A while back, we got a call from a CPG brand that had outgrown their setup, fast.
Their orders had suddenly spiked, their garage was packed to the ceiling, and keeping up with shipping was turning into a daily scramble.
They didn’t need more people. They needed a better way to manage it all. That’s when we started talking about working with a 3PL warehouse.
If you’ve ever found yourself struggling to keep up with growth, managing storage, packing, and deliveries, you’re not alone. It’s a lot.
The right warehouse partner doesn’t just move your products. They bring structure and give you space to scale without burning out.
But choosing a 3PL isn’t always straightforward. Some will slow you down. Others will feel like an extra set of hands on your team.
Here’s what to keep in mind when you’re looking for a warehouse partner you can actually grow with.
What is a 3PL Logistics Warehouse?
A 3PL logistics warehouse is a third-party facility that stores, handles, and ships inventory on behalf of other businesses.
The term 3PL stands for Third-Party Logistics, and when combined with warehousing, it refers to outsourcing your inventory storage and fulfillment operations to a specialized logistics provider.
What Do 3PL Warehouse Companies Do?
Here’s what a typical 3PL warehouse company handles:
- Storage: Keeps your inventory organized and safe.
- Pick and Pack: Picks products off shelves and packs them for shipment.
- Order Fulfillment: Ships orders directly to your customers.
- Returns Handling: Manages product returns and restocking.
- Inventory Management: Tracks what’s in stock, what’s shipping out, and what needs to be replenished.
How to Choose the Perfect 3PL Warehouse?
Not all 3PLs are created equal, and if you’ve ever dealt with missed shipments or poor visibility, you know exactly what we mean.
With so many 3PL warehouse companies competing for your business, it can be tough to figure out who’s actually equipped to support your growth.
Some are great at storing inventory but fall short on fulfillment. Others overpromise and underdeliver. The key is knowing what to look for, and what to avoid.
We’ll walk you through how to spot 3PL warehouse companies that align with your operations, goals, and customers.
1. Accuracy and Error Rates
One of the most important performance indicators when selecting a 3PL partner is how well they manage order accuracy and error tracking.
Even small mistakes in picking or inventory handling can lead to lost revenue and dissatisfied customers.
What to look for:
• Order picking accuracy: A dependable 3PL should consistently achieve over 99 percent accuracy in order fulfillment.
• Inventory shrinkage: Shrinkage rates should ideally stay below 1 percent. Higher rates may signal poor inventory control or lack of accountability.
• Transparent reporting: If a 3PL doesn’t track their error rates or refuses to include them in the service-level agreement, that’s a sign to dig deeper.
At Newl, we’ve spent over 35 years perfecting our warehousing processes. Our low error rate is the result of disciplined operations, experienced staff, and a commitment to accuracy at every step.
It’s not just about shipping boxes, it’s about doing it right every time.
2. Carrier Liability
When goods leave a 3PL facility, the responsibility often shifts to the shipping carrier. A 3PL warehouse is typically not liable for mistakes made by third-party carriers during transit.
Carrier liability refers to the legal responsibility carriers have for:
- Loss or damage to goods during shipping
- Missed delivery deadlines
- Non-compliance with safety or transport regulations
To protect your business:
- Ensure your contract outlines how the 3PL handles shipping errors
- Check if 3PL warehouse services include support with claims or issue resolution
- Consider added insurance to cover potential gaps in carrier coverage
Clear terms and proactive planning can reduce risk and ensure your 3PL warehouse services work smoothly from dock to door.
3. Clear Performance Standards (SLA)
A solid 3PL relationship starts with a clear Service Level Agreement (SLA). This document should outline exactly what success looks like, on both sides.
Look for SLAs that define:
- Order accuracy and on-time delivery targets
- Inventory accuracy expectations
- Customer service response times
- Penalties or actions if targets aren’t met
The more specific the SLA, the better your visibility and accountability.
4. Flexibility & Scalability
Supply chains shift, your 3PL should, too. Choose a warehouse partner that can flex with demand spikes, seasonal changes, or unexpected reroutes.
A reliable 3PL warehouse should be able to:
- Adjust shipping lanes as needs evolve
- Offer backup plans or alternate suppliers when issues arise
- Act as a single point of contact across logistics functions
This agility reduces friction, especially when things don’t go as planned.
5. Technology That Supports Growth
Modern logistics runs on real-time data and connected systems. Your 3PL warehouse should offer tech that brings clarity, not complexity.
Top-tier 3PL warehouse services include:
- Integrated systems for order tracking, inventory, and fulfillment
- Real-time shipment visibility with detailed reporting
- Actionable insights to improve planning and performance
Newl offers a built-in Warehouse Management System (WMS) at both its Charlotte and Mississauga warehouses, allowing clients to centralize operations, manage inventory, and view fulfillment updates all in one place.
Newl 3PL Warehouse: Built for Brands That Hate Delays
If you’re tired of juggling too many moving parts and just want warehousing that works, without the extra hassle, it might be time to explore a smarter 3PL partnership. That’s where Newl comes in.
Whether you need storage, fulfillment, or seamless integration with your supply chain, we’ve built a system that grows with your business, not against it.
1. Scalable Storage Solutions
From short-term overflow to long-term storage, our facilities are built to grow with you. Need 10 pallets today and 100 next month? No problem.
2. Efficient Pick, Pack & Ship
Speed matters. Our pick and pack process is designed for accuracy and quick turnaround, helping you keep your promises to customers.
3. Warehouses Across North America
Need space in the East, West, or anywhere in between? Our warehouse network spans the U.S. and Canada, making storage accessible wherever your customers are.
Partner with a warehouse team that understands how fast business moves. Tap into flexible solutions, real-time communication, and the support you didn’t know you needed, until now.
Let’s talk storage that works for you.
Final Thoughts
In the world of last-mile delivery, warehousing is the quiet engine behind smooth operations. Choosing the right partner can mean fewer delays, faster turnarounds, and fewer customer complaints.
It’s not just about storing boxes, it’s about building a system that keeps your entire operation running without hiccups.
Frequently Asked Questions
1. Can I use your warehouse for seasonal inventory spikes only?
Yes! At Newl, we offer flexible terms for seasonal or short-term storage without locking you into long-term contracts.
2. Do you support fulfillment for Amazon and other marketplaces?
Absolutely. We handle prep, labeling, and direct shipping to Amazon FBA and other marketplace fulfillment centers.
3. What security measures are in place at your warehouse?
Our facilities include 24/7 surveillance, restricted access, and on-site personnel to keep your inventory safe.