Myths About Working With a Third-Party Logistics Company

Acronym showing 3PL as 3rd Party Logistics

There are a lot of misconceptions that business owners have about working with a third-party logistics company. People tend to think it’s all just warehouses and trucks, but they don’t realize how much more goes on behind the scenes. There is worry that bringing on an outside company will complicate their processes, increase costs, and negatively impact customer service.

Here are some of the most common myths about working with a third-party logistics company:

Third-Party Logistics is Just Warehousing and Trucking

There is so much more to third-party logistics than just warehousing and trucking. If you’re looking for an expert to overhaul your warehouse operations, there are plenty of companies that specialize in that area. But if you want a true partner to help with strategy and planning around the full order fulfillment process, then contacting  a third-party logistics company is the solution for you.

The biggest thing I see on a day to day basis is helping companies rethink their supply chain management and logistics strategies to make sure they have the most efficient system possible. This can lead to better warehouse procedures, more strategic partnerships with vendors and customers, optimized truck routes and scheduling, and so much more.

Third-Party Logistics Companies Only Work With Large Corporations

It’s true that most third party logistics companies work with big companies, and some of them even specialize in this area. But that doesn’t mean you won’t be able to find a good fit for your business.

In fact, most 3PLs work with many small businesses as well. The key is to find the right one for you, and many of them are more than happy to work with companies of any size or industry.

Third-Party Logistics Companies Will Significantly Increase My Costs

A common misconception is that a 3PL will increase your costs and expenses.

This simply isn’t true. In fact, many companies find that they actually reduce their operating costs when working with a 3PL! Of course, this will vary depending on the business and its unique needs. Generally speaking, though, you can expect to see an overall decrease in operational cost as opposed to an increase.

My Customers Won’t Like the Idea of Working With a Third-Party Service provider

I’ve also heard that some companies are concerned about their customers getting upset if they start working with a third party logistics company. The truth is that most customers don’t even realize when you’re using a 3PL. Things run that smoothly. There might be an initial period of adjustment while everyone gets used to the new system, but there shouldn’t be any long-term difficulties.

Customer Service Will Suffer if I Start Working With a Third-Party Logistics Company

Lastly, many business owners worry that their customer service will suffer if they start working with a 3PL.

This is nothing to worry about either! As mentioned above, most customers will not even notice the difference when you start using third party logistics services as opposed to your own staff.

In fact, working with the right order fulfillment partner should result in your entire fulfillment and shipping process running faster and more efficiently, which is only going to boost the customer experience.

Most 3PL companies will even handle shipping out reorders, tracking down lost packages, and customer returns for you.

Ready to Get Started?

The bottom line is that if you’re ready to start working with a 3PL, make sure to do your research. Keep an open mind and evaluate each company you’re considering carefully. You’ll be glad you did!

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