As online sales continue to surge, e-commerce businesses often reach a point where they must seek an external fulfillment partner. Unfortunately, some end up with a substandard or incompatible service provider. Such a misguided partnership can lead to a host of problems for the retailer, including damage to their brand and customer relationships, financial strain due to excessive customer credits, and an overwhelming commitment of resources and time to customer service.
While it may seem tempting to persist in such a situation and try to make it work, the smarter move for an e-commerce business is to pursue an exit strategy. The sooner a company decides to break free from an inadequate provider, the smoother the transition will be. Lingering in a problematic fulfillment partnership wastes valuable time and money that could have been invested in the company’s growth instead.
Is It Time to Switch Your Order Fulfillment Partner?
If you find yourself questioning the effectiveness of your current order fulfillment services provider, it may be the right moment to consider a change. Here are clear signs that it’s time to start exploring new 3PL options.
1. When Your Fulfillment Provider Falls Short of Basic SLAs
If your current 3PL consistently fails to meet the fundamental service level agreements (SLAs) essential for efficient fulfillment, it jeopardizes the very essence of your commitment to customers. Timely and accurate order processing is crucial in maintaining your promise of delivering the right products to the right place at the right time. To ensure your provider’s performance meets expectations, be on the lookout for these potential issues:
- An increase in product returns due to quality problems or damages during shipping.
- Delays in the warehouse receiving process, leading to extended periods before products are logged into inventory.
- Incorrect picking of orders, resulting in the shipment of wrong products or incorrect quantities to customers.
- Missed deadlines for same-day, next-day, or two-day shipments.
2. Post-Acquisition Changes in Fulfillment
In the dynamic world of logistics, acquisitions are commonplace, and your current provider might undergo a change in ownership due to such a business transaction. This shift in ownership can significantly impact your fulfillment relationship, and it’s crucial to assess whether these changes have been favorable for your operations. When your provider is acquired, carefully evaluate the alterations that have taken place. Are there any signs of service levels declining? Do you still have access to essential middle and upper management? Are people primarily focused on integrating the acquisition, neglecting your needs? If the changes are causing discomfort, it might be wise to consider seeking a new fulfillment partner that aligns better with your requirements.
3. Your 3PL Lacks Proactive Improvement Efforts
Basic fulfillment partners often settle for meeting basic order processing needs without aiming for excellence. A genuine fulfillment partner, however, takes the initiative to identify areas for enhancement and cost-saving opportunities on your behalf. Are they proactive in suggesting new equipment and streamlined processes to improve efficiency and reduce costs per order? Do they recommend alternative parcel services that could cut down eCommerce shipping expenses? If your current partner doesn’t consistently bring forth ideas to elevate your fulfillment operation and strengthen the partnership, it might be a sign that it’s time to seek a new and more proactive fulfillment provider.
4. Limited Access to Fulfillment Partner’s Management
Some fulfillment partners may initially impress you by involving their top-level executives in discussions, but later on, you might find that you don’t actually have reliable access to them. Other providers may restrict your communication to an account manager or a specific point of contact, preventing you from addressing concerns directly with the leadership team.
The performance of your fulfillment partner directly impacts your brand reputation and profitability. Thus, it is crucial to have an effective means of resolving issues when they arise. If you find that you are unable to reach out and speak directly to the leadership team of your fulfillment 3PL when needed, it could be a clear indicator that it’s time to consider switching to a more accessible and responsive 3PL provider.
5. Lack of Responsiveness from Your Provider
A reliable fulfillment partner should promptly address any issues or concerns you raise. If your 3PL fails to respond in a timely manner, it could indicate that your account is not a priority for them, whether due to the size of your business or other reasons.
In an ideal partnership between an e-commerce business and its 3PL, there should be a synergy, where the fulfillment provider acts as an extension of your brand, not a separate entity. If your current provider seems more focused on its own interests rather than working in tandem with your brand, it may be a clear signal that it’s time to consider finding a new and more responsive fulfillment partner.
6. Outgrowing Your 3PL’s Capabilities
There comes a time when your business surpasses the capacity of your current 3PL services. As your order volume grows and evolves from when you initially partnered with the 3PL, you may realize that their capabilities are no longer sufficient to meet your expanding needs.
Tips For Switching Fulfillment Companies Faster
Ask A LOT Of Questions
When partnering with a new fulfillment warehouse, especially if it’s your first experience with a 3PL, don’t shy away from asking a multitude of questions. Even the minutest details matter. During the sales and onboarding process, seek clarifications on any aspect that might be unclear. Your questions will aid in identifying potential bottlenecks and alerting the operations team to address any issues that could impede a smooth transition.
Pro Tip:
Embrace Learning: Don’t feel pressured to be an expert in the fulfillment process. If your new partner uses jargon or introduces unfamiliar processes, don’t hesitate to request further information. It’s absolutely fine not to know everything, and seeking clarity will lead to a better partnership.
Provide As Much Information As Possible To Your New 3PL
The more information you can share with your new fulfillment partner, the better they’ll be able to position you for switching fulfillment companies. Starting during the sales process, tell the 3PL everything, including:
- Special requirements for any sales channels
- Special packing or shipping instructions, including custom boxes
- Number of SKUs you expect to ship
- Typical package size and weight
- What software you’ll need to integrate with the warehouse systems
- Whether your items ship in manufacturer’s packaging or need over boxing
- Your goals for your fulfillment
This is only a partial list. Every brand is different, so share what makes you different with your 3PL up front.
Transitioning to a New 3PL
Deciding to switch to a new 3PL can indeed feel overwhelming, as it requires thorough research and evaluation to find the right fit. Once you identify the right 3PL companies, the actual transition process may appear daunting. However, having a well-structured action plan can break down the process into manageable tasks, making the transition smoother and more organized.
Remember, it is essential to make the move if your current 3PL no longer aligns with your needs, even though the idea of transition might be intimidating. Despite the time and costs involved, you’ll soon realize how this shift benefits your brand significantly. The positive impact on your operations and the improved service will make the investment in the transition well worth it. Embrace the change, and you’ll reap the rewards of a more suitable and efficient 3PL partnership.
Why Partner with Ecom Logistics?
Ecom Logistics is a leading Canadian 3PL providing end to end logistics solutions to North American businesses since 2017. Headquartered at North york, Ontario, equipped with more than 250,000 sq feet of warehousing space and the latest fulfillment technology, we have proved to be a trusted partner for thousands of businesses for all their warehousing and fulfillment needs. We also offer complimentary logistics services such as inventory management, same day and next day delivery, Canadian, US and international shipping options, returns management, LTL freight and much more.
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