Questions Every Brand Should Ask Their New 3PL

Choosing a Third-Party Logistics (3PL) provider sets the foundation for your Ecommerce business's growth and customer satisfaction. You need to ask the right questions before signing any agreements. Many brands rush into 3PL partnerships without gathering all the information they need, leading to costly mistakes and operational headaches down the road. Taking time to evaluate potential 3PLs thoroughly helps you find a provider who matches your needs and can scale with your business.

In this article, we'll show you the most important questions to ask potential 3PL partners about their capabilities, technology, and pricing. These questions will help you make a confident decision and build a strong foundation for a successful logistics partnership.

1) How will you support our business goals?

Your 3PL should demonstrate they want to work alongside you as a partner, not just as a service provider. Their answers will reveal if they take a cookie-cutter approach or truly adapt their operations to support your needs.

A good 3PL understands that your success directly impacts their success, so they should ask you questions about your business model and growth plans during these discussions:

What experience do you have with businesses like mine? How do you handle sudden spikes in order volume? What resources will you dedicate to our account? How often will we meet to review performance?

A strong 3PL partner will show interest in your growth plans and explain how their services align with your objectives. They should outline their approach to scaling operations as your business grows and share examples of how they've helped similar companies succeed.

Pay attention to how they describe their onboarding process - this shows how they'll handle the relationship from day one. Look for specific examples and data points in their answers rather than generic responses. A partner invested in your success will have clear processes for communication, problem-solving, and performance improvement.

2) What analytics and business visibility tools do you provide?

You need clear insight into your supply chain operations. Modern 3PLs should offer technology that puts data at your fingertips, not buried in spreadsheets or delayed reports.

Their visibility tools directly impact how well you can manage inventory, track orders, and respond to customer questions. A 3PL's technology stack also shows their commitment to innovation and continuous improvement. Ask these questions about their technology and reporting:

Can I see real-time inventory levels? How do you track order status and shipments? What kinds of performance reports do you provide? How will your system integrate with my existing tools?

The right 3PL will offer robust tracking tools and detailed analytics dashboards. They should explain how you'll access operational data and how their system helps you spot and fix issues quickly. Ask for a demo of their platform to see exactly what information you'll have access to and how easy it is to use.

The best 3PLs provide training for your team and ongoing technical support to help you get the most value from their tools. You should also understand their process for system updates and how they handle any technical issues that arise.

3) Can you break down all your costs?

You need to understand exactly what you'll pay for each service. Many 3PLs have complex pricing models with fees hidden in the fine print. A transparent pricing structure helps you forecast costs accurately and avoid budget surprises.

The way a 3PL presents their pricing often indicates how they'll handle billing questions and disputes down the road. Ask for details about:

Storage fees and how they're calculated Pick and pack costs per order Special handling charges Peak season surcharges Integration and setup fees

A trustworthy 3PL provides clear, detailed pricing with no hidden fees. They should explain their billing structure and help you estimate monthly costs based on your volume. Ask them to walk through sample invoices and explain each line item. Get specifics about how they handle common scenarios like returns processing, kitting work, or rush orders.

Make sure you understand their billing cycles, payment terms, and what happens if you go over estimated volumes. The best 3PLs will help you model different scenarios so you can plan your logistics budget effectively.

How Octup can help

At Octup, we understand how complex it can be to work with a new 3PL. Octup gives you the tools to track these important areas with your 3PL. Our platform shows you real-time operations data, helps you monitor performance, and tracks all your 3PL costs. We make it simple to see if your 3PL delivers on their promises.

Using Octup, you can focus on growing your Ecommerce business while keeping a close eye on your logistics operations. Our platform helps you build a stronger partnership with your 3PL through better communication and transparency.

Interested in giving Octup a try to gain operational insight and grow your brand like never before? Try Octup free for 30 days.