Starting a 3PL Business? Here are some Tips!

[@supplychainsecrets]

This video is brought to you by Logistics Bureau - Management Consultants, who reduce costs and improve service for organisations Worldwide. If you need any assistance on any of the topics on this channel, just visit us at: www.logisticsbureau.com/

[@SeanFarrington]

I love the suggestion about the Value-Add for Kitting. That is a huge differentiator from a marketing perspective - offering a solution that solves the whole problem in one bundle, especially if the market is crowded with single product offers, what a great way to stand out and start to dominate. Great episode!

[@supplychainsecrets]

Thanks, glad you liked it. In a crowded low margin market, like warehousing and transport, moving up the value ladder can be a good strategy.

[@serkillz6426]

You got me 😂 I own a couple commercial trucks and a piece of land 😅 Though I wouldn't mind leasing but would like to have customers lined up but have no idea where to start.

[@supplychainsecrets]

I'm sure it's tempting! But see what the market demand is first.

[@serkillz6426]

@@supplychainsecrets How should someone new to everything go about finding that out? It isn't like I could call any warehouse and interview the owners

[@supplychainsecrets]

@@serkillz6426 I would start by attending local industry networking events, conferences and the like. Talk to lots of people.

[@yaseerahamed7444]

Thanks for valuable information, love from Oman 🇴🇲

[@supplychainsecrets]

Happy to be of help.

[@jazzythagreat]

So I’ve been in warehousing for over 12 years. The fact that I’ve mentioned every point you stated here lets me know I’m ready to start my own business. My biggest question to you would be leasing a property. Should I lease or buy?

[@supplychainsecrets]

Depends on many things. (1) The ease of finding customers. (2) Types of customers (3) Type of storage you'll provide (4) Expected growth. I would probably lease in the the beginning.

[@dpsheals]

Value added service: crating One company may need x number of crates on x date. Or a company may send you a high value item that needs crating and packing. Get to crate cool stuff for all types of different govt agencies.

[@supplychainsecrets]

Yes, there are lots of potential value adds like that. Good eaxmple.

[@alankomah7015]

Great video. Thank you

[@supplychainsecrets]

Glad you liked it!

[@hemanthkumar-sk2zd]

I miss your old intro music clip.but was really good

[@supplychainsecrets]

LOL. I forget what that one was like. Maybe we’ll go back to it?

[@supplychainsecrets]

We'll go back to the old one for a while. I like that one too 🙂

[@umaimahabdullahkhan]

Amazing thanks sir

[@supplychainsecrets]

Most welcome

[@ErkaPrepabdullah]

Hello Sir, Thank you for the excellent explanation. We truly appreciate it. We have recently started a 3PL Warehouse in New Jersey, USA called ( Erkaprep L.L.C ). We would like to ask for your advice on attracting more customers. Could you possibly make a video about this as well? Thank you for your time and assistance.

[@supplychainsecrets]

Sure, I'll aim to do that.

[@ErkaPrepabdullah]

@@supplychainsecrets Thank you sir

[@MA-mh9mi]

How do you assess demand for your service? Is this by putting ads up? Seeing the response from the ads? What other ways would you suggest? I would like to open a fulfillment centre for small to medium-sized businesses but have little idea of how much demand is there for this in my area?

[@supplychainsecrets]

That's huge question. Network with those in the industry, in your area, as a start point.

[@MarkSmsnsn]

Hello Sir, do you think that country like Ireland is a possibility for new 3pl? There is just a lot of competition how do you think you can acquire potential new customers or take customers from competition it seems like impossible job

[@supplychainsecrets]

There are already a lot of good 3PLs in Ireland. If you want to be successful, you need to offer something different, better, more valuable. That my friend, is the secret to any successful business. And it's the toughest thing to get right. I'd start with researching the market and looking for a good niche. If the answer was easy, I'd be in Dublin right now setting up a 3PL.

[@B2UGROUP]

Thanks for your videos. They help a lot. What software or app do you suggest for a startup 3pl based in the US in order to manage inventory and that provide clients to have access to their numbers ? Thank you again !

[@supplychainsecrets]

I think there are so many Apps out there, it's hard to keep up to date. And I would rather not recommend one as I need to remain vendor neutral. A google search will throw up a few I'm sure.

[@nikkih7638]

How do you start by hiring a team meaning like what type of ppl would be needed to help the start up? How do you pay them

[@supplychainsecrets]

That's really a fundamental question about business start ups. You self fund, borrow money, or boot strap.

[@chrischris3551]

What’s the option if someone wants to open his 3pl logistic firm with no experience at all in this industry be? What kind of job positions would you recommend for starters,thanks

[@supplychainsecrets]

Firstly, I think starting a business in any industry with no experience in that industry could be risky. As for what positions? Business development. To own and be successful with any business you need to understand your customers needs and be able to sell your products and services.

[@maxariadent]

Hi. Great video. A few questions. I am looking at starting-up a logistics business. I own commercial property and 1 of them currently is an empty shell with commercial usage listed as office/storage on a business park. Thinking that it would be ideal for a logistics business servicing e-commerce SMEs. I need to do some market research on competitors etc first to see if it’s viable. The area and demographics seem ideal lots of Greenland, businesses, factories, schools/residential areas etc with transport links to France/straits etc. My questions are: What keywords shall I search for the competitor and market research, I notice lots of ‘names and phrases’ related to these type of businesses? What resources shall I read/listen to for the startup of this? Are there any mentors in this space preferably with knowledge of this type of business in the U.K.? Thank you.

[@supplychainsecrets]

Look for warehouse services, contract warehouse, 3PL, distribution business

[@Cleofis23]

Im thinking of starting a 3pl but without the wharehousing component. So basically a container yard where we can load containers on a bare chassis. And store the freight in the container. So no touch freight. Any tips on how this model can be applied?

[@supplychainsecrets]

It's not a model I have experience of, sorry. I presume the containers remain closed and sealed? So you are only handling full containers?

[@Cleofis23]

@@supplychainsecrets that's correct. The containers would remained sealed unless they are empty. I will also store empty containers as well.

[@ifyourespondyourmad.2409]

I have a question that is bugging me deeply. Is starting a logistics company dependent of full time attention. The reason i ask is because I obviously don't have the funds to start a company. I thought about focusing on another occupation that can possibly pay me well enough to do so. But I might be overwhelmed trying to keep that occupation to fund the logistics business, and actually building the logistics business. Or would it be better to just get a job in logistics from the beginning even if its a low paying job like carrying boxes at a warehouse for some employer and climb the latter from there.

[@supplychainsecrets]

I would get a Logistics 'job' first and start learning from that.

[@supplychainsecrets]

What other tips on 3PL startups do you have? Or questions?

[@DowSpec]

Thanks, great explanation. We have a consolidated 3pl service in our country, could you recommend a warehouse manage system?

[@philliplloyd1518]

In terms of value added services, do you recommend the 3PL company develop their own systems inhouse or is it better to outsource and get your systems and technologies from Logistics IT developers that specialize in that? Is it a combination of both?

[@tortreform9478]

Well I have a piece of land. I am a franchisee of restaurants, hotels, and truck stops in the US. Having truck drivers as customers and dealing with supply chains of my franchise businesses, i have wanted to learn more about this topic. I know nothing about 3PLs but i do know how to look at a franchise. Is there any 3PL franchises? Thanks

[@supplychainsecrets]

I haven't heard of any. Tough business though and low margins unless you specialise.

[@tortreform9478]

@@supplychainsecrets Thanks for the reply. If margins are better then dollar menu hamburgers then It can’t be a bad business to be in. Im sure labor is an completely different animal.

[@supplychainsecrets]

@@tortreform9478 You'd need to check out the local market a bit I think.

[@alexsg5384]

How is that going so far?? In my limited knowledge I would say it is all about relationships and customer service, from a 3PL company onboard launching pov

[@tradingtrainingandatoddler6244]

Thanks for the video. As I am doing my initial research for my Logistics and warehousing business. I was wondering if you could recommend a complete software or application that will minimize the headache in terms of Tracking, client profile, management, historical data, I mean a complete software or platform to use my new business. I will start small by shipping containers, managing my own small fleet of tracks and I want to expand my service to larger companies to offer my services. Thanks

[@supplychainsecrets]

Sorry I don't recommend specific software or services. Plus I'm not really an expert in the area of software! 🙁

[@SHIVRAJYA2020]

I can recommend software. I m implementing WMS for last 11 years.

[@themcdonaldsguy1377]

How do i get customers

[@supplychainsecrets]

That is the biggest challenge for any new business. And it's not a simple answer. I would suggest if you are no sure how to do it that you get a job with a 3PL to learn. You need to understand aspects such as (1) what services are required in your area / country. (2) what services are already offered (3) what services you think you can provide in a better way. (4) what companies are likely to use your services. (5) how those companies currently source 3PLs etc etc

[@elementalgolem5498]

yeah chilled/frozen isnt a option, the countries largest logistics giant is a food giant. has basically a monopoly on all food stores/gas stations/hotels in the nation and has a MASSIVE chilled storage and a big ass frozen storage, ecommerce is the only option within logistics

[@supplychainsecrets]

What country is that?

[@elementalgolem5498]

@@supplychainsecrets Norway. I actually checked. It's not almost a monopoly, they DO hve a monopoly 😂 and they infact advertise "Norways provider of all things food" Trying to go against them would be boardeline self unaliving. A company is trying to bring home delivery from their own warehouses to the market, and even they are not able to make a profit Vs the giant ASKO

[@supplychainsecrets]

@@elementalgolem5498 Yes, this can happen in a market where there is a high cost of entry, such as expensive chill / frozen storage.

[@sanathdsouza8658]

Please make video on 3pl buisness in food

[@supplychainsecrets]

I’m not sure the industry makes much difference does it? 3PL services are fairly similar across industries.

[@KevinLoboLAX]

Is an OTI essential to issue Delivery Orders on an overseas partner’s FMC registered Inbound HBLs in the US

[@supplychainsecrets]

Sorry you'll need to explain those acronyms!

[@Hissecretobsession1]

how to find 3pl clients

[@supplychainsecrets]

Sure, we can add that to the list of future videos.

[@migs_dotcom]

Could we get one for 4pl and 5pl?

[@supplychainsecrets]

I'll see what I can do..

[@saeedbasabain4188]

Thanks

[@supplychainsecrets]

No problem