The Price of Sticking with the Wrong 3PL Partner

Blog header: The price of working with the wrong 3PL along with photos of warehouse workers

What happens when you’ve outgrown your 3PL? Maybe they can’t handle your growth, they’re too slow, too expensive, or simply out of sync with your goals. Sticking with the wrong 3PL partner can lead to major inefficiencies, rising costs, and frustrated shoppers.

The wrong 3PL can be catastrophic to the brand. It could certainly cost
[you] a ton of money.

Matthew Hertz

Is it time to rethink your 3PL?

Consider this: almost 75% of shoppers won’t return after three or fewer bad customer experiences with a brand. And if your 3PL can’t keep up, your brand takes the fall.

Questioning if you’re working with the wrong 3PL can be a daunting task. It might seem overwhelming, but we’re here to make it easier. We’ll outline how to assess potential partners, tips for switching without stress, and four real-world examples of brands that made the switch to GoBolt and thrived.

Wrong 3PL? Why Reassess Your Current Provider

Your 3PL should be more than just a service provider, they need to be a strategic partner that drives efficiency, growth, and shopper satisfaction. 

Here are four red flags that signal it might be time to make a change:

  1. Limited Scalability: If your 3PL can’t keep pace with your growth, it’s a recipe for delays, inefficiencies, and missed opportunities – all of which can derail sales and hurt your bottom line.

  2. Higher Costs Without Value: Have you been hit with rising costs and no tangible improvements in service or efficiency? This could mean you’re likely overpaying for services that no longer fit your needs.

  3. Misalignment with Business Goals: If your 3PL isn’t adapting to your growth or aligning with your vision, they are limiting your potential. The right partner will feel like an extension of your team.

  4. Lack of Sustainable Practices: Today’s shoppers expect brands to care about sustainability, and your logistics partner can either hinder your goals or be an ally to your efforts to reducing your emissions.

A GoBolt 3PL warehouse employee walking through the warehouse preparing for ecommerce peak season

How to Evaluate a 3PL Partner

What should you consider when deciding if your 3PL is still the right fit for your business?

Logistics expert Matt Hertz captures the challenge perfectly:

“I see a huge opportunity, and frankly, a gap in the market for solving scalability for growing brands. When a smaller brand joins a 3PL while doing 100 orders a day, they often find that as they grow to 1,000 orders a day, things start to break”

To avoid this scenario, it’s crucial to find a logistics partner that grows with you, not apart from you. Consider the following when evaluating your next 3PL:

  1. Scalability and Flexibility
    • Can they handle your growth, your sales peaks and valleys?
    • Can they support you scaling into new markets?
    • Do they have a fulfillment network in or near your key markets?

  2. Alignment with Your Values and Goals
    • Does the 3PL understand your growth plans?
    • Do they offer flexible solutions tailored to your needs?

  3. Pricing and Operational Efficiency
    • Are their rates competitive without compromising quality?
    • Do they offer the fulfillment and last mile delivery services that you and your shoppers are looking for?
    • Do they provide data transparency and performance reporting?

  4. Commitment to Sustainability
    • Look for green initiatives like prioritizing electric vehicles and carbon reduction programs through their last mile delivery.

Tips for Switching 3PLs Without the Headaches

Switching providers doesn’t have to be a logistical nightmare. But it is critical to take the right steps. 

Follow these steps to make the transition smooth:

  1. Audit Your Current Operations: Identify pain points with your existing provider and set clear goals for what you need from a new partner.

  2. Communicate Early: Inform stakeholders and supply chain partners about the transition to minimize disruptions.

  3. Start Small: Begin with a phased approach, transitioning a portion of your operations first to test the waters.

  4. Leverage Technology: Choose a 3PL with integrated systems that simplify onboarding and data migration. Read more here about GoBolt’s tiered onboarding approach and how it sets the foundation for success.

  5. Collaborate Closely: Work with your new provider to develop a detailed implementation plan and timeline.

Check out these tips on the importance of vetting a 3PL before making the switch:

Case Study: Why These Retailers Made the Switch to GoBolt

 
  • Leading Apparel Retailer Needing Better Tech and Affordable Pricing

Their former 3PL had outdated tools and processes and pricing which prevented the brand from scaling. Enter GoBolt. Since launching, they’ve shipped over 30k units at a reduced cost to ship per order and are now confident enough to increase their marketing spend. 

  • Footwear Retailer Seeking Scalability and Modern Solutions

Their 3PL lacked the tools required for scale, leaving the brand unprepared for rapid growth. With GoBolt’s tech-forward approach, the brand experienced double-digit growth, while reducing their fulfillment and shipping costs. 

  • Personal Care Brand Overcoming Limited Coverage and High Costs

This brand faced issues with fulfillment speed and high postage rates. Since partnering with GoBolt, they’ve shipped over two million units while cutting postage costs by 33%.

  • Electronics Brand Expanding into New Markets Efficiently

Entering new markets was challenging with their former 3PL. However, once they made the switch to GoBolt’s multi-location network, the brand’s volume exploded, while simultaneously reducing their time to fulfil and transit times.

Why GoBolt?

GoBolt is more than a 3PL — we’re a partner that helps you scale with confidence. Whether it’s reducing costs, meeting sustainability goals, or expanding into new markets, our tailored solutions make logistics simple.

Let’s talk about how we can help your brand grow. Contact us today.

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