Skip to content
Cart.com Blog

How did your 3PL handle peak season? Here’s how to know it’s time to change providers

Dec 17, 2024 - Doug Shaffer
Share this on

Related Fulfillment Posts

Dedicated fulfillment site takeover white paper

Learn how to streamline commerce operations with a dedicated fulfillment site takeover

Read more

More from Cart.com

Draper James selects Cart.com as its omnichannel fulfillment partner

Cart.com’s proprietary software, nationwide network of omnichannel fulfillment centers and apparel expertise to support leading Southern lifestyle brand

Read more
Peak season performance: Signs it's time to switch your 3PL | Cart.com
8:46

 

Peak season has always been challenging for businesses, but it's no longer confined to a few frantic weeks in December. Retailers and ecommerce brands now face a prolonged peak season, with promotions starting as early as October and stretching well into January.

This extended timeline creates more pressure on supply chains, forcing companies to evaluate whether their 3PL provider can handle increased expectations. If your 3PL struggled to manage your inventory, meet increased demand or keep customers happy this year, it might be time to rethink your partnership.

In the following sections, we'll explore the signs that your 3PL didn't measure up and how to find a better-equipped provider for your organization's future.

The growing demands of peak season

Peak season is no longer just a sprint – it’s a marathon. Promotions like Black Friday and Cyber Monday have expanded into multi-week campaigns, driving high order volumes.

This expanded window means:

  • More inventory to manage
  • Tighter delivery windows
  • Rising customer expectations

Today’s customers demand speed, accuracy and visibility, expecting their orders to be processed quickly and with frequent updates. Meanwhile, businesses need their 3PL to forecast demand accurately and scale operations to meet surges.

A 3PL that doesn’t keep pace with these growing demands risks bottlenecks and customer dissatisfaction. Your 3PL should be more than just a service provider; they should be a strategic partner capable of navigating the complexities of modern peak seasons along with your year-round operations.

If they fell short this year, the following signs can help confirm whether it’s time for a change.

Inventory mismanagement left your team scrambling

Inventory management is the backbone of successful order fulfillment, especially during peak season. If you dealt with stockouts, overstocking or incorrect inventory counts, your 3PL’s system may be to blame. Poor inventory visibility often leads to lost sales and increases carrying costs, impacting your bottom line.

For example, a lack of real-time inventory tracking might mean you sold items online that were already out of stock, leaving customers frustrated and forcing you to issue refunds. Alternatively, overstocking due to inaccurate demand forecasting can leave you with excess inventory that ties up capital and storage space.

The best 3PLs use advanced warehouse management systems (WMS) that provide real-time inventory visibility and predictive analytics. If your provider relied on outdated tools or manual processes, it’s a sign they aren’t equipped to handle your business’s growth.

better fulfillment starts with better software banner

Inadequate labor to handle surges

When peak season hits, sales volumes can soar past the most optimistic forecasts. If your 3PL lacked the labor or expertise to scale quickly, you probably experienced delays and bottlenecks in your operations. Untrained or insufficient staff can lead to picking, packing and shipping errors, resulting in critical failures during the busiest time of the year.

For instance, imagine running a flash sale that exceeded expectations, only to find that your 3PL couldn’t hire and train enough seasonal workers to meet demand. Orders piled up, and deliveries missed their promised dates, leaving customers dissatisfied.

A top-tier 3PL has flexible staffing models and a proven track record of handling seasonal spikes. They should be able to bring in skilled temporary workers and ramp up operations seamlessly. If your 3PL’s labor strategy couldn’t keep up, it’s time to look for a partner with more robust capabilities.

Lack of modern technology

Outdated systems are a major liability during peak season. If your 3PL relied on spreadsheets or disconnected tools, chances are you faced issues like order errors, delays or limited visibility into your operations. Modern technology is essential for streamlining processes and providing the real-time data businesses need to stay competitive.

For example, integrated order management systems (OMS) can track every order from the warehouse to the customer’s doorstep, ensuring accuracy and transparency. Similarly, advanced analytics can predict demand patterns and optimize inventory placement, reducing the risk of stockouts.

If your 3PL’s tech stack couldn’t deliver these capabilities, you likely spent too much time chasing updates or fixing errors. A modern, tech-enabled provider can offer the visibility, accuracy and speed you need to thrive during peak season.

Slow order processing created backlogs

Handling the rush of peak season demands speed, precision and efficiency. When a 3PL can’t keep up, the consequences ripple across your operations. Delays become inevitable, impacting customer satisfaction and potentially leading to negative reviews. If your warehouse was overwhelmed by orders but your 3PL’s outdated workflows or insufficient staffing caused bottlenecks, you likely faced delivery delays and higher error rates. A rushed team is prone to mistakes, compounding the issue and creating a poor customer experience.

An effective 3PL prioritizes speed and accuracy, leveraging automation and optimized workflows to keep orders moving seamlessly. If your provider struggled to maintain efficiency during peak season, it’s a strong signal to explore partners that can scale operations and deliver results under pressure.

Poor communication left customers in the dark

One of the biggest frustrations for customers is a lack of communication about their orders. If your 3PL didn’t provide real-time updates or tracking information, you likely dealt with a flood of inquiries and complaints during peak season.

Customers expect to know when their orders shipped, where they are and when they will arrive. If your 3PL failed to provide this level of visibility, it likely damaged your reputation and strained your customer service team. Look for a 3PL that offers automated notifications and transparent tracking tools. These features improve the customer experience and reduce the burden on your support team, freeing them up to focus on more complex issues.

Partner couldn’t adapt to the expanding peak season schedule

The modern peak season isn't just longer – it's more unpredictable. If your 3PL struggled to adapt to sustained high volumes or unexpected demand surges, it's an indication they're unable to meet today's challenges. For example, some 3PLs treat peak season as a one-time spike rather than a prolonged period of increased activity. This reactive approach often leads to burnout, inefficiencies and missed opportunities. A better provider will have scalable solutions and long-term strategies in place to handle extended busy seasons.

If your 3PL didn't anticipate the unique demands of this year's peak season, it's time to find one that's more proactive and forward-thinking.

3PL isn’t acting as a strategic partner

A great 3PL should feel like an extension of your team. If your provider only offered reactive solutions rather than proactive planning, they likely fell short of being a true partner during peak season. For instance, did your 3PL collaborate with you on demand forecasts or warehouse optimization? Did they suggest improvements to your supply chain strategy or provide insights based on their experience?

If not, you missed out on valuable expertise that could have helped you navigate peak season more effectively. A strategic partner doesn’t just fulfill orders – they help you plan for growth and mitigate risks. If your 3PL lacks this level of engagement, it’s time to consider a provider who prioritizes your success.

Partner with an experienced and dependable 3PL partner

Peak season can make or break a business, and your 3PL is critical to your success. If your provider struggled with:

  • Inventory management
  • Labor shortages
  • Outdated technology
  • Slow processing
  • Poor communication
  • Adapting to the expanding peak season

It's a clear sign it's time for a change.

As you evaluate your options, look for a 3PL that combines modern technology, scalability and a commitment to being a true strategic partner. The right provider can help you confidently navigate future peak seasons and ensure your customers stay happy, no matter how busy things get. Contact our team today to learn how Cart.com's 3PL services can help you navigate the upcoming months and next year's peak season.