Are you seeing red flags in your logistics relationship?
Published: 1 Sept 2023
We’ve mapped out the most common problems e-tailer’s experience and how to stand your ground with your logistics provider
You’ve been working with 3PL and you’re not completely happy with your experience. But what constitutes a real problem and a red flag in your relationship and what can be worked through? Our red flag list details a few reasons you might want to start ringing alarm bells and thinking about running for the hills.
They can’t handle your volume
This could be because you’ve grown exponentially and you are outgrowing the capabilities of your 3PL. As a result, you could be experiencing delays to inbound receiving, slower pick pack and shipping times as your provider is stretched too thin. Or alternatively, changes in your order volume could mean big fluctuations that coincide with seasonal shopping. You may find that your current provider doesn’t have the flexible space and staff required to handle the peaks and valleys that your business experiences.
They’re just a little too basic
As your business grows further afield you may be in the market for a 3PL with more strategically located distribution centers. Additionally, you may need more complex order management technology, product customization, returns or full-loop logistics capabilities that your provider doesn’t offer.
It’s no longer worth the $$
Perhaps your bottom line is being seriously hit by the cost of warehouse space, labor, freight costs and technology capabilities. Or perhaps you find you’re constantly hit with mystery fees that your 3PL wasn’t upfront about first. A 3PL’s job is to help you consolidate costs and use their carrier and freight networks to get better deals than you could on your own. If that’s not the case, then maybe it’s time to find someone who will help you optimize your costs.
It’s not me, it’s you: your technology isn’t compatible
A 3PL’s job is to make your life easier. If you constantly have to deal with syncing issues between their platform, order fulfillment software and your e-commerce platform then you’re dealing with too much. Orders from your e-commerce platform should automatically be pushed to fulfillment and delivery within the 3PL’s platform where you should have full visibility and tracking capabilities.
They’re stuck in the past
Has it been a while or have they never updated their platform, software or offerings? Your 3PL should be focused on creating a great experience for you and your customers and that means being agile and changing with the times. A great 3PL should frequently be releasing new features, opening new warehouses and updating their offerings based on the market and your valuable client feedback.
They’ve let you down too many times: service failures
Your 3PL’s top priority should be making sure your end customer has a positive order delivery experience. If, on a regular basis, you are having to cope with inaccurate order fulfillment, inventory issues, delivery delays and lack of communication, then they’re not doing it right.
You need more support
An out of date FAQ page does not make a relationship. If your 3PL is difficult to get hold of and isn’t proactive about solving problems and keeping you in the loop then you need them out of your life.
Sometimes your 3PL relationship gets strained but it is by no means broken. You might find digging in and figuring out a way to make it work could be a better option. Regularly taking stock to analyze where your 3PL is doing right by you and where they’re not is a great exercise for all retailers working with 3PLs.
Changing 3PL providers isn’t easy, but we at Borderless360 have optimized our onboarding to make the process as streamlined as possible. We’re on a mission to simplify logistics for e-retailers by being the one partner you need to streamline your supply chain and grow your business globally. Logistics industry veterans with powerful intuitive technological solutions, we’re here to help you scale. If you’d like to learn more, why not get in touch with us today? Contact us.
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