If you’re looking for a 3PL provider, you may begin to feel a bit like Goldilocks. You’ll encounter providers that feel “too big” and many that feel “too small” to handle your business effectively. For many companies, the “just right” 3PL is the mid-size provider that has the resources you require, plus the focused, personalized attention you expect. In this article, we’ll explore the advantages of working with a mid-size provider and help you determine if such a 3PL is “just right” for your business.
3PL providers of differing sizes
Small 3PLs may have 1 or 2 warehouse facilities within the same region. In addition to warehousing, they may provide additional supply chain services like transportation but with a very limited scope. Small 3PLs are typically limited financially and thus unable to invest in emerging logistics technologies to serve your business. On the plus side, small 3PLs will work with you closely, enabling direct communication with the people who handle your products.
At the other end of the spectrum are the big 3PLs. These companies are national and often international in scope. They may specialize in one specific service (e.g., transportation) or may integrate several logistics services. They have significant infrastructure and people resources, and the financial strength to invest in advanced logistics technology. However, they work primarily with large companies that can pump a lot of volume through the 3PL’s warehouse or transportation network to maximize profit. Communication with big 3PLs is both hierarchical and siloed, so it is difficult for anyone other than the major customers to work closely with key personnel.
The mid-size 3PL provider splits the difference between these two poles. They are generally regional or multi-regional in scope but may also provide national or international services. Some offer a full suite of integrated logistics services including warehousing, distribution, and port services. Many mid-size 3PL providers are financially sound and may have the backing of investors. They often partner with mid-size customers that are too big for small 3PLs and too small for big 3PLs, and will allocate the space and resources to facilitate incremental growth. Communication is closer to that of a small 3PL, where, as a customer, you work closely with a team of people that know your business intimately.
Advantages of working with a mid-size 3PL provider
If you’re a growing mid-size company, a mid-size 3PL is likely going to be the best match for you. The following are a few reasons why.
Mid-size 3PLs are agile. The logistics industry is evolving at breakneck speed, requiring supply chains to be more adaptable than ever. With new tariffs, trade policy shifts, and supply chain disruptions regularly making headlines, logistics agility is no longer just a buzzword—it’s a necessity. Mid-size 3PL providers, by their nature, are more agile than larger competitors. Whether it’s adjusting to new import restrictions, navigating supply chain bottlenecks, or modifying inventory strategies due to market volatility, a mid-size 3PL has the ability to shift gears fast.
Mid-size 3PLs can act faster as they don’t have as much “red tape” to navigate. Big 3PLs often require decisions to travel through multiple layers of management, leading to slow responses that can cost your business valuable time. Mid-size providers, on the other hand, operate with leaner structures, empowering decision-makers to take action swiftly. When you need quick adjustments—whether it’s rerouting shipments due to port congestion or reallocating warehouse space—you’ll appreciate the speed and responsiveness that a mid-size provider brings to the table.
Mid-size 3PLs offer customized solutions that support unique business requirements. Large 3PLs often take a standardized approach, requiring customers to fit into “one size fits all” service models. Mid-size providers, by contrast, can tailor solutions to fit your unique business needs (see Weber Logistics’ case studies for several examples of this customization). This flexibility is particularly valuable in uncertain economic times when supply chain strategies need to evolve quickly to mitigate risks.
Mid-size 3PLs can support growth that smaller companies can’t, while not requiring large commitments up front. For instance, some mid-size 3PL customers start out with shared warehousing but eventually expand to a dedicated operation fully supported by the same 3PL. Big 3PLs are unlikely to scale with you in this way. The big providers prefer to work with companies that have sizeable volume, and may set a minimum volume threshold to even entertain an opportunity. On the opposite end of the spectrum, small 3PLs often don’t have the ability, or even the interest, to grow with you.
Mid-sized 3PLs can allocate resources to your operation so that you don’t have to compete with other customers. Smaller 3PLs simply won’t have the appropriate equipment, labor and other resources to allocate to your operation, while big 3PLs will strongly favor their biggest clients when it comes to allocating resources. With mid-sized 3PLs – especially mid-sized 3PLs that have their own assets – you can lock in what you need and eliminate the risk of feeling like a small fish in a big pond battling for scarce resources.
Mid-sized 3PL providers may offer a complete end-to-end solution. An integrated logistics provider like Weber Logistics enables you to streamline your supply chain as you deal with only one company and one contract. As an example, let’s look at the typical journey of an imported container:
1. The container reaches the port
2. The container is drayed (transported) to a warehouse
3. The product is unloaded and stored in the warehouse
4. The container is returned to the port
5. The product is prepared for outbound shipment
6. The product is delivered to its final destination
All of these steps are handled by Weber – with one contract and one point of contact. This eliminates the need to manage multiple contracts and multiple outsourced relationships that are often necessary with both small and big 3PL companies.
Mid-size 3PL providers become part of your team. When working with a mid-size 3PL, you’ll build relationships with people who truly understand your business—not just a rotating roster of account reps. These folks are often as invested in your success as you are, truly functioning as a member of your team. By fully understanding your business, they are better positioned to guide it by anticipating market challenges and offering proactive solutions.
Looking for a mid-size 3PL provider from the West Coast?
If you’re feeling caught in the middle between too big and too small, look to Weber Logistics for your ‘just right’ solution. Weber offers a fully integrated solution from the West Coast with 14 distribution centers totaling several million square feet of space, and our own fleet of trucks for drayage and last-mile delivery (including a temperature-controlled fleet). To learn more about how our mid-size capabilities can optimize your operations and support your growth, contact Weber Logistics today.