Your partnership with a third-party logistics (3PL) provider can be incredibly powerful. We’re talking about the kind of power that can uplift (or stifle!) your ability to build a thriving business. From improving delivery rates to increasing efficiency across your supply chain, your 3PL partner should serve as an extension of your team, helping to drive growth and propel your big-picture initiatives forward. And that’s why it’s crucial to identify a 3PL who will devise a customized and cohesive strategy for your business, while regularly assessing practices to ensure cost, speed, and efficiency are accounted for.
So, what happens when your current partner isn’t adequately supporting your growth or needs? Do you really want your 3PL impeding on your efforts to reach new levels of success? We hope not. Here’s a look at six signs it could be time to switch 3PLs to gain a more advantageous partnership.
Just as your customers expect you to uphold and deliver on brand promises, you should hold your 3PL accountable for fulfilling their promises to you. A big piece of that equation lies in their inventory management capabilities. Do they claim they have the expertise, but fail to live up to expectations?
Here’s the reality: chaotic or disorganized inventory management can instigate a whirlwind of issues – from broken or missing items to incorrectly fulfilled orders – ultimately eating away at your profitability. What’s more, you’ll risk permanently damaging your brand’s reputation. Consumers expect products to be delivered on time and accurately. If your 3PL is dropping the ball in this arena, this can lead to a negative customer experience and cause your revenue to plummet. For these reasons, it’s imperative to find a 3PL that offers solutions rooted in transparency, providing you with real-time visibility into your inventory.
Communication is at the heart of every business relationship. Think about it: how can you expect your 3PL to support your goals and drive momentum for your business if there is no open and recurring dialogue surrounding your needs, plans, and future initiatives? In a similar vein, if your 3PL partner lacks in the communication department, it can translate into operational delays and disruptions due to unresponsiveness and the absence of timely updates.
Another word for outdated technology? Headaches. If your 3PL warehousing partner doesn’t actively invest in – and harness the power of – technology, it’ll put you at a disadvantage. From inefficiencies in your supply chain to losing a competitive edge in the marketplace, the type of software and systems your 3PL utilizes can transform your business – for better or worse.
Both the logistics and e-commerce industries have made massive strides in terms of digital adoption in response to changing consumer demand. Today’s shoppers expect convenience and transparency, and your 3PL should have the tools in place to deliver in those areas. They should also possess the technology needed to weave automation into your supply chain, integrate with your current tech stack, and provide analytics to help you make data-backed decisions.
Does your current 3PL partner have a limited number of warehouses? Are they located far away from customers? These things can certainly have an impact on your business, contributing to longer delivery times and higher shipping costs. You’ll want to identify a 3PL provider that has warehouses located in key markets across the country, putting your products closer to the end customer.
It should go without saying that quick, accurate shipping can greatly influence both brand loyalty and customer satisfaction. It’s important to remember that shipping delays will cast a negative light on your business and not on the actual culpable party, as customers don’t know there’s a 3PL service working behind the scenes. They only see you. And you can bet you’ll see the corresponding negative reviews reflecting any shipping issues, which could hurt your business’s ability to grow long-term.
An effective 3PL partner is one capable of scaling as your business scales. From new product launches to seasonal fluctuations, it is pivotal to leverage a 3PL with the tools, resources, and systems in place to handle new and changing business needs. Your 3PL should never be the roadblock hindering your success. Instead, they should constantly evolve alongside your business, utilizing cutting-edge technology and continuously restrategizing to ensure your supply chain is optimized.
Switching to a new 3PL partner can feel like an overwhelming and complex process, but at Smart Warehousing we will ensure your transition is a seamless one. With extensive experience in supply chain management, we provide solutions spanning everything from order fulfillment and inventory management to transportation services. With 38 warehouses located in key markets across the U.S., we can effectively house products closer to your customers to decrease costs and improve the customer experience. To discover how the Smart Warehousing team can help create a customized solution for your unique logistics needs, contact us today.