How Long Does Switching a 3PL Take

In the dynamic supply chain management domain, switching third-party logistics [3PL] providers is not merely a transactional shift but a strategic evolution. Companies often find themselves at a crossroads, compelled to reevaluate their logistical alliances to enhance efficiency, cost-effectiveness, and adaptability. Yet, deciding to switch 3PLs is not a one-size-fits-all equation, as the intricacies demand a nuanced understanding of the logistics ecosystem. Multiple crucial factors dictate the duration of transitioning between 3PLs – an endeavor that goes beyond only supply chain operations.

 

Additionally, altering logistics operations or incorporating a fresh 3PL partner incurs staff hours and freight expenses, potentially causing delays in order processing if not executed accurately. However, with a thorough understanding of the process, the switch to a new fulfillment company can be conducted swiftly and with minimal disruption.
 

When to Switch Your 3PL Provider

 

While numerous reasons may prompt you to change service providers, certain crucial warning signs indicate that it’s time to initiate the transition to a new 3PL provider. These indicators include:

 

• Repetitive Errors. While it’s natural to anticipate occasional errors in the supply chain and fulfillment processes, you certainly don’t want a 3PL consistently making mistakes. If they are consistently fulfilling orders incorrectly, shipping damaged products, or frequently causing mix-ups, it’s a clear sign that it’s time to seek out a new 3PL.

 

• Unhappy Customers. If your customers consistently express dissatisfaction with delivery experiences, your 3PL adversely affects your brand reputation. Negative reviews on your website or through word-of-mouth are not what you desire. In such a scenario, exploring an alternative logistics partner is imperative

 

• Inadequate Support System. Besides order fulfillment, effective client and customer support are essential. An efficient 3PL should manage ancillary functions such as returns, refunds, customer care, and overall customer support. It is equally important for them to handle inventory emergencies and offer assistance when required. If your existing 3PL falls short of meeting these requirements, you have to find a more suitable provider.

 

• Outdated Technology. The significance of a robust order management system cannot be overstated. It is the foundation for tracking and monitoring the entire order lifecycle, from reception to processing and fulfillment. Beyond that, choosing a 3PL with a system that seamlessly integrates with your software is crucial. This integration facilitates the effortless creation of packing slips, shipping labels, custom packaging, and the automatic upload of orders.

 

• Lack of Value for Your Investment. The focus here is not solely on the cost-effectiveness of the company’s services but rather on receiving commensurate value for your investment. While cost is a factor, prioritizing top-quality fulfillment services is crucial. If your current 3PL is not delivering on promises related to customer experience, seamless technology, and readily available support, it is a sure signal to switch your 3PL partner.

 
However, despite the warning signs prompting a transition, choosing a slower season in your sales cycle is critical as a logistics partner switching time. Attempting to switch 3PL providers during your peak season is ill-advised. The transition process can span several months or be as brief as a few weeks.
 

Typical Timelines of 3PL Transition

 

The initial phase in transitioning involves identifying the appropriate partner. Allocate several weeks to thoroughly explore various options and meet with potential 3PL partners to determine the most suitable company for your business.

 

Upon identifying the ideal partner, the subsequent stage involves finalizing the necessary paperwork to formalize your service agreements with the new fulfillment provider. The quicker you can review and sign the documents, the sooner you can initiate the onboarding process.

 

The duration of your 3PL transition varies, in part, based on your starting point. Some companies make the switch and become operational in a matter of weeks, while others may take several months to integrate fully with their new 3PL. Your involvement in the process can be the differentiation factor.

 

Tips to Expedite the 3PL Switch

 

Switching from one 3PL to another is quite a demanding and time-consuming task as it is one of the most crucial aspects of your eCommerce business. However, here are some tips to expedite the process while keeping the process seamless:

 

• Adequate Questioning

Ignorance can pose risks when dealing with a new fulfillment warehouse, especially if it’s your initial experience with a 3PL. Ask every conceivable question throughout the sales and onboarding phase, no matter how minor. Your inquiries can pinpoint potential bottlenecks and address issues that impede a smooth transition.

 

• Share Exhaustive Information

The more information you provide to your new fulfillment partner, the more effectively they can prepare you to transition between fulfillment companies. Update the new 3PL provider on your sales channels, any special requirements regarding the packaging of your products or special shipping instructions, the number of SKUs you ship, typical package size, any particular software that has to be integrated with the warehouse, and more.

 

• Clarification of Roles and Responsibilities

For larger enterprises with multiple supply chain management team members, aligning your team’s understanding will facilitate the transition of switching fulfillment operations.

 

• Clarity of Outcome

Communicate a well-defined vision for your ideal fulfillment process before making the switch. A clear logistics plan will also assist you in selecting the appropriate fulfillment partner to bring your vision to fruition. The transition process will be faster if you have clarity on how your fulfillment process should work than if you figure it out on the go.

 

• Faster Product Shipment

You may not always have control over the speed of the initial stock shipment, but there are steps you can take to initiate order fulfillment more quickly. During the transition from one 3PL, while waiting for your previous warehouse to send stock to the new one, consider arranging a direct shipment of merchandise from the manufacturer to new warehouses. It can accelerate the overall order fulfillment process.

 

• Conduct a Test Fulfillment

While fulfilling orders through your existing fulfillment company, you can send stock to your new 3PL. It enables your operations team to dispatch test orders and address issues without disrupting the ongoing order delivery process.

 

• Dedicate Time to Facilitate the Switch

While your 3PL takes on a significant part of the workload in transitioning between fulfillment companies, your active involvement is indispensable. Allocate dedicated staff time to collaborate with your new fulfillment partner, ensuring prompt responses to information requests. Prepare for tasks such as supplying credentials for integrations, inputting SKUs into the 3PL’s system, and generating ASNs for your initial shipments.

 

Conclusion:

Transitioning to a new 3PL is typically a substantial long-term investment, demanding a comprehensive evaluation of your business and order fulfillment processes to identify potential providers. Constantly bear in mind the areas where your previous 3PL fell short to prevent a recurrence with your new partner.

 

Moreover, achieving a seamless transition does not mark the conclusion of the switch to a new 3PL. It is imperative to continuously monitor your new 3PL using key metrics such as inventory-level accuracy, shipping precision, on-time shipping percentages, and shipping revenue. These KPIs are crucial in your operations, as delays in the order fulfillment process can reduce conversions and overall revenue. Employing the right performance indicators to assess your 3PL ensures that you maintain customer satisfaction throughout the process.

 

Connect with us if you are looking for an efficient 3PL provider and accelerate logistics partner switching time.

 

About XPDEL:

XPDEL is a leading hi-tech provider of Fulfillment and Logistics Services on a mission to enable growth for eCommerce companies. We are futuristic in our vision and constantly work on creating technology that helps us meet customer expectations for today and tomorrow. Our wide network of Fulfillment centers enables us to efficiently handle nationwide delivery in the US – same day, next day, and 2-day delivery. Being closer to the end consumer, we deliver much faster than others.