February - 20208 logisticstechoutlook.comThe eCommerce boom has brought third-party logistics providers, or 3PLs, into the spotlight in recent years, and for good reason. For many companies venturing into this arena for the first time, self-performing fulfillment can be intimidating, expensive, and time-consuming. In contrast, a professional 3PL fulfillment company can likely do the work faster, cheaper, safer, and overall, better. Whether a company is considering outsourcing its operations for the first time, evaluating its current 3PL's performance, or considering severing an existing outsourcing agreement, it faces many challenging decisions­decisions that can have a dramatic effect on the success of the business. Therefore, it is critical to examine each of the three phases of engaging with a 3PL separately and review the circumstances before recommending a best response.Situation #1 ­Considering 3PL Outsourcing for the First TimeOutsourcing fulfillment may pique a company's interest for any number of reasons. For some, it may be as simple as outgrowing the ability to perform fulfillment on their own. They may be starting a new business or division, expanding to a new market, or introducing a new product line. Whatever be the reason, before making a final decision to outsource, the company must understand what is driving the desire for change.And this change can be difficult for a novice that is reluctant to give up control of some of their business. Many companies are pushed to outsourcing as a last resort because they believe they can By Rich Hamilton, Managing Director & 3PL Advisory Group Leader, Cushman & Wakefield [NYSE: CWK]The Three Phases of Engaging With a 3PLIn My OPINIONTaking the time to fully assess your company's individual circumstances and using outside professional resources­where necessary­to provide objective, comparative insights will allow companies to arrive at conclusions that are profitable and tailored to meet their specific needs
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