This research study with a US-based start-up focuses on selecting a 3PL provider and aims to achieve two objectives. Firstly, it assesses the financial analysis of third-party logistics service providers to offer insights and recommendations for transitioning from one 3PL partner to another. Secondly, it aims to identify the essential steps for selecting an optimal 3PL provider at different stages of a company's development, filling a gap in existing research. The research involves analyzing and comparing the cost structures of current and potential 3PL providers to gain insights into financial implications and potential cost savings. Furthermore, the study utilizes a structured process approach to select the best 3PL provider based on cost, delivery reliability, technology, and system interoperability in the different development stages of the business. Lastly, the case study findings demonstrate the financial benefits of migrating from the existing 3PL provider to a new one, highlighting the importance of aligning company development stages with 3PL provider selection. The research contributes to a better decision-making process in the 3PL industry and provides insights for small businesses during their scale-up phase.

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