Knowing how to choose a 3PL provider is a critical decision for any growing business. A third-party logistics service provider plays a direct role in your supply chain performance, customer satisfaction, and long-term scalability. After the coronavirus pandemic disrupted global supply chains, companies began prioritizing resilience, technology, automation, and dependable logistics partnerships more than ever before.
When you choose the wrong provider, the consequences can be costly—missed deliveries, poor visibility, lost revenue, and damaged brand reputation. When you choose the right one, your 3PL becomes a strategic partner that supports growth and operational efficiency. If you’re evaluating how to pick a 3PL service provider, these ten essential factors will help you identify what makes the best 3PL for your business.
1. The 3PL Provider’s Capabilities
One of the most important steps in learning how to choose a third-party logistics service provider is understanding whether their capabilities align with your specific needs. Not all 3PLs are built the same. A provider may excel in one service area but fall short in another that’s critical to your operation.
Look beyond your immediate requirements and consider future scalability. For example, electronic data interchange (EDI) may not be essential today—but will it be in 12–24 months? Switching providers later can mean redoing integrations, onboarding, and workflows.
Ask deeper operational questions:
- Are your truckload lanes consistent, with limited origins and destinations?
- Do shipments require time-sensitive delivery or drop trailers?
- Are lanes sporadic with multiple origins and receivers?
- Do you need both asset-based trucking and third-party brokerage services?
If a provider claims to do everything, but you only need a few core services, proceed carefully. Often, what makes the best 3PL is not breadth alone—but depth of expertise in the services that matter most to you.
Related: The Importance Of Third-Party Logistics Services And What They Include
2. The 3PL’s Focus on Customer Satisfaction
When evaluating how to pick a 3PL service provider, customer service should never be overlooked. Responsiveness, communication, and problem-solving ability directly impact your daily operations.
Most providers claim excellent customer service—but proof matters. Ask for references from companies similar to yours in size, industry, or shipping profile. Consistently strong service is usually the result of documented processes and experienced teams.
Strong customer service often goes hand in hand with safety and operational discipline. A 3PL that prioritizes safety, training, and accountability is more likely to deliver dependable service over time.
3. Commitment to Technology
Technology is a defining factor in how to choose a 3PL provider in today’s logistics environment. The right technology should simplify your workflows—not complicate them.
3 Key questions to ask:
- How does the 3PL integrate with your existing systems or eCommerce platform?
- Can their technology scale as your order volume grows?
- How is your data used to improve visibility and decision-making?
A strong 3PL should offer a cloud-based warehouse management system (WMS), EDI capabilities, real-time order tracking, inventory visibility, and returns management. The best 3PL providers invest continuously in technology so you don’t have to worry about outgrowing your logistics infrastructure.
4. Safety Record
Safety is a non-negotiable factor when choosing a third-party logistics service provider. Regulations change frequently, and compliance failures can expose your business to unnecessary risk.
Review publicly available safety ratings and performance data. A strong safety record is often a reflection of disciplined operations, employee training, and consistent execution—all indicators of a reliable logistics partner.
5. Adaptability and Customization
No two businesses operate the same way. One of the clearest signs of what makes the best 3PL is flexibility. Your provider should tailor solutions to your current needs while remaining adaptable as your business evolves.
Whether you’re adding SKUs, entering new markets, or scaling order volume, the right 3PL partner will adjust services, capacity, and processes to support your growth rather than limit it.
6. Company Stability
Company longevity and financial stability matter when deciding how to choose a 3PL provider. Stable providers deliver consistent service, even during economic uncertainty or market disruptions.
Ask:
- How long has the company been in business?
- Do they have a track record of navigating industry change?
- Can they withstand high-liability events without shifting risk to shippers?
A provider with decades of experience and a strong reputation is more likely to be a dependable long-term partner.
7. Company Reputation
At some point, every logistics relationship is tested. When that happens, a provider’s character and leadership become evident.
Research:
- How they treat employees and suppliers
- Their involvement in the community
- Online reviews and industry feedback
- Consistent messaging in their marketing and communications
A strong reputation is a reliable indicator of how the provider will perform when challenges arise.
Bonus Tip: Be cautious if pricing is significantly below market rates. Low cost often hides service gaps, operational shortcuts, or long-term inefficiencies. The best 3PL is the one that delivers the lowest total cost over time—not just the cheapest rate.
8. Inventory Management
Effective inventory management is essential to business growth. A quality 3PL offers an integrated WMS that provides real-time inventory visibility, automated reordering, and accurate tracking across all locations.
Advanced inventory and load tracking tools reduce stockouts, improve fulfillment speed, and allow you to address issues proactively instead of reactively.
9. E-commerce Product Fulfillment
For eCommerce brands, fulfillment performance can make or break customer loyalty. When learning how to choose a third-party logistics service provider, ensure they have proven eCommerce fulfillment experience.
Look for:
- Pre-built integrations with shopping carts, marketplaces, and ERP systems
- Fast, accurate order processing
- A fulfillment team that treats your customers like their own
Reliable fulfillment leads to positive reviews, repeat customers, and sustained growth.
10. Location & Network Coverage
Are you limiting your business’ potential by only operating out of one region? The right third-party logistics companies have access to many locations through an expansive network of fulfillment centers. The ability to tap into a network of fulfillment centers and distribution warehouses in major cities allows you to reduce the cost of shipping and significantly trim the transit time for orders. A 3PL can provide nationwide coverage and a range of logistics services to expand your business’s reach.
Find a BR Williams location near you:
- Oxford, AL
- Mobile, AL
- Piedmont, AL
- Eastaboga, AL
- Anniston, AL (West)
- Anniston, AL (East)
- Tallahassee, FL
- Atlanta, GA
Choosing the Best 3PL Logistics Service Provider
Selecting the ideal third-party logistics provider can feel overwhelming, but it doesn’t have to be. Backed by decades of experience delivering logistics solutions across the U.S. since 1958, our 3PL services are designed with critical factors in mind to ensure efficiency and reliability. When managing storage, handling, or customer order deliveries becomes too much to handle, our expert logistics team is here to help your business thrive. Let’s connect today to explore your options!