Factors to Consider When Choosing a 3PL

May 17, 2018 | Services | 0 comments

Third party logistics involves outsourcing of functions such as transportation, packaging, warehousing and freight forwarding to an outside agency. Third party logistics or 3PL is a huge industry worldwide.  In the U.S. alone, a whopping $750 billion was generated in 2016 by third party logistics. The number is expected to increase by 4.6% between 2016 and 2024.

Globally as well, the 3PL market is expected to be worth $935 billion by 2020. More than 50% of shipping companies are increasing the 3PL usage in 2017. More than 80% of shippers believe there has been improved customer service due to 3PL.

Clearly, 3PL is an important and critical part of the entire supply chain and logistics industry.  Selecting the right 3PL provider is essential to ensure efficient and economical service.

Three factors that matter while choosing 3PL

Here are some factors to consider when choosing the 3PL partner:

Experience: Companies that have been in the industry long enough to know the procedures and challenges thoroughly are the best bet. Choose a company that has at least two to three years of experience in the field. Along with experience, reputation is another important consideration. Negative reviews or faulty practices contribute to a bad reputation. Carrier compliance management system and monitoring of safety ratings are some of the essential factors to consider in a 3PL provider. Besides, it is also important to check what kind of clients the provider has serviced and how many of them are long term clients.

IT Services: With the ever expanding use of technology innovations in logistics, the 3PL partner needs to be up to date with the right solutions. Checking the kind of IT services the 3PL provider provides is crucial. According to the Annual 3PL study, technologies related to transportation management, electronic data interchange and warehouse management are some of the most sought after IT services.

Transparency and flexibility: The most important feature of a successful relationship between shippers and 3PL providers is the transparency and flexibility to adapt to changing demands. Customers demand complete transparency with regard to goods starting from source to end of a supply chain.

The right 3PL provider should also be flexible enough to scale the operations as required. Given the market fluctuations, there could be low or increased demand at times. A 3PL provider who has the required experience and width to handle all kinds of operational requirements is the right choice. Check if the provider has worked with both big and small enterprises before and is able to make constant adjustments to suit your changing shipping needs.

Oceanstar by Seldat has built a favorable reputation as a global transportation logistics and procurement partner over many decades. We provide the advice and supply chain management you need, whether it be for the procurement of products or the transportation of cargo via ocean, air, trucking, or rail. Click here to learn more about our network and contact us if you would be interested in speaking with an Oceanstar representative.

View Part 2 of this blog series here: (Factors to Consider When Choosing a 3PL: Part 2)

 

Global Guidance. Trusted Partnership.



Paul Conolly

Paul leads the Executive Team for the Oceanstar Group. Prior to founding the company, Paul enjoyed a distinguished career with OOCL–both at sea and ashore. At sea, Paul rose through the ranks to become OOCL’s youngest captain at the age of 27. After coming ashore, he held key management positions in both Asia and North America. Paul’s greatest strengths are his industry experience, critical thinking, and his leadership that extends to developing people and building robust teams and partnerships. Paul is a lifelong learner who is actively involved in supporting education. He has served on a number of non-profit Boards in the past, including the Waldorf School of Orange County, and is currently on the Board Of Trustees for the Association Of Waldorf Schools Of North America. Paul is married with two children and is an avid soccer fan.

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James Conolly

James oversees financial planning, manages risk, and evaluates strategic growth opportunities for Oceanstar as well as liaising with existing and potential investors. Prior to joining the company, James worked in banking, most recently with Barclays Investment Bank. During his 18-year banking tenure, James worked across multiple industry sectors, including Transportation and Logistics where his consultative approach to financial risk management has safely steered many companies through turbulent market conditions. James relocated from the UK to Southern California in April 2016 with his wife and two children and has wasted no time in learning to surf.

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Cara Conolly

 

Cara guides the Oceanstar team in the realm of Human Resources, operations, and payroll. Co-founder of the company, she draws from her many years as an educator and her studies in psychology to help develop the potential of each member of the team. Cara’s greatest strengths are her strong business acumen, solution-based orientation, and real connection to people. Cara loves cooking, hiking, traveling, and spending time with family and friends. She is married with two children.

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Irene Lim

Irene Lim spearheads Oceanstar Group’s Sourcing division with responsibility for all aspects of the business including sourcing, trading, import/export, and logistics. Prior to joining Oceanstar, Irene was the Export Sales Manager for ARC Air Logistics. A veteran, with over 30 years of experience in commodity sales, sourcing, and freight forwarding, she brings extensive knowledge, a true sense of urgency, negotiating prowess, and well-established contacts that enable her to execute seemingly impossible deals. Because helping and serving others is her passion, Irene makes herself available to her customers with full dedication. Irene loves to cook, spend time with her three daughters, and unwind with her DVR.

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Logan Moore

Logan manages Oceanstar’s Global transportation division with responsibility for business development, agency alignment, staffing, and regulatory oversight. Most recently, he served as a Director of International Pricing at Suddath Global Logistics. Logan began his 30-year freight forwarding industry tenure as an import documentation runner and warehouse employee. Through his advancement, he has learned every aspect of the business while building steadfast relationships. Logan’s nuanced industry knowledge and exceptional negotiating skills benefit Oceanstar’s partners at every turn. Raised in Chicago with a particular love for the game of baseball, Logan was a long suffering Cubs fan but with the Cubs ending a 108 year drought his loyalty has finally paid off.

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Paul Conolly

Paul leads the Executive Team for the Oceanstar Group. Prior to founding the company, Paul enjoyed a distinguished career with OOCL–both at sea and ashore. At sea, Paul rose through the ranks to become OOCL’s youngest captain at the age of 27. After coming ashore, he held key management positions in both Asia and North America. Paul’s greatest strengths are his industry experience, critical thinking, and his leadership that extends to developing people and building robust teams and partnerships. Paul is a lifelong learner who is actively involved in supporting education. He has served on a number of non-profit Boards in the past, including the Waldorf School of Orange County, and is currently on the Board Of Trustees for the Association Of Waldorf Schools Of North America. Paul is married with two children and is an avid soccer fan.

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