Cost v service – what’s more important to you when searching for a 3PL?

Cost v service – what’s more important to you when searching for a 3PL?

Cost savings

When being contacted by companies who are seeking a new or alternative third party logistics (3PL) solution, the main objective, we are told, is that the “price is the most important factor”. We do, of course, try our best to find a cost effective solution for the client. However, 9 times out of 10, these companies will be contacting us again within a matter of months, because they have realised that their unrealistic pricing expectations simply means, a detrimental effect in respect of the quality and variety of services they are offered by the selected 3PL.

Of course, there are certain storage facilities that are able to offer “cheap as chips” pallet storage rates and this is great if you are looking for a low-cost, long term storage solution for yourcustomer-service.0822.12 unwanted stock or household furniture. Items that require no movement for months on end and no fulfilment such as pick & pack. However, if your company supplies FMCG , e-commerce products or other retail items and your reputation relies on the standard of the delivered product and the lead time to your customers, should you really compromise when it comes to the service your 3PL provides?

We are not suggesting that the cheap options are all terrible and you should stay clear completely but that you really should think carefully about where your priorities lie in respect of the service you want to receive (on behalf of your customers if nothing else) from a chosen 3PL partner. There are instances where someone does just require a simple pallet overspill storage space for a short time while they reconfigure their own warehouse. They do, of course, want the cheapest storage price. Although there are many occasions, where a fully bespoke supply chain solution is required which includes fulfilment, re-kitting, labelling and distribution. This is where we believe that service should prevail over cost. We simply wish to suggest that you consider several comparisons when weighing up your 3PL needs and do not always opt for the cheap & cheerful if it means having to compromise your well-earned reputation of supplying “top notch” products with a great customer service record.

Whichwarehouse has built up a vast network, over the last 13 years, of professional and experienced warehouse providers and 3PL companies. Providers do vary from offering movement of full pallets throughout the country and internationally through to those that specialise in e-commerce fulfilment with services such as those mentioned earlier, for businesses such as E-Bay & Amazon sellers.

Overall, the storage & logistics industry is a mind field and this is the exact reason why Whichwarehouse was established. Company managers and decision makers do not necessarily have the time to research the most cost-effective 3PL solution, and therefore tend to remain with their existing facility purely due to the lack of time they have. Some companies also think that as their current 3PL provider knows their products that another provider would take too long to become accustomed with the stock. This is certainly not the case – all of the 3PL providers listed within our network offer no-obligation, informal meetings to discuss your requirements, products & services you require. They are then able to offer the best solution for your company. Their customers are not just a number – many offering dedicated account managers, customer service staff and high tech WMS systems which integrate with your online systems to ensure smooth & accurate data transfer and ease of order processing.

If you do not have the time to pursue the different options available to your company, feel free to add us to your contacts and give us a call to discuss the type of service you are looking for. We will then be able to do the leg work for you and collate information from a few different facilities, offering you a comparison to see the standard of service that is available within the market today, via Whichwarehouse.

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