat their customers?• How they would handle the unique situations

you face?

Connect everything to your objectives

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Lay out your objectives in the RFP to give each 3PL the opportunity to assess your situation and determine the best way to meet your objectives.

This will make it easier for them to provide you with a clear plan, and easier for you to differentiate between each company and ultimately select your best partner.

Give away just enough information about your project to get a plan back

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Each logistics company will handle your needs in their own way. Arm them with the information they will need to create a specific plan of execution that meets your expectations.

• Average order profile • Average number of shipments per day, month, and year• Product info and any special shipping info

You’re on your way!

The added expertise by a 3PL company can help make the interactions with your customers as seamless as possible.

Taking logistics responsibilities off your plate will help you focus on growing your business.

Looking for more?

Download our free guide. Guide to Writing an RFP for 3PL Services