Switching To 3PL: A Complete Guide

Table Of Contents:

  1. Introduction 
  2. What Is A 3PL
  3. When Do You Switch 3PLs
  4. Things To Consider For A New 3PL Partner
  5. How To Make A Smooth Transition
  6. Meteor Space Can Be Your Ultimate 3PL Solution
  7. Switching 3PLs FAQs 

Introduction

In the past, retail businesses have always been an outsourcer of inventory. In other words, they would have to find products to sell, find a buyer, find the right warehouse and finally, even after all of that, they would have to find a process to ship the items. 

This process is time-consuming, costly and inefficient. That is no longer the case. With the use of technology and with the rise of ecommerce, businesses now have the option to switch to a 3PL. One of the biggest reasons companies switch to 3PLs is to save money on inventory. 

In addition to saving money on inventory, a 3PL can also save time on shipping, as well as save costs on warehousing. With the rise of ecommerce, 3PLs also have the opportunity to add fulfillment services to their portfolio.

For organisations that have had a long time working with a 3PL, it can be a challenge to switch to a new one. However, it is possible to switch, and this guide has you on the right path. When you’re in the process of switching your 3PL you’ll have a lot of questions. We’re here to help. Through this guide, we’ll take you through the process of switching your 3PL and answer the most common questions you’ll have. 

If you have additional questions, please feel free to reach out to us. 

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What Is A 3PL

A 3PL (Third Party Logistics) is a logistics provider that can be hired or used for outsourcing by a company or organisation. They are independent of the company they are supplying and are responsible for picking, packing, and shipping the goods they are handling. 

The company or organisation is responsible for tracking the goods throughout the process and ensuring that they are handled and shipped correctly. They are also responsible for paying the 3PL and providing them with the appropriate documentation.

There are many differences in the 3PL industry. One of the things that sets leading 3PLs, like Meteor Space, apart from other providers is that they take care of the entire supply chain for your company. 

Here at Meteor Space, we manage the entire supply chain for your business to make sure you don’t face any issues!

When Do You Switch 3PLs

Not Being Able To Grow And Expand 

As a retail business or organisation, you have the opportunity to expand your business over time. The more experienced and advanced 3PLs you work with, the more work you can offer and the more money you can make. However, switching 3PLs can be a very difficult decision to make. 

The most common reason for switching 3PLs is that you’re not able to grow and expand. You may not be able to get the services or flexibility from your current fulfillment operation to help you take on more work at your current location or you may not be able to grow and expand your business. 

When it comes to customers, the expectations for the service they receive are always changing. It is essential that you work with a 3PL that can keep up with your customer demands and provide top-notch customer service. If your 3PL cannot grow and evolve with your business, it is time for change. 

Messing Up Orders Frequently

One of the major reasons to switch to a 3PL is that you might be dealing with orders that are getting messed up frequently. The mess-ups create a lot of headaches for your employees, and they make the customers angry. If you have been dealing with these issues and they are getting worse and worse, it might be time to switch to a 3PL. 

It is crucial that your order fulfillment is always accurate. If your customers don’t receive the correct orders it can drive them away and they will not return to your business to shop from you again. Working with a 3PL can help you reduce the risk of such errors, which is why switching to 3PLs can be beneficial for your business. 

Need Improved Support

When trying to decide whether to switch your 3PL or not, one of the main reasons is support. You need better support than what you’re currently receiving from your current 3PL. You should take the time to decide what you want. 

  • Do you want to be able to call the 3PL 24 hours a day? 
  • Do you want to be able to talk to your 3PL over the phone? 
  • Do you want to be able to talk to a live person or are you fine with just email? 
  • Do you want complete visibility and insight into all the fulfillment operations? 

All of these questions should be asked before you make your decision. There are many ways that a 3PL can be a great help to a business, but not all are meant to be a full-time partner. 

A 3PL that provides the best support is going to help you meet your goals, and you’ll be able to enjoy your time with your 3PL. If you’re running a business, you need to be able to rely on your 3PL to help you meet your goals and transitioning to a more experienced 3PL might be able to help you with that. 

Need For More Advanced Technology 

As your company grows, you may need to expand your 3PL operations and that means a new 3PL. But why switch to a new company? There are a few reasons why you might want to switch to a new 3PL. The most common reason is that your current 3PL vendor is not keeping up with the technology. 

They may have slow response time or a lack of advanced software. Additionally, they may not have the necessary resources to handle your growing business. A new 3PL will be able to offer you the advanced software and resources necessary to keep up with your growth. 

Many of the leading 3PLs have the ability to scan your shipments and inventory them in real time. This means that you’ll be able to have a live view of your materials, which will make it easier for you to manage your inventory. Plus, you’ll be able to track inventory in real time, which will help you to avoid over-ordering and over-stocking.

You Have Outgrown Your Current 3PL 

Switching to a new 3PL is something that many businesses do. It may be that the current 3PL is no longer able to service the volume that the company needs. Before you make the switch, it is essential that you understand the areas in which your current 3PL is lacking. 

You should also analyse why your current 3PL is no longer able to service your company. Once you know how your company has outgrown your current 3PL, you will have a better understanding of the features and services you want to look for in your next fulfillment partner. 

Not Getting Your Money’s Worth

New 3PL’s offer a lot of benefits to businesses. There are a lot of reasons why a company would need to switch from their current 3PL. One of the more common reasons is that your current 3PL is not getting your money’s worth. 

It is not that the 3PL is not performing, but rather that they are not offering enough benefits to offset their prices. One of the biggest benefits of switching to a new 3PL is the cost savings. You will be able to save a lot of your costs and expenses on the fees of your 3PLs. 

Another benefit is that your new 3PL will be able to offer more services than your old 3PL. This will give you an additional way to save money. Getting a leading 3PL, like Meteor Space, to carry out order fulfillment for you can help you save money and invest it in other areas of your business.

Things To Consider For A New 3PL Partner

Scalability

As you decide to partner up with a 3PL, you have to consider how your business will scale. Your 3PL partner will have to have the resources to provide your company with the services that it needs in the future. 

This means that you need to get a sense of how much work your 3PL company will be able to handle in the future. One thing to keep in mind is the different types of service that your 3PL partner offers. 

Will it be able to handle the same types of services that you will be providing your customers in the future? If not, this could be a deal breaker.

Technology

The technology your 3PL partner offers will be a big factor in your decision. Most 3PL partners offer CRM and inventory management software, which can be very helpful to the business. However, they don’t always offer the same technology, so it’s important to check out the full list of features before deciding on a partner.

Some of the things you should take into account are the extent of their technology and the availability of technology that matches your needs. Find out what types of technology they have, such as advanced software, warehouse management systems, and supply chain management.

Reach And Locations 

When you choose your 3PL partner, you have to make sure that they have a great reach and ideal location. You may be wondering what is meant by reach, and that is the scope and diversity of the shipping options they can offer. Their location is where you are physically located. 

You want your 3PL partner to be able to reach your clients and vice versa. You don’t want to work with a 3PL that is restricted to one location or country and can’t help you deliver products to customers in diverse locations. 

Cost

One of the most important factors for a 3PL to consider is cost. All 3PLs can provide similar services, but the cost of each service will vary slightly. In order to determine the cost of a 3PL, you need to consider a few things. 

First, you need to consider the number of customers you will have. Each 3PL has different levels of service and price points that are based on the number of customers they have. Second, you need to determine the cost of the service. 

Some 3PLs have a wholesale price, while others charge a fixed rate. Finally, you need to find out the total cost of service. You need to include the initial cost, the cost of usage, and the cost of any equipment that is needed.

How To Make A Smooth Transition

Keep Your Customers Informed

To make a smooth transition to a new 3PL, you should do your best to keep your customers in the loop. As a top business, you must let your customers know that you are shifting and going through some logistical changes, so even if there are any problems they can understand what might have caused these problems. 

Figure Out How You Will Move Your Inventory 

Having a plan is a must. Before you start working with a new 3PL, you need to come up with a solid strategy that can plan your entire move. You should know how and when to move your inventory, making sure that your transition does not cause any disruptions in your supply chain and lead to issues with your timely order fulfillment for customers. 

Make Use Of Your Old Fulfillment Centre Or Warehouse

Do not try to rush your move! It is okay for you to take your time with your old 3PL or warehouse and you can keep your supplies stored there for longer. When you are in a hurry to move all your supplies and inventory to your new 3PL, it can lead to errors and cause problems for your efficient order fulfillment operation. You should store your supplies in your old warehouse or 3PL centre and move them at a normal pace. 

Keep Your Supply Chain Operations Running Smoothly 

It is essential that you stay as organised as possible during your switch. You can take help from your new 3PL partner and develop a strategy for the move that can help you streamline all the steps and processes involved. When you streamline the entire transitioning process, you can make sure that all your supply chain operations continue to run as smoothly as possible and you don’t face any disruptions.

Meteor Space Can Be Your Ultimate 3PL Solution

 When you’re looking for a 3PL partner, there are a few things you’ll want to consider. It’s important to start by understanding your business and what you need your 3PL to do.  

At Meteor Space you can choose from a broad range of services, such as pick and pack services, logistics and transportation, warehousing, and more. You can also choose from a wide range of packages and select the one that fits your costs better. 

If you are looking for a 3PL partner, Meteor Space can be your ultimate solution. We have been around for years and our state of the art fulfillment center is designed to streamline the 3PL process. This means that you can focus on your business and not be concerned with the fulfillment process! 

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Switching 3PLs FAQs

A 3PL, or third-party logistics provider, is a company that provides warehouse and distribution services for companies who do not have their own warehouse or distribution facilities. The services include picking, packing, receiving, warehousing and shipping. A 3PL can also have their own or operate their own warehouse facilities. They are not involved in the manufacturing process. 3PLs are usually employed to lower business costs and ensure quality shipments to customers.

When you are an established business, you might decide to switch 3PLs at some point. This might be because you want to grow your business and you've realised that your current 3PL is unable to meet your needs. However, there are many reasons why you might want to switch 3PLs. It might be because:

  • Your current 3PL is not able to provide you with the services you need. 
  • Perhaps it's not as good at meeting your specific needs. 
  • It might also be because you're not satisfied with the service you're getting. 

Whatever the reason for switching 3PLs, it's important that you do it the right way. That means you want to make sure you have the entire transition perfectly planned in a way that doesn’t lead to you having to halt your business or facing supply chain problems.

When looking for a 3PL partner, there are certain things to consider. It is important to consider the scalability of the 3PL partner. If you have a larger company with a lot of products, you should consider a larger 3PL partner. On the other hand, if you have just a few products, you should consider a smaller 3PL partner. 

In addition, it is important to consider the 3PL partner’s flexibility. You should consider a 3PL partner with a flexible pricing model. Finally, it is important to consider the 3PL partner’s current backlog. A 3PL partner with a backlog that is too small may be a bad fit for your company.

When you are an ecommerce business, managing your inventory is one of the most important aspects of the job. One of the main reasons that people switch 3PLs is because the inventory management system is not working. Having a 3PL is a huge asset, but the efficient inventory system that they can provide is what makes it worth it. 

There are many things that you can do to avoid messing up with your inventory. One of the best things that you can do is to take inventory counts on a regular basis. If you don't take inventory counts, you might be surprised when a lot of items are missing. Another way to avoid messing up orders is to work with an inventory management system that is integrated with your POS. If you don't have this option, you can use a manual system to help manage the inventory. 

The last thing that you should do to avoid messing up orders is to have a good customer service and sales team. All of these features can be provided to you by a leading 3PL, like Meteor Space, so you don’t have to worry about messing up order fulfillment frequently.

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