Finding The Right 3PL Partner

Do you know the most crucial presentation of your brand is the delivery of your product to your customers?  It is a direct reflection of all your branding and marketing efforts.  If your product falls short of your customer’s expectations, the results are returned product and potential social media backlash.  Be sure that your brand message carries through until it reaches your customer’s hands.  For examples, if you are a prestige brand promoting the utmost in quality and performance and the customer receives the product in a box that has been visibly mishandled and the product is damaged, the customer will blame you for the damages, not the shipping company.  Alternatively, if your brand promotes sustainability, and the shipment arrives in a large box with a significant amount of filler (recyclable or not), it does not support your efforts to save the planet.   Do you require “White Glove” for your high-end giftable presentation of your products? 

When it comes to this last part of the supply chain, a company should not skimp as it is the face of your brand showing up on your consumer’s doorstep.  It does not mean, however, a need to spend a substantial amount of resources.  Rather you should find packaging and fulfillment partners who have extensive experience in presenting options that prominently represent your brand without breaking the bank.  As a brand owner, it is your responsibility to determine your customer experience and what you are willing to invest for the experience.  Of course, there will need to be concessions on either side of this spectrum; but working with professionals can help you make the best decision.   It is wise to start your search with a 3PL fulfillment provider since they have connections with many packaging suppliers.    If you are new to utilizing 3PL partners, it is important that you vet each provider to see if they are a good fit.  Below we have outlined some key discovery questions to assist you in the process.

  • What is the size of their core customer?  This is important to understand for you if you are an emerging brand.  In some instances, if a 3PL provider works with larger volumes, you may not get the attention since your business will be small initially.  It doesn’t mean that your orders will not be efficiently managed.  However, communication may not be as timely as you require during the critical growth period.  If you seek out smaller 3PL’s, they may not have proper systems to provide you with proactive and accurate much needed data.  

  • What markets do they serve?  If a 3PL focuses on industrial products, and you are positioned as a high-end consumer brand, this may not be the right space for your product.  Additionally, if the provider does not have experience in your industry, they might not understand the intricacies in preparing your product for shipping. 

  • What is their distribution channel expertise?  Do they ship both D2C and B2B?  If B2B, ask them what retailers they already ship to?  The reason this is important is that if you decide you want to distribute your product to brick and mortar retail.  All large retailers have in-depth shipping guidelines that must be followed to avoid costly chargebacks.  

  • What is their fulfillment and shipping turnaround time for D2C and B2B?

  • What are their fees?  Most likely, they will ask you some questions.  How many pallets you will be storing and your monthly shipping volume expectations?  If you are new, the latter question is not something you will most likely be prepared to answer.  Alternatively, ask them for standard pricing knowing that your prices will be adjusted based on your volume. 

The initial conversation is pivotal to selecting the right partner.   Ask them first to tell them about their company.   Do you feel like you are getting rehearsed lines or a sense of genuine sincerity?  As you understand the importance of connecting with your customers, you should also seek a vendor connection.  Do you feel that the company has your back and will convey your messaging to your customers through their performance and delivery?

Are you a company requiring “White Glove” services? If so, ask the potential vendor of the types of brands they currently serve and ask of examples of their work with other customers.  Lem them know they can blur  or black out the brand name. This request reflects how they execute and pride they take in ensuring every detail exceeds your expectations. If you are serving this type of clientele, the presentation of the delivery to your customer must be top notch. 

We cannot stress how important it is to take the time to do your research and interview a few vendors.  The cost of opening an account with and vendor and subsequently moving out of this vendor due to lack of performance is a costly endeavor.  Not to speak of the damage that can occur in your relationship with your customers.

 

 

 

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Addressing the Manufacturing Dilemma

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3PL Services Defined