Third-party logistics (3PL) companies are designed to allow e-commerce brands to outsource their fulfillment processes. They are meant to help with fulfillment processes such as order processing, warehousing, and managing returns. But what happens when your 3PL starts to hinder your business more than help it?
If the 3PL you have partnered with can no longer meet your fulfillment needs, it can be disastrous for your e-commerce business. Continuing to work with an inappropriate 3PL provider can create a slew of problems, including higher order processing time, costlier fulfillment, delivery delays, and customer dissatisfaction. Fortunately for you, we know from years of experience what to look out for.
Seven Signs It’s Time to Fire Your 3PL
Your 3PL provider is failing to fulfill orders properly
If your orders are not efficiently fulfilled, customer dissatisfaction will likely increase, and you will lose them to your competition. Indeed, research has shown that 51% of customers will never purchase from a brand again after just one poor customer service experience.
Your 3PL lacks an efficient inventory management system (IMS)
Inventory management keeps track of inventory, which is essential in ensuring inventory accuracy and maintenance of sufficient inventory to prevent stock-outs and overselling. If your 3PL is failing to manage your inventory efficiently, you’re likely losing out on sales and revenue.
Your 3PL is leading to bad reviews and unhappy customers
Ultimately, it is your 3PL who will pick, pack, and ship products and handle the returns process. If your customers are unhappy then, your 3PL is likely to blame.
Your 3PL lacks cost-effective shipping strategies
Shipping strategies that focus on cost savings help e-commerce brands increase their profit margins. If your 3PL is not utilizing cost-effective shipping strategies, it might be time to let them go.
Your 3PL’s return process is complicated and costly
A complex returns process can significantly cut into your profits. If the returns management system is not seamless, it will displease customers and damage your brand’s reputation.
Your 3PL has a complicated pricing structure
A complicated pricing structure full of deductions you cannot understand is certainly a red flag in a 3PL. You should be able to know exactly what you are being charged for, with no hidden costs.
Your 3PL is not scalable enough
If your 3PL cannot fulfill your increased order volume as your business expands, it is certainly time to let them go. An unscalable 3Pl provider will not be able to cope with increased order numbers, which can lead to storage issues and delays in order delivery.
Where Do We Come In?
Where does Full Throttle Fulfillment Solutions come in? We have nearly two decades of experience in the e-commerce industry, and we understand better than anyone the importance of running a smooth fulfillment process. At Full Throttle Fulfillment Solutions, our promise to you is seamless integration with your system, efficient order fulfillment and inventory management, positive reviews and happy customers, cost-effective shipping strategies, a simple and easy returns process, transparent pricing, and a 3PL that is equipped to grow alongside you.
Contact us today to learn more!