How to Choose the Right International 3PL Provider for Your Business

First, if you’re new to logistics, let’s take a closer look at exactly what a 3PL provider does—and how they can add value to your business. 

3PL is an acronym that stands for 3rd–Party Logistics. 

A partnership with the right 3PL can offer a number of benefits for optimizing your international supply chain, saving you both time and money: 

International shipping comes with a whole new set of competencies to master, including global freight routes, customs regulations, and more. You could either 1) train someone internally, 2) hire someone new with international logistics expertise, or 3) partner with a 3PL and immediately benefit from their experience.  

Leveraging a 3PL offers a more flexible, scalable solution than hiring or training. Your business might not be ready to hire a full-time employee, and training can take time. Working with a 3PL offers you an immediate, on-demand solution for the international knowledge you need—no more and no less.  

Partnering with a 3PL also enables you to ramp up your international operations quickly. Rather than investing in additional warehouse space, new equipment, training employees, and creating a fresh set of standard operating procedures, you can simply tap into the existing infrastructure and systems your 3PL has already established.

Should you needs grow, many 3PLs can scale along with you fairly quickly, without the capital investments and training that would be required to scale in-house.

When you start moving shipments internationally, you could start calling around to find carriers—or you could simply partner with a 3PL that already has a set of relationships in place. An experienced international 3PL has already done the legwork of researching, vetting, and selecting trusted global partners. You’ll be able to leverage their intel, saving you a significant amount of time. 

International regulations can make global shipping complex. Navigating import duties, tariffs and taxes, as well as customs regulations—all of which come with paperwork—can be a challenge. An experienced 3PL that has jumped through all these hoops before can help you stay compliant—and keep your shipments moving with ease.

Now that you know the benefits of working with a 3PL to move your international shipments, let’s take a look at how to find the right partner.

All of the above benefits (and more!) are available to you when you choose the right 3PL to assist with your international shipping. But how do you find the right one? Check out these eight qualities during your vetting process to find a partner that’s a great match—one who can add significant value to your business. 

First, look for a 3PL partner that already has experience in the specific area you’re looking to expand into. Just because a 3PL has “international experience” doesn’t mean that they know how to skillfully navigate a freight route like Asia to Puerto Rico, for example.  

Ask for examples, references, and even case studies of projects similar to yours. This way, you’ll be assured of benefiting from their hard-earned experience, rather than being their test case. 

The right technology can give you an edge in logistics by streamlining your processes and offering you valuable insights for further optimization. Look for a 3PL whose technological capabilities can deliver a high level of transparency into your shipments, including real-time tracking and data analytics. Ideally, their systems would integrate with yours, providing a seamless solution that keeps everyone easily updated. (Including your customers!)

If you use inventory management software or a warehouse management system (WMS), ask your 3PL about potential compatibility and reporting.

It’s important to know that your 3PL has a network of trusted partners in the regions you plan to ship to. As we mentioned above, you don’t want to be their test case for auditioning a new partner.  

Additionally, if you’ve got future plans for expansion, look for a 3PL provider with a truly global network. That way, you’ll find a provider who’s ready to support your future, not just your present.  

 Working with a 3PL has its pros and cons. One of the big pros is a 3PL’s ability to scale up and scale down as needed.  

Ask any potential 3PL partners about their capacity for handling fluctuations in your business. That includes foreseeable busy times—peak retail seasons like back to school and the holidays—and unexpected surges in order volume. Their answer will give you a sense of just how well they’ll be able to scale and flex with your needs. 

Managing your transportation costs carefully is key to protecting your margins. As you talk with potential 3PL partners, look at the transparency of their cost structure. How do their fixed prices and their variable pricing components compare with other 3PLs you’re vetting? How easy or difficult will be it for you to do the cost analysis you need to keep your transportation costs and freight bills under control? As you compare 3PLs, evaluate how easy or difficult it will be to monitor the financials of your partnership.

Your 3PL should be well-equipped to navigate the maze of customs and compliance regulations, including documentation, duties and taxes, clearance procedures, and import restrictions.  

It’s also important to investigate how skillfully each 3PL is positioned to respond to problems. When items get held up clearing customs—as they inevitably will—what relationships do they have with customs brokers in the area you’re shipping to? Can they share stories or case studies illustrating how they’ve dealt with issues in the past in your target markets?  

This is an area in which your 3PL can either add significant value—or create significant headaches for you. Look for a 3PL with deep expertise in global customs procedures and paperwork—a partner who can help you navigate this challenging area with greater ease.  

Every 3PL provider works a little differently. It’s important for you to find someone who will add ease to your business. As you interview 3PLs, consider areas such as responsiveness, customer service, how they handle contingency plans for disruptions, and more.

To evaluate your 3PL in this area, create a couple of potential scenarios—such as a missing shipment or a significant shipping delay—and ask about their standard operating procedures for responding. Their response will tell you a lot about whether working with that 3PL will lighten your load—or not.

Finally, does your 3PL demonstrate a professional commitment to reaching the highest levels of industry education and compliance? Ask about the kind of certifications their team members have—and what certifications the company has completed.

These might include individual certifications, such as APICS Certified in Production and Inventory Management (CPIM) and APICS Certified Supply Chain Professional (CSCP) from the Association for Supply Chain Management (ACSM)—or any of the other supply chain and logistics certifications from the top professional organizations such as Institute for Supply Management (ISM) or International Warehouse Logistics Association (IWLA).

Or, they might be organization-wide certifications, such as ISO 9001 from the International Organization for Standardization, which relates to quality management. If you’re moving high-value goods, you may look for organizations with certifications from the Transported Asset Protection Association, such as TAPA FSR (Facility Security Requirements), TSR (Trucking Security Requirements), or PSR (Parking Security Requirements).

We’d also suggest looking at your 3PL’s professional affiliations. Joining a professional organization demonstrates a commitment to the logistics industry, as well as the longevity of their organization. Additionally, joining a professional organization is one way many logistics companies meet trusted global partners who share a commitment to professionalism and excellence.

Some of the logistics industry organizations your 3PL may belong to include:

• The American Trucking Associations (ATA), the largest and most comprehensive national trade association for the trucking industry.

• Council of Supply Chain Management Professionals (CSCMP), the leading global association for supply chain management professionals.

• Cargo Network Services (CNS), a subsidiary of IATA that’s dedicated to the air logistics chain.

• International Association of Movers (IAM), the largest global trade association of the moving and forwarding industry.

• Intermodal Association of North America (IANA), the only organization that represents the combined interests of the intermodal freight transportation industry.

• International Air Transport Association (IATA) supports aviation with global standards for airline safety, security, efficiency, and sustainability.

• Retail Industry Leaders Association (RILA), the trade association for retail leaders.

• Transportation Intermediaries Association (TIA), the premier organization for third-party logistics professionals in North America and abroad.

• WCAworld, the largest logistics network for global freight forwarders.

Although certifications and professional affiliations are by no means an absolute requirement, making an effort in these arenas can make a 3PL stand out against its competitors.