Who to choose - 3PL or 4PL operator? Tips and recommendations

Choosing a logistics partner is one of the most important components of your business success. Let's say you are the owner of an online shop, but the logistics routine has started to take up a lot of time and you have almost no resource left for business development. You can free up your time by outsourcing your shipping to professionals.

In this article on the Sargona blog, we'll talk about 3PL and 4PL operators - the real experts in the world of logistics. Find out how they can make your job easier and help you achieve your business goals.

3PLs (Third Party Logistics) are companies that provide outsourced logistics services such as:

• Storage;
• Transport;
• Packaging;
• Fulfilment of delivery of orders.

These operators allow businesses to focus on their core tasks and not waste time organising logistics. For example, if you have an online shop, a 3PL can take care of all the processes involved in delivering goods to customers.

4PL (Fourth Party Logistics) is an integrated approach to supply chain management. Such operators coordinate the work of several 3PL suppliers, providing strategic management and optimisation of logistics processes, which is ideal for large companies that do not want to bother with logistics.

Choosing the right logistics provider can be daunting, especially if you're new to the process. Here are a few recommendations to help you decide:

1. Assess your needs:

• For smaller companies, a 3PL is often sufficient, especially if budgets are limited.
• If you plan to scale your business and need comprehensive logistics management, a 4PL will be the best choice as it will take care of all aspects of supply chain management.

2 Pay attention to technology:

• Providers who use modern warehouse management systems (WMS - Warehouse Management System) and transportation management systems (TMS - Transportation Management System) will do a better job of managing your business.

3 Check Reputation:

• Don't take a cat in the bag - research reviews and ratings. Reliable companies always have positive recommendations from customers.

4 Pay attention to cost:

• Compare the pricing structure of different providers. Look for providers with transparent pricing policies to avoid hidden fees.

5 Ensure flexibility and scalability:

• Choose an operator that can adapt to changes in the market and the growth of your business. If you choose an unreliable partner, it can lead to delays, increased costs and poor customer service.

6 Check your customer service levels:

• You should have access to a manager and 24/7 support. This is especially important in case of abnormal situations.