White paper
Three critical components of the specialty 3PL experience
As product profiles evolve and manufacturer consolidations introduce variations within a single client’s product lines, client needs in the third-party logistics (3PL) space are becoming increasingly complex—and more challenging for unprepared partners to meet. As a manufacturer, what should you expect from a specialty logistics provider? A good 3PL provider can distribute your product and provide full order-to-cash services. A great one, however, will help you evaluate your options, select the ideal distribution strategy, tailor its services to your goals, and support your operations with the right technology and infrastructure. With that in mind, here are three critical components you should expect from a top-performing 3PL partner.
Strategic consulting
Whether you are preparing for your first product launch or adding to an established portfolio, you have likely invested years of research and significant resources into your product’s success. When it is time to discuss distribution, the wrong strategy can lead to suboptimal results in the market. To avoid this, you need best practices — not best guesses — to ensure your product reaches the market as effectively as possible.
Your 3PL partner should have the expertise to make informed recommendations on everything from channel strategy to packaging requirements for shipping. You should be confident that your product will be delivered accurately and efficiently to the right downstream customers, especially when dealing with temperature-sensitive or specialty products. This requires your 3PL provider to explore various shipping mechanisms and distribution scenarios to meet your specific needs. .
As the industry seeks innovative ways to deliver medications to patients with greater cost efficiency, your 3PL should offer more than just pick-and-pack services. They should provide solutions that leverage economies of scale to drive efficiency and add value to your operations.
Your 3PL partner should have the expertise to make informed recommendations on everything from channel strategy to packaging requirements for shipping. You should be confident that your product will be delivered accurately and efficiently to the right downstream customers, especially when dealing with temperature-sensitive or specialty products. This requires your 3PL provider to explore various shipping mechanisms and distribution scenarios to meet your specific needs. .
As the industry seeks innovative ways to deliver medications to patients with greater cost efficiency, your 3PL should offer more than just pick-and-pack services. They should provide solutions that leverage economies of scale to drive efficiency and add value to your operations.
“One of the reasons you come to a 3PL provider is for the economies of scale. You should expect your 3PL provider to actually provide you with efficient solutions.”
Albert Cooksey
SVP & General Manager, 3PL Services.
Streamlined service
Different 3PL providers use varying account management models, and it’s important to understand what to expect from the team you’ll work with daily. Beyond strategic consulting, continuity of service is critical.
While some providers assign an implementation manager at the start and later transition the account to a day-to-day manager, others use a pod structure with multiple points of contact across departments. However, there is significant value in working with a dedicated relationship manager who is involved from the implementation phase through ongoing management. This approach ensures that your 3PL team becomes deeply familiar with your product and business, creating consistency and expertise throughout the product’s life cycle. It also facilitates streamlined communication, which is vital when your 3PL partner serves as the face of your business to downstream customers.
Measurable service metrics are another essential consideration. To maximize the return on your logistics investment, evaluate your 3PL provider’s performance in areas such as chargebacks and accounts receivable (AR). Actively managing AR and increasing the percentage of customers who are current on receivables by even a single percent can have a significant impact on your bottom line.
While some providers assign an implementation manager at the start and later transition the account to a day-to-day manager, others use a pod structure with multiple points of contact across departments. However, there is significant value in working with a dedicated relationship manager who is involved from the implementation phase through ongoing management. This approach ensures that your 3PL team becomes deeply familiar with your product and business, creating consistency and expertise throughout the product’s life cycle. It also facilitates streamlined communication, which is vital when your 3PL partner serves as the face of your business to downstream customers.
Measurable service metrics are another essential consideration. To maximize the return on your logistics investment, evaluate your 3PL provider’s performance in areas such as chargebacks and accounts receivable (AR). Actively managing AR and increasing the percentage of customers who are current on receivables by even a single percent can have a significant impact on your bottom line.
ICS customers experience AR at 96% current or higher.
Actionable intelligence
As your business grows — and it will — you will need to provide more stakeholders with visibility into your supply chain operations. From procurement and finance to the vice president of supply chain, everyone requires access to the right information at the right time.
Top-performing 3PL providers understand the importance of visibility and invest in technology that provides real-time information to meet customer needs. You should expect to have instant access to data on sales, orders, and inventory changes as they happen. Since technology is now a baseline expectation for 3PL providers, look for robust reporting capabilities and a partner that delivers actionable intelligence to support your business decisions.
Top-performing 3PL providers understand the importance of visibility and invest in technology that provides real-time information to meet customer needs. You should expect to have instant access to data on sales, orders, and inventory changes as they happen. Since technology is now a baseline expectation for 3PL providers, look for robust reporting capabilities and a partner that delivers actionable intelligence to support your business decisions.
