Tips for Switching Third-Party Logistics Providers

After working for 3PL's for about 10 years There are 3 mistakes brands make when looking for a new 3PL. Do the opposite of these. #1 - Neglecting Cultural Fit and Communication Styles The relationship with your 3PL is more than just transactional; It is a long term "marriage." Avoid underestimating the importance of cultural fit and effective communication. Misaligned values or communication breakdowns can lead to frustration and inefficiency. Questions you should ask yourself ⬇️ Do you want a slack channel for you and your 3PL? Do you want an account manager on the ground at the warehouse? How quickly do they respond to your inquiries during procurement? (Its probably an indication of what the relationship will be like) Who are the types of people that work at the 3PL? What background do they have? Is it in logistics/supply chain? #2 - Not doing enough thorough research This is the one that bites people in the ass the most. You dont 25 different 3PL's in the mix. You need a solid 5. Better to go a mile deep than a mile wide. As a sales rep - this next part is kind of counterintuitive. Don't take the sales pitch at face value. Look for objective, third-party opinions and reviews to get a well-rounded understanding of their capabilities and service quality. Sure, sites like G2 and Trust Pilot are good but go deeper. Ask the 3PL for client referrals. Even better - go to their customer testimonial page and reach out to the brand by yourself. Go to e-com communities (Reddit, Facebook) - try to get in virtual or in person reviews of the 3PL performance. Once you dwindle down the list to your top 2-3 Then start understanding the company financials. I have seen many 3PL's either been shut down due, forcing merchants to leave abruptly. This is a crucial step. # 3 - Overlooking Scalability and Flexibility: You are, ideally, finding a 3PL partner for the next 3 years. Not the next 6 months. As your business grows, your logistics needs will evolve, and your 3PL should be able to accommodate this growth. Ask how they have supported the growth of brands throughout the years. The answers, or lack thereof, will be telling. Have them give you an example (or two) of them bending over backwards for a client when times got tough. Ask them how peak 2023 season went. Don't take "good" as a surface level answer. Ask more specific questions. Ask to what extent they dealt with large processing delays. What their average delivery time was. Any unexpected situations that came up and how did they handle them? I could go on forever, but these 3 areas are often most overlooked. The more you know, the better you will be choosing the right partner . #3PL #logistics #supplychain

Always send a formal termination letter to your current 3PL before switching providers. Without this step, you might find yourself in a tough spot with breach of contract claims or unexpected fees. Here are a few tips to ensure a smooth transition: 1️⃣ Review your current contract: Understand the terms, including notice periods, termination clauses, and potential penalties. 2️⃣ Send a clear termination notice: Stick to the contract’s requirements and keep records for your protection. 3️⃣ Communicate with both 3PLs: Ensure the new provider is aligned with your timelines and ready to avoid service disruptions. Taking these steps ensures your business can focus on growth instead of legal headaches.

Tired of mediocrity with your current 3PL? Thinking of running an RFP before Q4? Understanding the process is key. An RFP helps you explore your options but it is a lot and needs proper preparation and a team to run and execute it. Garbage in garbage out. 🍎Make sure you are comparing apples-to-apples pricing. All 3PLs quote things differently. Make sure you understand what pricing you are looking at and be sure to normalize it across your offers. Otherwise, the entire exercise is worthless.  💰Price matters. But it's not everything. Cheap pricing will protect your margins but may disqualify some of the better 3PLs on your list. 🌟5-star Customer Service is a must. Can you reach the warehouse and the team to make moves instantly? Push hard and don’t settle for bait and switch. 📈Reporting and metrics are key. Expertise is critical. Push for visibility and reporting that you understand and that is actionable. Navigating without visibility is a death sentence in eCommerce. Having multiple options and data at your fingertips means you’re not just choosing a vendor—you’re setting clear expectations and selecting the best possible partner for your business. I’d love to hear some of your successful RFP stories!  🏅If you’re still unsure where to start, check the comments for our guide to creating a successful RFP process for your 3PL search (because let’s face it, with it being Q3 it’s either now or next year).