3 Reasons whyy 3PL third party logistics may not be the best options for your business

With so many different third party logistics providers out there, it can be very enticing for business owners to want to get in on the action and work with one of them. And although the idea of having lower costs and less responsibilities when it comes to the processes that are a part of logistics of a business, there are a lot of things that you need to know when it comes to working with these providers that you probably haven’t heard a lot about. Today we are going to be taking a look at some of the downsides to 3PL third party logistics providers and talking about why they are not always the best option, so make sure you keep reading.

There are a lot of hidden responsibilities

As is the case with most things out there, not everything is written at the back of the box, and once you start using something or working with something you realize that there are some things about it you wish you knew beforehand, and the same is the case with 3PL providers. For example, let’s say that a customer is waiting for one of your products and it is late. Who will they turn to in that case? The very simple answer to that is you. FedEx or UPS aren’t the one working with your customers, you are, and that means that every mistake that the provider makes will be on you to fix. So if you though that there will be no responsibilities for you, then now is your time to reconsider.

The set up can cost you a lot of money

One of the best selling point of any 3PL third party logistics provider is the fact that they cost you less money than doing all of the work it takes to establish your own warehouse, and while there is definitely truth to that, it isn’t the entire truth. However, something that these third party logistics providers don’t advertise is the fact that there are some pretty steep upfront companies, and this is the case for most of the providers out there. These costs cover things like the integration of the software to your own ecommerce store, access to the account as well as SKU upload, however they are, as we already mentioned, steep. This process can be so expensive, in fact, that a lot of the time they take up a pretty large investment on the part of the business owner, and since this may not be something that every business owner can afford to do, you need to really consider if you are in the position to do so.

Things are out of your hands

If you are someone that really wants to have control over every single thing that happens in your business, then a 3PL provider may not be the ideal choice. When business owners are thinking of getting their own warehouse, the best advice they can get is to place the warehouse as close as possible to them. However, these companies are scattered all over the world, and you may just end up working with one that will keep your products thousands of miles away. This makes it impossible for you to reach your products in a quick manner and if you happen to have some quality control issues, this could put your entire sales process to a halt. As you can see, there is more to 3PL third party logistics providers than just saving money and making things easier for yourself and your business, and the things that we spoke about above are definitely things that you need to seriously consider. We hope you enjoyed reading this article and that you are going to think had before deciding to work with a 3PL provider for your own business.


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