Peak season is one of the most demanding and exciting times of the year, and the warehousing, fulfillment and logistics partner you work with can make or break your business’s success during this crucial time. As we exit this season and take a collective breath, we encourage you to take stock of your 3PL’s performance this season.
Below, we’ll guide you through the key performance areas and metrics we recommend using to assess your 3PL. We’ve also created a handy downloadable Peak Season Scorecard to collect all your data in one place, allowing you to see at a glance whether your 3PL met your standards—or whether it might be time to consider other options.
For each of the metrics below, we recommend taking your 3PL’s warehousing, fulfillment and logistics data into account, and then ranking your satisfaction for each on a scale from 1-5, with 1 being “not satisfied at all” and 5 being “extremely satisfied.” Our downloadable scorecard includes industry benchmarks for each category, allowing you to see where your 3PL meets, exceeds, or falls short of expectations.
Order Fulfillment
First and foremost, your fulfillment partner is responsible for order fulfillment. But this doesn’t just mean that orders get shipped out—it means getting orders processed efficiently and accurately and shipped out complete and on time.
- On-Time Order Processing Rate (%)
- Order Accuracy Rate (%)
- Percent of Orders Shipped Complete and On Time
Inventory Management
Inventory moves quickly during peak season. Having a real-time, accurate view of where your inventory stands is critical to ensuring you don’t run into issues with under- or over-stocking.
- Inventory Accuracy & Visibility (%)
Warehouse Efficiency
Warehouse operations play a large role in the speed, efficiency, and accuracy of order processing. Take a look at metrics like the accuracy of the warehouse’s pick & pack and the average length of an order cycle to better understand how efficient warehouse operations are.
- Pick & Pack Accuracy (%)
- Order Cycle Time
- Utilization Rate of Warehouse Space (%)
Tech
The last thing you need during the busiest time of the year is for the tech to go down. Were there any tech outages or slow-downs this season that kept or delayed your 3PL from fulfilling orders or kept you from being able to have an accurate view of product movement and inventory? If so, you'll want to make sure you work with a 3PL partner who has reliable freight tech by next peak season.
- Uptime
Transportation & Delivery
Just because products left the warehouse on time doesn’t mean they got delivered on time. Take a look at how the transportation and delivery phase went. What percentage of your orders were delivered on time?
- On-Time Delivery Rate (%)
Value-Added Services
Your 3PL should recognize that each customer’s needs are unique. Does your 3PL offer value-added services and specialized support to ensure each customer is taken care of, especially during peak season. How did your fulfillment partner perform in this area?
- Ability to complete product rework and refurbishment
- Ability to kit for orders
- Ability to create display designs and complete assembly
- Ability to source packaging for your products to optimize shipping costs
- Ability to complete ticketing and labeling for you in compliance with retailer standards
Customer Service
How well were your needs responded to during this season? Your customers’ needs? Even when everything goes according to plan, responsive, easy-to-reach customer service is a must.
- Customer Service Responsiveness
- Dedicated Account Manager
Reverse Logistics (Returns)
Returns happen. Hopefully, they go smoothly. Was the average return processing time efficient or drawn out? And, when possible, was your 3PL able to refurbish and repack eligible products for resale?
- Return Processing Time
- Able to refurbish and repack for resale
Gain insight into your 3PL’s overall peak season performance by evaluating each of the key performance areas and metrics above. This can help you pinpoint areas of satisfaction and dissatisfaction—either leading to productive discussions about necessary improvements or giving you a starting point in your search for a new 3PL.
Download your Peak Season Scorecard here and, if you find yourself in the market for a new 3PL, let’s talk.
