Ever wondered why logistics outsourcing feels a bit like dating?
There are some surprising similarities! Curious to know what they are?
Watch the video below for my take on this comparison!
Outsourcing logistics can feel a lot like dating—you’re looking for a partner that’s not just compatible but also reliable for the long term. After helping businesses navigate logistics outsourcing for 25 years, I’ve seen where companies succeed and where they stumble.
Here are some tips to make sure you find the right 3PL partner and avoid common pitfalls.
Neediness Reduces Your Appeal
In both relationships and logistics outsourcing, neediness isn’t attractive. If you’re overly demanding or micromanaging, it can strain the partnership. While some operational needs—like compliance for pharmaceuticals or dangerous goods—must be strictly enforced, avoid unnecessary demands like excessive reporting or constant oversight.
Instead, aim to be an easy partner to work with. Trust your 3PL to handle operations professionally once expectations are clearly set.
Accurate Data is Key to Success
One of the biggest factors in outsourcing success is providing accurate and comprehensive data. This includes:
- Product information: Dimensions, weights, and handling requirements.
- Demand history: Order trends and inventory profiles.
- Customer details: Delivery locations, frequencies, and return rates.
Good data makes it easier for a 3PL to assess your needs, resource appropriately, and provide accurate cost estimates. Hiding important details—like high return rates—will only create problems later when they inevitably find out. Transparency is essential for building a strong partnership.
Contract Size Matters
The size of your logistics contract will influence the pool of potential 3PL partners. Large 3PLs may not prioritize contracts under $5 million, which means smaller businesses might need to work with second- or third-tier providers.
For very small contracts, consider whether outsourcing is even the best strategy. A $200,000 contract, for example, might attract only a handful of smaller 3PLs, so you’ll need to invest more time in finding the right partner—or evaluate if in-house logistics is a better fit.
Think Long-Term
Outsourcing isn’t just about signing a two- or three-year contract. A strong partnership with the right 3PL can last a decade or more, with annual reviews to keep things on track. The key is to find a partner whose values, capabilities, and processes align with your business needs.
Successful logistics outsourcing starts with preparation. Get your data in order, be a collaborative partner, and approach the process with the long-term in mind. With the right 3PL, you’ll build a partnership that’s as smooth and reliable as a well-matched relationship.
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“.
