Logistics Companies in Canada: 5 Tips on Working With 3PL Services

Tip 1: Make Sure That You Are Ready to Outsource

As your business grows, you may find it challenging to manage your logistics operations. If you aren’t sure whether you should outsource a third-party service, you want to look for these indicators:

1. You’re Investing in Additional Staff

If you are investing in freight forwarders, truck drivers, technology, and extra warehouse storage, you may want to turn to a 3PL service as they can help you save costs. Depending on the volume you handle, you might also be considering upgrading your warehouse size.

The difference between a storage and a warehouse is that, even though you have less control over inventory management, you will have more time to focus on your priorities.

Spending additional resources on managing your warehouse can take away from growing your business. A reliable logistics provider can take that burden off you, and can give you the best rates for your needs.

Related: What Is Retail Fulfillment? And What Can a Supply Chain & Logistics Firm Do to Help?

2. You See an Increase in Paperwork

Managing documents can take a lot of your valuable time if you’re handling it by yourself. A good 3PL service can take care of this part for you.

3. Your Business is Growing

If your business is growing and picking up additional business, your logistics operations will need to be adjusted to account for the increase in volume. A transport company can serve you on difference service levels (depending on your needs) and offer you the best solutions to help maintain the growth of your business.

If you want to outsource to logistics companies in Ontario, are looking for international shipping or Canadian transportation for your good, the MacMillan Supply Chain Group is here to help. You can reach us by phone at 416-941-2759 or via email here.We offer a wide range of warehousing, distribution and transportation solutions, including ocean and air freight.

Tip 2: Do Thorough Research

Before working with a shipping logistics company in Canada, you should ask the right questions to ensure they are a good fit for your business. Whether you want a 3PL for cosmetics or consumer electronic fulfillment, take the time you need to go over their company profile and ask them about their previous experiences with businesses similar to yours.

Tip 3: Understand What Your Business Needs

Make a list of what your business needs. Perhaps you want a reliable transportation services or are looking for comprehensive solutions in warehousing, distribution, and e-commerce fulfillment. Go over all your requirements and relay that information with the 3PL provider you’re looking to contact.

Tip 4: Ensure the 3PL Company Uses the Latest Technology

If your goal is customer satisfaction, you should ensure that the 3PL company makes data-driven decisions to manage the order fulfillment processes. Having the right software solution in place can increase efficiency and help you cut supply chain costs.

This paper by the International Journal of Production Research shows how proper technology can benefit your business:

“It is found that companies that attempt to improve their information technology systems without the proper alignment of information technology with the company’s overall strategy can achieve information technology advantages relative to their competitors, but not competitive advantages or improved financial performance.” [efn_note]F. Lai, X. Zhao & Q. Wang (2007) Taxonomy of information technology strategy and its impact on the performance of third-party logistics (3PL) in China, International Journal of Production Research, 45:10, 2195-2218, DOI: 10.1080/00207540600693531[/efn_note]

Tip 5: Keep Your 3PL Service in the Loop

Always make sure that you and your 3PL service provider are on the same page. Good communication leads to improved results and prevents errors. A good 3PL provider will make sure that you receive frequent updates.

Working with a Logistics Company in Canada

If you’re looking for 3PL provider, feel free to reach out to the MacMillan Supply Chain Group. We offer complete shipping solutions and services for logistics in Greater Toronto Area. With customer service as our priority, we ship goods internationally, including all of North America. Our experts can answer your questions and introduce you to our services that can help your business grow.

Frequently Asked Questions

1. What possible problems can companies encounter in managing their logistics?

Some challenges that companies can face include a lack of coordination, poor communication, and warehouse management errors (misplacement of consumer products). To overcome these issues, companies can use appropriate technology and software to make data-driven decisions for their logistics operations and supply chain management.

2. How to start a logistics company in Canada?

There are many factors to consider, but location is one key aspect. A distribution centre needs to be in an area relative to the customers. If you have a lot of business in Brampton, for example, then the Greater Toronto Area would be idea. Make sure that your warehouse for eCommerce is close to ports to cut costs and reduce ocean freights time.

3. Is supply chain logistics and management the same?

No, they are not the same. Logistics is a part of supply chain management that focuses on the movement and storage of products in different supply chains.

Meet the Author:

Kate

Kate Nowak isn't your typical author. With a career that's as diverse as the landscapes she's traversed, Kate embodies the spirit of the Canadian supply chain and transportation industry. Her passion for global trade burns brightly, fueled by firsthand experience across every facet of the logistics world.