Choosing a 3PL: 20 Must‑Ask Questions Before Signing
- Ask the right questions : 20 targeted queries cover capacity, tech, compliance, and customer experience.
- Match your growth : Evaluate scalability, COD handling, and RTO support for Tier‑2/3 markets.
- Leverage tech : EdgeOS, Dark Store Mesh, and NDR Management should be part of your decision matrix.
Introduction
In the fast‑paced Indian e‑commerce arena, a 3PL is no longer an optional outsourcing partner—it’s a strategic axis that can make or break your supply chain. Think Mumbai’s peak‑hour delivery snarls, Bangalore’s COD‑heavy demand, or Guwahati’s last‑mile challenges. A misaligned logistics partner can amplify costs, degrade customer experience, and stall your growth. The question is not *if* you should partner with a 3PL, but *which* one will elevate your operations.
This guide distills the 20 questions every Indian retailer must ask before signing a contract. We’ll weave in Edgistify’s EdgeOS, Dark Store Mesh, and NDR Management, not as sales pitches but as practical tools that can resolve real pain points.
1. Capacity & Scalability
Question 1 – What is your peak‑season capacity?
- Why it matters : Festive seasons (Diwali, Christmas) see a 200‑300% surge.
- Data Table
| Region | Avg. Daily Orders | Peak‑Season Capacity | Buffer Capacity |
|---|---|---|---|
| Mumbai | 5,000 | 15,000 | 20% of peak |
| Bangalore | 4,200 | 12,000 | 15% |
| Guwahati | 1,200 | 3,600 | 10% |
Question 2 – How do you handle sudden volume spikes?
- Solution : On‑demand micro‑warehouses via Dark Store Mesh can absorb overflow.
2. Technology & Visibility
Question 3 – Which WMS/OMS do you use?
- EdgeOS integration : Offers real‑time inventory visibility and automated replenishment.
Question 4 – Do you provide 24/7 API access?
- Problem‑Solution Matrix
| Problem | Solution |
|---|---|
| Lack of real‑time data | EdgeOS API + AI analytics |
| Manual order entry | Automated Order Sync |
Question 5 – How do you track returns?
- NDR Management : Handles non‑delivery returns with predictive routing to reduce cost.
3. Last‑mile & RTO
Question 6 – What is your COD handling rate?
- India’s COD preference : 70% of consumers still prefer cash on delivery.
Question 7 – What is your RTO success rate?
- Metrics : RTO failure < 2% in Tier‑1, < 5% in Tier‑2/3.
Question 8 – Do you use a dark‑store model for RTO hotspots?
- Benefit : Faster pickup, reduced delivery times.
4. Compliance & Insurance
Question 9 – Are you compliant with GST & local regulations?
- Why : Avoid penalties, especially in cross‑state shipments.
Question 10 – What insurance coverage do you provide?
- Coverage : ₹1 crore per shipment or higher for high‑value goods.
5. Pricing & Contracts
Question 11 – How is pricing structured?
- Transparent tiers : Per‑order, storage, handling, COD fees.
Question 12 – Are there hidden charges?
- Examples : Fuel surcharges, late‑night delivery, cross‑border fees.
Question 13 – What is the contract duration?
- Flexibility : 12‑month minimum, with 3‑month renewal option.
6. Customer Experience
Question 14 – Do you offer same‑day delivery?
- EdgeOS scheduling : Optimizes routes for same‑day service in metro cities.
Question 15 – How do you handle damaged goods?
- Process : Immediate claim portal + on‑site inspection.
Question 16 – What is your SLA for delivery windows?
- Targets : 90% within promised window in Tier‑1, 80% in Tier‑2/3.
7. Sustainability & ESG
Question 17 – Do you incorporate green logistics?
- Initiatives : Electric vehicles, carbon‑offset programs.
Question 18 – How do you report ESG metrics?
- Reporting : Quarterly dashboards via EdgeOS.
8. Team & Support
Question 19 – What is the size and composition of your operations team?
- Need : Dedicated account manager + tech support.
Question 20 – How do you handle escalations?
- Escalation matrix : 24‑hour response, tier‑1 support.
Edgistify Integration as a Strategic Recommendation
| Pain Point | Edgistify Solution | Benefit |
|---|---|---|
| Inventory blind spots | EdgeOS real‑time visibility | 30% reduction in stockouts |
| RTO inefficiencies | Dark Store Mesh in Gurgaon & Hyderabad | 25% faster pickup, 15% cost saving |
| Return logistics | NDR Management predictive routing | 20% lower return handling cost |
By asking these 20 questions, you can objectively compare potential 3PLs and ensure they align with your growth trajectory, tech stack, and customer expectations.
Conclusion
Choosing the right 3PL in India is akin to selecting a reliable co‑driver for a long, unpredictable road trip. The 20 questions above act as a compass: they point you toward partners who possess the capacity, technology, compliance, and customer‑centric mindset required to scale across metros and tier‑2 cities alike. Remember, the goal is not just to outsource logistics but to embed a strategic partner into your growth engine.