Operations

5 questions to ask before signing a 3PL contract

15 May 2026

Choosing a third-party logistics partner is one of the highest-leverage operations decisions a growing brand makes.

1. What is your WMS actually showing me?

If the answer is "we'll email you a weekly stock report," walk away. Modern logistics demands live visibility — into received, putaway, picked, packed and shipped — by SKU and by lot.

2. Where do my goods sit in the building?

Bonded vs general, ambient vs special zone, racked vs floor — these decisions affect insurance, FIFO/LIFO compliance and damage rates.

3. Who is my single point of contact?

A control tower is only useful if someone picks up the phone. Insist on a named account manager.

4. What happens when something goes wrong?

Returns, damages, mis-picks. The 3PL's claims process tells you more about their culture than any sales deck.

5. Can I exit cleanly?

30-day exit clauses, free handover of WMS data, no hostage warehouses. If the contract makes leaving hard, you'll regret signing.

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