Third-party logistics providers (3PLs) have become essential partners in the building materials supply chain. As demand for speed, flexibility, and coverage grows, distributors increasingly rely on 3PLs to scale delivery operations, handle overflow capacity, and support specialized logistics needs.
But success with 3PLs doesn’t happen automatically. Without strong communication, shared expectations, and integrated systems, working with 3PLs can lead to delays, missed deliveries, and frustrated contractors.
To get the most value from your logistics partnerships, you need to approach 3PL relationships strategically—building trust, setting clear service standards, and leveraging technology to stay aligned.
Here’s how to partner with 3PLs more effectively and improve outcomes across your third-party logistics network.
- Define the Role of the 3PL in Your Logistics Strategy
Why it matters:
Not all 3PLs serve the same purpose. Clarity at the start prevents confusion later.
Questions to answer:
Will the 3PL handle first-mile, last-mile, or full-route deliveries?
Are they supporting overflow, specialty loads, or regional expansion?
Do they manage warehousing, transportation, or both?
Outcome: Clear expectations that align internal logistics planning with 3PL execution.
- Set Performance-Based Service Level Agreements (SLAs)
Why it matters:
Without service metrics, it’s difficult to measure performance or resolve disputes.
What to include:
On-time delivery rate
Proof of delivery (POD) compliance
Communication response times
Claims or damage rate thresholds
Pro tip: Review SLAs quarterly and adjust based on volume or project type.
- Integrate Systems for Seamless Order and Delivery Visibility
Why it matters:
Real-time visibility into 3PL deliveries reduces delays, confusion, and customer service headaches.
How to integrate:
Use APIs to connect your ERP or TMS with the 3PL’s tracking platform
Share delivery milestones (dispatched, en route, delivered) in real time
Automate updates and notifications for job site supervisors and contractors
Benefit: Everyone stays on the same page—without chasing down status updates.
- Standardize Communication Protocols Across the Network
Why it matters:
Every missed call or unclear message can delay a delivery or create costly errors.
What to train:
Use of shared communication tools (email, messaging apps, dispatch portals)
Escalation paths for missed deliveries, site issues, or damaged goods
Who contacts the job site, and how, in the event of a delay
Result: Clear, timely coordination that keeps materials—and schedules—on track.
- Train 3PL Drivers on Construction-Specific Delivery Protocols
Why it matters:
Job sites aren’t warehouses. Drivers need to know how to navigate and communicate effectively.
Training essentials:
Job site access instructions (gates, staging areas, contacts)
Offloading best practices for large or mixed-size materials
POD procedures with photos, digital signatures, and timestamps
Outcome: Fewer delivery issues, faster unloading, and stronger job site relationships.
- Use Scorecards to Measure and Improve Performance
Why it matters:
Data helps you manage 3PL performance objectively and drive continuous improvement.
Scorecard metrics:
On-time delivery rate by region or driver
Delivery exception frequency
POD compliance rate
Customer feedback and complaint trends
How to use it: Share results with your 3PL regularly to align goals and reward improvement.
- Establish Shared Contingency Plans for Disruptions
Why it matters:
From weather events to vehicle breakdowns, disruptions are inevitable. Planning ahead keeps you in control.
Contingency strategies:
Backup carriers or alternate routes
Pre-approved reschedule procedures
Inventory staging plans for high-priority projects
Result: You and your 3PL can respond quickly—minimizing job site disruption.
- Keep a Feedback Loop Between Field Teams and the 3PL
Why it matters:
Drivers, warehouse teams, and site supervisors all notice what’s working—and what’s not.
Best practices:
Set up a feedback system for load quality, delivery timing, and driver behavior
Share insights with your 3PL for coaching and process refinement
Act on recurring feedback with workflow or routing improvements
Benefit: You stay ahead of problems and evolve your 3PL relationship over time.
Final Thoughts
Working with third-party logistics providers is no longer optional for most distributors—it’s a core part of scaling and adapting in the modern construction supply chain. But true success with 3PLs comes from proactive partnership, not just outsourcing tasks.
By aligning on goals, integrating systems, and fostering strong communication, you can make 3PLs an extension of your brand and a key part of your delivery promise to contractors and job sites.
