Things to Look for when Switching Your 3PL

 
The excruciating situation of the COVID-19 global pandemic resulted in an overwhelming increase in the number of online shoppers. Two years into it and we have learnt to live and adapt in the new normal. But back then, eCommerce brands were among the few businesses that experienced a positive impact of the situation.
 
However, the crucial factor for an eCommerce brand to succeed is to fulfill and deliver the orders efficiently. This is as much true for smaller brands as it is for eCommerce giants. In fact, delivery time is of top priority to online shoppers.
 

 
Customer happiness depends on efficient and timely delivery of a product. In fact, on-time delivery has been equated with customer and money. Various online studies and statistics taken on the importance of order fulfillment and customer happiness show the following:
 

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• 13% of shoppers never come back if their delivery is not on time. The same study also says that 95% of consumers prefer free-one-day delivery as their ideal delivery method.
• 66% of customers prefer home delivery to any other type of delivery service
• 70% of those customers are happy with the cheapest form of delivery
• 55% of shoppers prefer same-day delivery to any other time of delivery
• For food delivery services, 58% of consumers don’t want to wait more than 40 minutes for their delivery

 
It can become quite difficult for your brand to meet this level of customer expectation without an exceptional order fulfillment system. It has been observed that many brands have struggled to be in the game without the help of an efficient fulfillment partner.
 
Hence the role of an efficient third-party fulfillment company is needed to relieve you from the anxiety of managing a well-organized delivery system and let you concentrate on maintaining and upgrading the quality of your product. A strategic partnership with the right 3PL company is like a ‘match made in heaven’ that can help you grow as a brand and increase your market share. When the order fulfillment system is handled proficiently, it leaves you with an opportunity to explore and expand your horizon.
 

 
After underlining the importance of an efficient 3PL partner, we also need to understand the consequences you can suffer from the partnership with an unsuitable 3PL partner. The most critical outcome of partnering with the wrong 3PL company is unhappy customers. After all, in the consumer-centric business world, an unhappy customer usually equals no customer within a very short time.
 
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The most essential element of an eCommerce business is to ensure that the delivery is on time, every time. As evident from the data above, it is the crucial element that upsets your customer. However, several other factors disappoint your customers if you have the wrong 3PL partner. For example:

• Bad packaging
• Wrong order sent
• Rude behavior of the delivery personnel

Other factors that you should be concerned about as indirectly affecting the customers are the following:

• Outdated 3PL technology to support the demands of your business
• Your 3PL partner does not share insights with you periodically
• Customer problems or queries are not resolved promptly
• KPIs agreed upon are not met or neglected

All or some of the above factors should work as the red flag for you to start assessing their performance in critical areas such as:

• Transportation and freight management, including claims
• Warehouse management
• Distribution management
• Returns management

The above assessment will furnish you with the required data to make an informed decision whether it is about time to change your 3PL partner, to save and grow your business.
 

 
We understand that it is a difficult decision to change your 3PL because the change also involves finding the right 3PL to partner with. It can be a daunting task and here are some pointers for you to consider before you make the most important decision for your brand:
 
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• See if they understand your vision and respect and align with your goals. They should understand your brand thoroughly and share your goals for both of you to succeed.
• Verify if they have the technological and infrastructural capability to meet your current business requirements and scale up as your brand/business grows.
• Assess how adaptable they are to the growing needs and changes of the consumer-centric world of business. They can only become the ideal 3PL for your business if they share your passion for fulfilling your customer needs.
• Evaluate their return management system, because nowadays customer loyalty is based on how well and how flexible a brand is in handling the returns.
• Review the capability, knowledge, and experience of their team to gauge if you can trust them to handle the most important part of your business efficiently. Check their views on smooth operations.

 
When selecting a 3PL company to partner with, you should always do stringent due diligence on the reputation of the company in the industry. Undertake thorough research or employ professionals for an in-depth exploration of the operations of the 3PL. After all, it is your brand image or reputation which is at stake. Your customers know you and trust you to deliver their products. In the current tough world, you can hardly afford to lose the loyalty of your customers due to an error of your 3PL partner.
 

 
XPDEL is a leading and hi-tech provider of fulfillment and logistics services, that supports both Direct to Consumer (D2C) and Business to Business (B2B) supply chains. We are the trusted eCommerce growth enabler with a mission and focus on helping eCommerce brands to improve sales channels and cost-efficient operations.
 
Our advanced technology provides our customers seamless operational efficiency with real-time tracking of orders, inventory management, demand planning, and accurate forecasting with predictive analysis.