3pl

3 Major Signs You Need to Switch Your 3PL Provider

A 3PL service, or “third-party logistics,” is a type of logistics service that outsources the storage, handling, and transportation of goods to a third-party provider. 3PL services allow businesses to outsource their logistics operations to a third-party provider, which typically has more experience and expertise in managing the logistics operations than the business itself.

That being said, while many companies are happy with their 3PL service providers, not all businesses are content. You might feel the same way, as if there’s something more to be desired when working with your 3PL service. But leaving your 3PL service now to opt for a new one can be time-consuming and expensive, so you’ll want to make sure you actually need to make a switch.

To help you out, we want to share with you a couple of signs telling you that it is time to fire your current 3PL provider and opt for a new one:

1. They’re Not Properly Fulfilling Orders

Do you find your customers are not receiving their orders on time or that you are sending out the wrong orders to them? Are they receiving damaged goods? These issues can be indicative of inefficiencies in your third-party logistics provider. It may be that they lack the necessary automated systems, expertise, or even staff to properly and efficiently fulfill your orders. This can lead to delays and mistakes in shipments.

And regardless of the reason, if your orders aren’t properly fulfilled, your customers will be unhappy. And, when they’re unhappy, there’s a high chance they won’t come back to you.

2. There’s an Obvious Lack of Inventory Management

An Inventory Management System (IMS) is a system that helps businesses track their inventory and ensure accuracy in ordering and shipping, keeping track of goods, products, and materials that a business holds in its warehouse or storage. This includes tracking and monitoring the quantity, location, and condition of stock items, as well as ordering, restocking, and returning goods as needed. It is important to ensure accurate inventory levels to avoid both overstocking and stock-outs, which can lead to lost sales and revenue.

If you are having difficulty keeping track of your inventory and are having problems with stock-outs, overselling, or delays in shipping, it may be time to switch to a 3PL provider that has an efficient IMS in place.

3. Customers Are Constantly Unhappy and Leaving Negative Reviews

Customer satisfaction can be guaranteed in many ways, such as offering fast shipping, ensuring order accuracy, offering a hassle-free return process, unique unboxing experiences, and so much more. Many of these tasks are up to the 3PL provider who picks, packs, and ships the products or deals with the returns process.

If you constantly have to deal with customers that are unhappy and are leaving bad reviews related to the shipping process or damaged goods, chances are your 3PL provider is responsible and that you should fire them soon.

Change Your 3PL Provider for the Better

Finding the ideal 3PL partner is an integral part of being successful in the e-commerce space. Poor 3PL services can hurt your image, decrease profits, and lead to loss of customers. If you notice signs like inadequate data integration, unsatisfied customers, or limited expansion capability, it may be time to look for a better 3PL partner. Make sure you do your due diligence and select a partner that provides the services you need for your business to thrive.

Your Logistics Corp is a full-service warehousing and fulfillment service provider that helps large e-commerce businesses provide incredible experiences to their customers. If you are looking for 3PL fulfillment services in the US, get in touch with us today!

Andrew Kirk

I am an experienced logistics and supply chain executive with over 15 years in the global end-to-end logistics field, including retail, direct sales, and B2B. I leverage strong relationship skills, a team-oriented management style, and a focus on talent development to drive results and lead change for our internal team and clients alike.