Logistics outsourcing and dating—what could they possibly have in common?
More than you might think!
In the video below, I’ll share why I think the two are surprisingly similar.
You might be shocked by the parallels!
Logistics Outsourcing: Finding the Perfect 3PL Partner
Outsourcing your logistics is a lot like dating. You’re not just hiring a service provider—you’re searching for a long-term partner who aligns with your needs and values. After decades of helping businesses through this process, I’ve seen what works and what doesn’t. Here are some straightforward tips to help you secure the right 3PL partner.
Don’t Be Too Demanding
Neediness doesn’t work in relationships or business. While it’s critical to set clear expectations—especially if your products require specific handling, like pharmaceuticals or dangerous goods—it’s equally important to avoid being overly controlling. Some clients overburden their 3PLs with excessive reporting, constant check-ins, or unnecessary demands. This behavior can strain the partnership and even discourage a provider from working with you. Instead, focus on building a collaborative relationship. Once the groundwork is laid, give your 3PL the space to do what they do best.
Provide Accurate and Transparent Data
Good data is the foundation of successful outsourcing. You need to have complete, accurate information about your products, such as their dimensions, weights, and handling requirements. Your demand history and inventory patterns are equally important, as are delivery details like customer locations, frequencies, and return rates. The more precise and transparent your data, the easier it is for a 3PL to understand your needs and prepare an accurate proposal. Holding back details, such as high return rates, only causes problems down the line. When the truth inevitably comes out, it can damage trust and impact the relationship.
Make Sure Your Contract Size Fits the Market
The size of your logistics contract will determine which 3PLs are interested. Larger providers may not consider contracts under $5 million, which means smaller businesses need to focus on second- or third-tier providers. If your contract is particularly small—around $200,000—you may need to rethink outsourcing altogether, as your pool of potential partners will be very limited. In such cases, managing logistics in-house might actually be a better option.
Focus on the Long Term
Outsourcing isn’t about a quick fix. The goal is to find a partner who can support your business for years to come. If you make the right choice, the relationship can last a decade or more with annual reviews to keep things running smoothly.
To succeed with logistics outsourcing, focus on being an appealing and collaborative partner. Get your data in order, manage your expectations, and take the time to find the right fit. A well-chosen 3PL can become a valuable part of your business for the long haul.
Related articles on this topic have appeared throughout our website, check them out:
- 6 Quick Tips for Successful Logistics Outsourcing
- Getting Aligned with Business Goals for Successful Logistics Outsourcing
- Logistics Outsourcing Secrets: A Serial Guide to Success with 3PLs
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated April 26, 2023, under the title “Logistics Outsourcing is Like Dating“.
