Your business is growing, orders are pouring in, and suddenly your warehouse feels more like a game of Tetris than an organized operation. If this sounds familiar, don’t panic: you’re not alone.
Companies across every industry are finding that managing logistics in-house can quickly become a full-time headache that pulls focus from what really matters—serving customers and growing revenue.
That’s where third-party logistics providers can help.
The right 3PL partner doesn’t just store and ship your products. They become an extension of your team, handling the complex movement of inventory management, order fulfillment, and distribution so you can get back to running your business.
However, not all logistics providers are created equal. Some own their own warehouses and trucks (asset-based), others coordinate everything through partnerships, and many fall somewhere in between.
Choose well, and you’ll streamline operations, cut costs, and satisfy customers with faster deliveries. Choose poorly, and you might find yourself dealing with delayed shipments, frustrated customers, and unexpected fees that eat into your profits.
Below, we’ll break down exactly what to look for in a 3PL provider, so you can make a confident decision that sets your business up for long-term success.
What Is a Third-Party Logistics Provider?
A 3PL is a company that handles some (or all) of your supply chain operations, from warehousing and inventory management to order fulfillment and shipping. Instead of investing in your own warehouses, hiring logistics staff, and managing complex distribution networks, you partner with a company that already has the infrastructure, expertise, and technology in place.
3PL providers come in different flavors:
- Asset-based providers own their warehouses and equipment, giving them more control over operations and often better pricing.
- Non-asset-based providers coordinate services through a network of subcontractors.
- Hybrid models combine both asset based and non asset based strategies.
The services they offer can include:
- Basic warehousing and distribution
- Specialized storage (like cold chain for temperature-sensitive products)
- Transportation and freight management
- Indoor rail services
- Value-added services like kitting, assembly, and custom packaging
Bottom line: if it involves moving, storing, or processing your products, there’s probably a 3PL provider who can handle it.
Why Work With a 3PL Provider?
You didn’t start your business to become a logistics coordinator. You probably had bigger dreams than optimizing warehouse layouts and negotiating shipping rates. That’s exactly why smart business owners partner with 3PL providers.
Here’s what you get when you team up with the right logistics partner:
- Save Money (and Time): Instead of investing hundreds of thousands, even millions of dollars in warehouse space, equipment, and staff, you pay for only what you need. Plus, established 3PL providers often have better shipping rates than you could negotiate on your own.
- Scale Without the Headaches: Growing from 100 orders a month to 10,000? Your 3PL partner can handle the surge without you having to hire new staff, lease bigger facilities, or lose sleep over capacity planning.
- Focus on What You Do Best: When someone else is handling your logistics, you can put your energy back into product development, marketing, and customer service (the things that actually drive revenue).
- Access to Technology and Expertise: Top 3PL providers invest in warehouse management systems, tracking technology, and process optimization that would cost a fortune to implement in-house. You get enterprise-level capabilities without the enterprise-level investment.
7 Factors to Consider When Selecting a 3PL Provider
Now for the important part: how do you actually choose the right partner? Every business has unique needs, but there are 7 factors that separate the logistics leaders from the logistics letdowns. Get these right, and you’ll find a partner who becomes an extension of your team:
- Geographic Coverage and Strategic Location
- Service Capabilities and Specializations
- Technology and Systems Integration
- Credentials and Certifications
- Pricing Models
- Capacity and Scalability
1. Geographic Coverage and Strategic Location
Location, location, location. It’s not just important in real estate—it’s everything in logistics. The closer your 3PL provider is to major highways, airports, and your target markets, the faster (and cheaper) your deliveries will be.
Look for providers strategically positioned near transportation hubs. For example, a facility at the intersection of major interstate highways can reach a massive portion of the population within hours, not days. This translates into lower shipping costs and happier customers who get their orders faster.
Don’t just ask where their facilities are located: ask how those locations benefit your specific customer base and shipping patterns.
For example, when you choose Moran Logistics, you get access to strategic locations that can reach 60% of North America’s population in 8 hours or less. We call it the “Middle of Everywhere.”
2. Service Capabilities and Specializations
Not all 3PL providers are built the same. Some are great at basic warehousing, while others offer specialized services. It’s all about finding a provider that’s a good fit for your product requirements.
Does your business need temperature-controlled storage for food or pharmaceuticals? Look for providers with food and beverage supply chain management as a core service offering. Dealing with bulk materials that arrive by rail? Indoor rail services can protect your products from weather and theft during loading.
The best 3PL partners also offer value-added services like:
- Kitting
- Assembly
- Custom packaging
- Quality control and assurance
These services streamline your entire supply chain and eliminate the need for multiple vendors.
Make sure to ask: What happens if you need a service they don’t currently offer? Top-tier providers will often develop new capabilities to meet their clients’ evolving needs.
3. Technology and Systems Integration
Your logistics provider needs systems that can talk to your existing software, or you’ll spend more time managing data than managing your business.
Look for providers with reliable Warehouse Management Systems (WMS) that offer real-time inventory tracking, automated reporting, and integration with your ERP system. RF scanning and barcode technology should be standard: you want to know exactly where your products are at any given moment.
The best 3PL providers provide customer portals where you can access inventory levels, order status, and performance reports 24/7. You shouldn’t be playing phone tag to get basic information about your own products.
Red flag alert: If a potential provider can’t clearly explain how their systems will integrate with yours (or if they seem resistant to using your preferred software), keep looking. Technology integration issues can turn into costly headaches down the road.
4. Credentials and Certifications
Certifications matter. They’re proof that a 3PL provider meets strict industry standards for safety, quality, and compliance. The right credentials can be the difference between smooth operations and regulatory nightmares.
For food and beverage companies, look for USDA and FDA certifications (plus American Institute of Baking (AIB) compliance). If you’re dealing with international products that are more sensitive and require a higher standard of Quality assurance, BRCGS (British Retail Consortium Global Standards) certification shows they can handle global supply chain requirements of the highest standard.
Other important credentials to verify:
- Proper insurance coverage and bonded status
- Safety certifications and OSHA compliance
- Industry-specific certifications for pharmaceuticals, chemicals, or other regulated products
- Financial stability and strong credit ratings
Ask to see current certificates and compliance documentation. A reputable provider will be proud to share their credentials and explain what each certification means for your business.
5. Pricing Models
Watch out for hidden costs. A lower base rate doesn’t mean much if you’re getting nickeled and dimed on every transaction. Be cautious of 3PLs offering below-market service rates.
Asset-based providers often have an advantage when it comes to cost. Since they own their facilities and equipment, they can offer more predictable pricing and aren’t subject to fluctuating contract rates with third-party vendors.
Smart move: Ask for a detailed breakdown of all potential charges and request examples of monthly invoices from similar clients. The best providers will walk you through their pricing structure fairly.
6. Capacity and Scalability
Your business won’t stay the same size forever (hopefully), so your 3PL provider needs to grow with you. Nothing’s worse than finding the perfect logistics partner only to outgrow them six months later.
Ask these questions:
- How much additional capacity do they have at their current facilities?
- Can they handle seasonal spikes or sudden growth spurts?
- What’s their plan if your business doubles in size?
- Do they have multiple locations or the ability to expand?
The best 3PL providers have built-in flexibility. Some offer build-to-suit capabilities, creating custom facilities designed specifically for your operation. Others have networks of facilities that can absorb growth seamlessly.
Switching 3PL providers mid-growth is expensive and disruptive. Choose a partner who’s excited about growing with you, not one who sees expansion as a problem to solve later.
7. Ownership Structure and Long-Term Commitment
Here’s a question most businesses never think to ask: “Who actually owns your 3PL provider?” The answer might surprise you, and it should definitely influence your decision.
Many logistics companies that appear to be independent operators are actually owned by private equity firms focused on short-term profits over long-term partnerships. When private equity takes control, the priority often shifts from customer service to maximizing returns for investors. That usually means:
- Cost-cutting that impacts service quality
- Pressure to increase prices regardless of market conditions
- Less flexibility when you need customized solutions
- Higher likelihood of being sold again, disrupting your partnership
Family-owned and operated 3PL providers like Moran Logistics take a different approach. We’ve been family-owned for 50 years, and we’re not going anywhere. When you partner with us, you’re working with people who view relationships as long-term investments (not transactions).
Questions to ask potential providers:
- Are you family-owned or owned by private equity? Is your 3PL a publicly traded corporation that may be more inclined to focus on short term profits, rather than long term partnerships?
- How long has the current ownership and management teams been in place at the company?
- What’s your philosophy on long-term vs. short-term growth?
Family-owned 3PLs are becoming increasingly rare in today’s market, but they offer something private equity-backed companies often can’t: genuine commitment to doing whatever it takes for their partners’ success.
Choose a 3PL Provider You Can Trust
Finding the right third-party logistics provider isn’t just about checking boxes, though—it’s about finding a partner who genuinely cares about your business. The best 3PL relationships feel less like vendor contracts and more like strategic partnerships where both sides are invested in long-term growth.
At Moran Logistics, we’ve been helping businesses streamline their supply chains for nearly 50 years with our “Whatever It Takes” approach. We’re family-owned, and that’s not going to change. From our strategically located facilities to our comprehensive certifications and cutting-edge technology, we’re built to handle whatever challenges your business faces.Ready to explore how the right logistics partner can transform your operations? Contact us at (800) 223-1093 or info@moranlogistics.com to discuss your specific needs. Our team is ready to help you find the perfect solution.
