How to Select the Best 3PL Warehouse Partner for Your Growing Business?

Selecting the best 3PL warehouse India partner is not just about finding the right storage space. Instead, it is about having a logistic partner or collaborator by your side who can help you with your growing business. Since the supply chain demands are evolving, the expectations of customers for more accurate and speedy services are also increasing. Therefore, your selection of the right warehouse partner can make or break things in terms of operational efficiency. Since India has numerous 3PL warehousing service providers, you must make a wise choice to pick the one that offers flexibility and useful insights with its proactive approach.

To find out how to have the right third-party logistics and warehousing partner, continue reading this post.

A quick introduction to 3PL warehousing and logistics services

As the name suggests, 3PL stands for the third-party company that manages, stores, and transports goods for other businesses. When it comes to 3PL warehouse India, it typically combines the warehousing facilities with transportation to have the full cycle for an e-commerce business to ease their procedures.

Talking about what a third-party warehousing company usually does, the responsibilities include the following:

• Storage: They keep goods organized, safe, and within the required stock.
• Picking and packaging: When required, they pick the products and pack them for delivery.
• Order fulfillment: They ship orders to your targeted customers.
• Handling returns: In case something is returned by the customers, they manage it, along with restocking.
• Inventory management: They track what is going to be out of stock and what is already in stock.

Tips for choosing the right partner for 3PL warehousing services

We all know that not every 3PL warehousing and logistics provider is created equally; you will need to be very careful while choosing, as they can affect your business greatly. Here are some useful tips to find the best one:

Error rates with accuracy

This is one of the most critical factors that you will need to consider while choosing the best warehousing and transportation services in Delhi. You should check how they manage gaps associated with error tracking and accuracy. Keep in mind that even a smaller mistake during inventory handling or transportation can result in unhappy customers and reduced revenue. So, you can look for the following:

• First and foremost, check if the company has an accuracy rate of up to 99% or more in order picking and fulfillment.
• The rate of shrinkage must remain below 1%, ideally. Remember that if this rate is higher than this, it shows poor control of the inventory and a lack of reliability.
• A good company should track its refuse and rates of errors. This shows their commitment and professionalism.

Carrier liability

If you are handling your goods at the 3PL warehouse India, the responsibility shifts to them. Keep in mind that if you have a separate delivery partner, they will not be responsible for the mistakes made by the warehousing partner. Here, carrier liability means the legal credibility, so have the following in mind:

• Missing delivery deadlines.
• Damaged or lost items during transit.
• Not following the safety guidelines while shipping goods.

To deal with these challenges, have the following tips in mind:

• Mention everything in the contract that 3PL will be handling, including shipping and related errors.
• Opt for a partner that offers claims and issue resolution support.
• Go for additional insurance coverage to fill the gaps.

SLA or clear performance standards

With a clear “Service Level Agreement” document, you can have a solid and reliable relationship with the 3PL company. This document outlines what exactly success means for both sides. It typically defines the following:

• Accuracy of orders with on-time deliveries.
• Inventory management and accuracy.
• Response time of customer service.
• Actions and penalties for missed or delayed targets.

Scalability and flexibility

The shift in the supply chain demands a shift in the third-party logistics services, as well. You are suggested to choose a company that can flex easily with seasonal changes, unexpected rerouting, and demand spikes. For this, you can look for the following in your 3PL partner:

• Adjustment in the shipping lanes when required.
• Offer alternate options or have backup plans to deal with unexpected issues.
• Act as a single contact point for all the logistics and related functions.

Closing remarks

While looking for a 3PL warehouse in India, you should see if your chosen option is using technology and tools, such as GPS, AI-based tools for tracking, etc., that are required for growth and development. In case you do not want to juggle excessively, you can have BSA Logistics by your side. It is a prominent provider of warehousing and transportation services in India. They can make everything smooth and easy to support your business and its growth to a great extent. So, visit the official website or call them to acquire important details regarding the services offered.