There are a lot of businesses that rely on third-party logistics (3PL) providers to increase the efficiency of their operations and reduce costs. However, there comes a time when a 3PL provider is not sufficient or is not providing the right services that benefit the business. Following are a couple of reasons you should look to change your 3PL service provider.
1. Warehousing
One of the main benefits of a 3PL service provider is warehousing solutions. Most providers have specialized warehouses that store particular products. 3PL logistics providers manage inbound and outbound transportation for their clients, as well as warehousing. However, a couple of factors can compel you to change the provider. The warehouse rent has increased, the staff is not looking after inventory, there are damages to products, or the warehouse has run out of space. These are some common reasons; however other factors might also be the reason. If you are having difficulties with warehousing or storage, then it’s a good indicator to look for another service provider.
2. Outdated Software
This is one of the most common reasons a business changes its 3PL provider. 3PL deals mostly with inventory management which is maintained by software. However, many providers fail to update or rectify its errors resulting in false stock reports. This means it will show over or under stock, storing and packaging issues, delivery and transportation problems and other similar problems. All these issues will affect your business’s daily operations, which can result in loss of income and customers. Therefore, always check that the software is up-to-date, and if not, don’t take a chance and change your 3PL service provider.
3. Late Deliveries
Your business will thrive if it satisfies the existing customers and makes them happy. If your business is online, making on-time deliveries is the only way to make the customers loyal. A 3PL service provider takes full responsibility for fulfilling your customer orders and delivering them without delays. However, if the customers receive late or faulty deliveries, it will negatively affect your business and will not help with new lead generation. Usually, a 3PL provider has numerous ways and strategies to ensure this doesn’t happen, but certain factors might hinder the operation. This can be anything from a shortage of stock to transportation issues. If such issues persist, start looking for a new service provider to minimize the losses.
4. Large-Volume
There is a limit to what certain 3PL providers can handle, and if your business grows in volume, such service providers find it hard to stay with customer demands. Naturally, if your business cannot fulfill customer orders, it will suffer losses and stagnate its growth. Therefore, when such an issue arises, the best action is to look for a bigger 3PL company that can handle pressure and large inventory volume without any difficulties.
3PL service providers are like a partner to your business. If a partner is not performing their duty to the maximum, it will affect the whole organization. If you observe any of the above problems with your 3PL provider, it might be time to change them.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.