It's Not Me It's You...Saying Goodbye to Your 3PL

Moving 3PLs is not a decision that should be taken lightly however it is one that many businesses make as the cost to stay is so high: often for both commercial and emotional reasons.

Before informing your current 3PL that you're moving on, there are a number of key things you should do:

• Review Contractual obligations: Review your contract with the 3PL (Third-Party Logistics) provider to understand any terms and conditions related to termination or notice periods. Ensure that you comply with the contractual requirements to avoid any legal issues.

• Review Service performance: Evaluate the overall performance of the 3PL in terms of service quality, reliability, and responsiveness. Consider factors such as on-time deliveries, order accuracy, customer complaints, and communication effectiveness. Identify any persistent issues or areas of improvement that have not been adequately addressed.

• Source an Alternative 3PL: This is an important step and can be done in a very confidential manner to avoid your current 3PL finding out you are getting quotes. This is where Find a 3PL can assist or for more assisted sourcing of a 3PL you could use Andrew at www.omnigrowth.com.au

• Transition planning: Develop a comprehensive plan for transitioning from the current 3PL to a new provider or an in-house logistics operation. Define the timeline, roles and responsibilities, data migration process, and necessary communication channels. Minimize disruptions to your supply chain during the transition and ensure a smooth handover of responsibilities.

• Inform your Customers: customers are very understanding as long as you don't surprise them in a negative way. Ensure you let them know that there may be some delays as you transition warehouses. Most won't mind and you can manage the exceptions manually.

• Monitor the Pack Up: Unfortunately a lot of 3PLs don't show a lot of care when packing up an ex-customers products. This can lead to delays inbounding stock at the new 3PL as well as higher costs. It's important that you not only have a transition plan but that you ensure the 3PL adheres to your agreed expectations.

Remember, this is a general list of considerations, and the specific circumstances of your business and relationship with the 3PL may require additional or different factors to be taken into account.