3 Signs It’s Time to Change Your 3PL

Change is hard. Whether it’s a new house or a new boss, every time there’s a change in our life the ripple effect is something that can be hard to pinpoint.

But if your third party logistics provider (3PL) isn’t the right fit for your business anymore, a change is inevitable. And there’s no use continuing to hurt your business by not making the changes you need. Let’s discuss three very clear signs it’s time for a big change:

1. High Rate of Attrition

One of the biggest disruptions to any business is the rate of employee turnover. We aren’t simply referring to employee training costs. We mean the disruptions caused when a fully trained employee jumps ship.

If your 3PL is losing employees left and right, it might be time for you to start looking elsewhere. This phenomenon points to bigger issues within the organization, like a bad boss, poor management or lack of employee advancement.

Here’s the other kicker: happy employees are more likely to represent your brand well. Someone who enjoys their job will spread the joy to your customers.

That’s why Zappos shoes offers their customer service employees a $1,000 bonus to quit after training. Their unique plan helps retain only people who want to be there.

2. Impediment to Business Growth

As your business grows, you need a 3PL who can keep up with you. Your 3PL needs to be offering innovations and solutions that keep your company at the forefront of technological changes too.

For example, if you want to offer same-day shipping for the Holidays, you need a 3PL who has the ability to meet your needs. If they simply don’t have the employees or organization to meet your request, it may be time to start reassessing.

Likewise, if you want to maintain a boutique setting with personal customer interaction, a 3PL that focuses on large corporate clientele might not be the right fit for you. So, don’t let your 3PL keep you from growing exactly the way you want to.

3. Repetition of the Same Mistakes

We all make mistakes. It’s not unusual for some changes to take time. However, when your 3PL continues to make the same mistakes, it’s time for you to consider if the 3PL is still the best fit for you.

This applies specifically to customer complaints. If a packaging strategy is wrong and you communicate the need for a change, your 3PL needs to help you accomplish that goal. Otherwise, you risk losing hard-earned customers for no good reason.

At the Same Time, be Fair and Reasonable

Keep in mind that only you can decide what constitutes continued mistakes. We would never suggest that an immediate change be initiated, but missing key measures for more than six months in a row may constitute an executive review.

In other words, pay attention to how your business is affected by your 3PL. Should you find that too many negative percussions are resulting from their services, it just might be time for a change. And sometimes, while painful, change is good.

If you need an apparel 3PL company with a proven track record, contact The Apparel Logistics Group and let us know how we can help.

Posted: 11/8/2013 5:32:27 PM by Global Administrator | with 0 comments

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