When was the last time you evaluated your fulfillment provider? If you’re like most logistics leaders, you probably have reservations about making a switch – even if you’re dealing with service issues, capacity constraints, or inflexible technology. We get it, it’s a big move. The idea of transitioning to a new 3PL can feel potentially disruptive or risky.
But the reality is, changing fulfillment providers is often far smoother than expected, especially when you have the right partner leading the transition.
Why Brands Hesitate to Switch 3PLs
Even if it’s clear that a 3PL isn’t delivering, many brands hesitate to make a change. The most common reasons we hear for this include:
- Fear of disruption to flow of operations: A sudden switch could impact order fulfillment, leading to delays or customer dissatisfaction. Concerns about downtime or delays with retail fulfillment or DTC operations are understandable, but a proactive and experienced 3PL may be able to help you switch over with zero operational downtime. Additionally, the reason you are considering moving in the first place is likely because you are experiencing customer dissatisfaction, downtime, delivery delays, errors in order processing and fulfillment, etc.
- Anxiety about integrating new technology and systems: Brands worry about the challenges of onboarding new technology. From EDI to WMS connections, if you’re switching to a new 3PL that has proprietary systems and an in-house tech team, you won’t have to worry about integration headaches.
- Perceived risk vs reward: If things are running “well enough” it may seem easier to stay put rather than introduce and kind of operational shift. The reality is, if things were running “well enough” you wouldn’t be considering moving 3PLs.
- Loyalty or sunk cost fallacy with current provider: Long-standing relationships with a 3PL – or past investments in a provider’s set up – can make switching feel like an uphill battle. We get that, but it’s more important to factor in long-term costs and to prioritize the future of your business.
- Fear that it’s too costly to move: The fear that picking up and moving your operations to a new 3PL will be too costly in terms of transportation and moving costs, integration, etc. In fact, it’s too costly not to move. You're likely experiencing customer dissatisfaction, which is resulting in damage to your reputation, lost sales, retail chargebacks, missed or delayed shipments, and lost or damaged inventory. The cost to move may seem like a lot in the short term, but it will keep you from continuing to lose in the long term, which is much more costly.
These are valid concerns, but they’re based on the assumption that switching 3PLs has to be painful. The truth? With a structured transition plan, changing fulfillment providers can be a smooth, strategic move that ultimately strengthens your operations.
Signs it's Time to find a new Fulfillment Partner
If you’re experiencing any of the following, it may be time to reconsider your current logistics partner.
- Consistent service issues: Missed SLAs, inaccurate orders, or delays in processing shipments.
- Lack of, or limited omnichannel capabilities: Difficulty managing inventory across DTC fulfillment, retail fulfillment, and marketplace channels.
- Growth or scaling challenges: Rigid processes or systems create obstacles for scaling. Your 3PL should be flexible and agile to support you during peak season, special projects, and periods of growth. Additionally, if your 3PL does not excel at omnichannel fulfillment, you are complicating your efforts or will be working with inefficiencies as you scale into new channels.
- Technology limitations: Outdated systems, lack of transparency, insufficient reporting, or difficulty integrating with your platforms.
- You’re hearing “no” more than “yes”: This is indicative of a lack of innovation within your 3PL. A true fulfillment partner should face challenges and requests with agility and positivity. Motivational is known for our courage to say yes and our determination to deliver.
If these challenges sound familiar, the risks of staying with your current provider may outweigh the risks of switching.
How a Good 3PL Makes Switching Easy
A strong logistics partner doesn’t just manage fulfillment, they provide ample support of the transition process. Here’s how the right 3PL minimizes disruption and accelerates success.
- Project management: Your transition process should be mapped out in a detailed onboarding plan with clear milestones, responsibilities, and risk mitigation strategies.
- Seamless inventory transfer: Whether you’re moving inventory from a single facility or multiple distribution centers, an experienced 3PL will coordinate your warehouse transition strategically – often using a phased approach to avoid downtime.
- Tech and Integration Support: A capable fulfillment partner will handle the heavy lifting when it comes to integrating your order management systems, sales channels, and retail EDI connections. They will also ensure compliance with retail partners and optimization of your order flow across all channels.
- Hands-on onboarding and continuous improvement: The right 3PL doesn’t just get you up and running, they proactively look for ways to optimize your operations from day one. This helps you see value from the transition as quickly as possible.
What to Look for in a 3PL
Not all 3PLs have the experience and agility to execute a smooth transition. If you’re considering a switch, we recommend including the following criteria in your must-haves for a new 3PL:
- Proven onboarding expertise: They should have a structured transition process with dedicated support.
- Seamless tech integration: Make sure your new 3PL has experience with EDI, retail compliance, and omnichannel fulfillment. You'll want seamless integration & order management. Bonus points if they have their own WMS and in-house tech team!
- Scalability and flexibility: The ability to handle your brand’s growth, seasonality, and special projects will be invaluable for transitioning and beyond.
- Data transparency: You’ll want real-time visibility into orders, inventory and performance so you have the data you need to make informed business decisions.
- A true partnership mindset: A logistics team that treats your brand like their own is one that is committed to your success and a true partner for the long-haul.
Final Thoughts: The Courage to Switch, the Confidence to Succeed
Change can feel risky – but staying with a subpar fulfillment provider is often the bigger risk. With the right new logistics partner, making the switch is not just manageable, it’s a strategic opportunity to improve efficiency, enable smooth growth, and deliver a better experience for your customers.
If you’re wondering whether now is the right time to make a move, let’s talk. Our team specializes in seamless, low disruption transitions, and we’re happy to walk you through exactly what that would look like for your brand.
