7 expert tips to find the right 3PL provider

Before diving into how to find the right third-party logistics (3PL) provider and choose one that best suits your business needs, it’s important to consider why you might need one in the first place. Ask yourself these five key questions:

• Do I need to free up resources to focus on my core business operations?
  The right 3PL provider can save you time and resources that are better spent on doing what your business does best.

• Do I need to reduce costs associated with warehousing, inventory, and logistics?
  The right 3PL provider can save you money. In-house warehousing, inventory and logistics is a costly process and even more so when trying to race your competition. With the resources already in place, 3PL’s can allow you to steer your spending elsewhere.

• Would I benefit from a 3PL provider that stays ahead of industry trends and technology?
  A good 3PL provider is up-to-date on the latest trends and technology, helping you provide better customer service and a more streamlined and efficient operation.

• Do I need a logistics partner that can adapt to my changing requirements and scale with growth?
  Partnering with a 3PL provider that can customise their service to meet your exact requirements and adjust as you grow, may allow your business to swiftly adapt to market and customer dynamics.

• Would access to an established network of carriers improve my service and costs?
  3PL providers are more likely to have access to a reliable transport (carrier) network, potentially giving you access to a better service and at better rates.

If you answered “yes” to at least two of these questions, it may be time to consider partnering with a 3PL provider to handle your warehousing and distribution needs.

Like almost everything out there, you have a lot of choices when it comes to deciding which 3PL provider to partner with. Before you set out on finding the right 3PL provider, read this quick guide for tips from our team of warehousing experts.

Choosing the right 3PL provider

With so many options available, selecting the right 3PL provider can be overwhelming. At uTenant, we specialise in matching businesses with the right 3PL providers—at no cost to you. Here are our top expert tips to help you find the perfect 3PL partner:

1. 3PL should not be a last-minute backup plan

Whilst 3PL providers can assist with overflow storage in urgent situations, relying on them as a last resort may limit your options. Planning ahead and partnering with a 3PL provider allows you to leverage their full range of services and benefits, ensuring they align with your business goals.

When things don’t go to plan or as forecast, the specialist skills of a 3PL provider can save you a lot of trouble, as they are experts in logistics.

2. Identify their specialisation

Every 3PL provider has unique strengths and areas of expertise. Some specialise in temperature-controlled storage, hazardous goods, or eCommerce fulfilment. Understanding their core competencies helps you choose a provider that aligns with your specific logistics needs.

3. Price vs. value – look beyond the numbers

Whilst cost is important, the lowest price doesn’t always mean the best service. Evaluate a 3PL provider’s carrier network, services offered, safety standards, insurance coverage, and industry reputation. A reliable provider should prioritise quality, compliance, and efficiency.

4. Technology matters

A good 3PL’s operating system should be scalable and sophisticated when it comes to their technology. Also make sure to double check that their technology incorporates with your ERP system.

A modern 3PL provider should offer advanced technology, including:

• Real-time tracking and visibility
• Seamless enterprise resource planning (ERP) and warehouse management system (WMS) integration
• Electronic data interchange (EDI) for smooth communication

Choose a provider that continuously invests in technology to improve efficiency and customer experience, rather than relying on outdated systems. A good 3PL provider will leverage their technology and operations to improve your own business’s customer experience.

5. Plan for future growth

A good business leader looks always to the future, and a good 3PL needs to also do this. Ask them how they plan to scale so that when you grow, your 3PL can grow with you and continue to meet your needs. This means you don’t need to change providers later down the track.

6. Do your research – Reviews and financial stability matter

While it may seem obvious to check online reviews, don’t be afraid to dig a little deeper. Beyond online reviews, take the time to verify a provider’s financial stability and industry reputation. A financially sound 3PL provider is more likely to invest in infrastructure, technology, and staff - ensuring long-term reliability.

By reaching out to their current or past customers, or looking into ASIC company information and publicly available news, you minimise the risk of choosing a 3PL provider that may fail to deliver on their service promise. Historically stable 3PL provider’s will likely have more resources to invest in you and your requirements, and will be more likely to survive unpredictable disruptions.

7. Seek expert guidance

You know your business inside and out, but choosing the right 3PL provider requires logistics expertise. Working with a specialist can streamline the process and ensure a strategic fit.

At uTenant, we provide a free sourcing and matching service to help businesses connect with the ideal 3PL partner. Our deep industry knowledge and extensive network make finding the perfect logistics solution easier than ever.

Finding the right 3PL provider can take your business to the next level

Finding the right 3PL provider is a critical decision that impacts your supply chain efficiency, customer satisfaction, and bottom line. By following these expert tips, you can confidently select a 3PL partner that aligns with your needs and long-term business goals.

Updated: 4 March 2025