10 TIPS: Choosing a 3PL provider

AMG Logistics

Choosing a third-party logistics (3PL) provider is a strategic business decision so handle it that way. Your 3PL should be a stimulus for producing unparalleled retail logistics performance levels and total supply chain optimization.

Choose the right partner with the following tips

  1. Concentrate on One Strategic Region.

Centralized warehousing and inventory control produce economies of scale throughout supply chain operations. By regulating inventory from one inventory location, suppliers avoid redundancies at multiple warehouses, reduce overall operational costs, improve efficiencies, and achieve a more consistent product flow to store shelves.

  1. Entrench Sustainability Across the Chain.

Your 3PL partner should be a stimulus for helping suppliers integrate supply chain best procedures that reduce operational costs, decrease environmental footprints, and produce a greater return on investment.

  1. Invest in Human Capital.

Work with a 3PL that has invested in professionals with functional areas of expertise who own deep categorical and industry knowledge.

  1. Consider Retailer Relationships.

Your 3PL partner should have deep relationships with today’s retailers that provide you with insights to drive seamless integration into retailers’ systems. This access to critical knowledge propels process optimization while developing stronger relationships to increase retail presence and sales.

  1. Leverage Retail Consolidation.

Consumer product goods (CPG) suppliers share truckloads with other customers to form a single, full truckload to the same retailer distribution centre. It’s a simple concept that generates immediate cost savings, decreases carbon footprints, and improves overall supply chain performance. Importantly, it also improves compliance to remove retailer fines while increasing in-stocks and line extensions.

  1. Consider the Advantage of Asset-Owned Providers.

An asset-based 3PL provider owns and operates its trucking fleet, warehouses, and proprietary analytics technologies. Ownership of assets removes middleman costs passed on by 3PLs that outsource their warehousing and trucking. Suppliers gain from improved control, the ability to pivot quickly, and increased supply chain efficiencies.

  1. Analyze Retailer Compliance.

On-time and in-full shipping standards will only continue to rise as more retailers adopt firmer regulations to meet consumer demand. Your 3PL should have a grip on each major retailer’s evolving compliance demands—and the logistics solutions to help you meet them.

  1. Gain from Value-Added Services.

From labelling to repackaging to merchandiser assembly and more, third-party Logistics providers should offer value-added services that reduce overhead costs and turnaround times. This allows suppliers to focus on growing their businesses.

  1. Vet to Make Sure Retail Logistics Are Mastered.

With growing demands and disruptions, put your supply chain in the hands of a retail logistics expert. Conduct due diligence to research, assess, and select a 3PL partner that can grow with your business

  1. Convert Insights into Meaningful Action.

Real-time outlook and access to critical data are essential for improved decision-making and supply chain optimization. Working with a 3PL that offers an advanced analytics platform to improve transparency, control, and real-time insights is critical in today’s business climate.

Be sure to contact AMG Logistics for all your logistics needs.

Share this post:

Share on linkedin
Share on facebook
Share on twitter
Share on pinterest
Share on tumblr

AMG Logistics is a Lagos-based TRACE certified logistics company. Our services include Freight Forwarding, Customs Clearance, Trucking, Distribution, and Warehousing within Nigeria.



Tel: +234 909 199 9866

+234 909 199 9866

+234 909 199 9841

+234 909 199 9805

+234 909 199 9813

AMG Logistics Locations

7c Creek Road

B3 ground floor
84 Keane Nkrumah Street
Asokoro Business & Lifestyle centre

NAMA Admin Building
Port Harcourt International Airport
River State