Switching 3PLs? What to know before

Changing fulfillment providers can be stressful. However, sticking with the wrong provider can result in more stress than it's worth. In addition to the long-term damage it can cause to your business in terms of cost and customer trust, you may encounter unexpected disruptions to daily operations that make it difficult to keep up with the competition. If your current 3PL is holding you back, taking action can help you turn a page for better results.

This guide will walk you through the step-by-step process of determining when to switch, what to do before making a change and how to avoid common pitfalls associated with switching 3PLs.

When it's time to make a change

Not every challenge or bump in the road means you should end your 3PL provider relationship. Fulfillment is a complex process, and mistakes do happen. However, if the same issues resurface, you should take a closer look and evaluate whether those mistakes are quietly draining your resources and frustrating your customers. Recurring problems, if not addressed and resolved early on, can lead to high costs and damaged brand reputation.

There are some clear red flags that you should look out for, such as slow delivery times. For example, if you’re frequently paying for expedited shipping to meet promised delivery windows or your customers are complaining about late arrivals, stop and verify that your provider is really doing its best to meet its obligations. Further, if you’re lacking visibility into stock levels and movement, identify whether this is due to the tools and technology your partner provides. There could be better options.

The most clear and important problems to look out for include:

• Lack of scalability: Your growth plans can stall if your 3PL can’t keep up during peak seasons or struggles to support new channels or regions.
• Recurring fulfillment errors: Late deliveries, mispicks and inaccurate inventory updates create frustrated customers and lost revenue.
• High and unpredictable costs: If your rates keep increasing without clear improvements to service or efficiency, you may be paying more than you should.

For a quick and easy evaluation of your fulfillment needs, consider the quiz below:

How many questions did you answer yes for?

• 1-2: You may not need to switch 3PLs just yet, but it suggests potential issues down the road.
• 3-4: You are likely experiencing operational friction that a different 3PL could help with.
• 5+: You are losing time, money and likely customer trust. Strongly consider switching 3PLs.

What to do before switching 3PLs

Transitioning to a new 3PL takes time and requires preparation, but follows a few central steps.

1. Define your non-negotiables. Knowing your current provider's baseline delivery speed, order accuracy, returns processing and customer service levels to ensure that your next provider will be a clear upgrade over your current service.
2. Review your contract in detail. Look for termination clauses, required notice periods and any penalty fees that could impact your timeline or budget.
3. Evaluate your new provider's onboarding process. Do they offer support, integrated technology and timeline guarantees?

Ideally, your new 3PL will provide a migration plan that includes success tracking, milestones, testing and guidance for inventory transfers. Experienced providers will have the onboarding process well-defined and streamlined to ensure a smooth and fast transition.

How to avoid common mistakes

Switching 3PLs is a major operational change, and it’s easy to underestimate some of the challenges involved. 

• Rushing the transition timeline is a common mistake that can lead to inventory bottlenecks and data errors. Building in extra lead time will help reduce unexpected surprises.
• Another common issue is overlooking technology integrations. If the connections between your ecommerce platforms, order management systems and your 3PL’s tech stack aren’t tested and validated, you could end up with missing data and delayed orders.
  • Always test integrations in a sandbox environment before going live to catch potential issues early.
• It’s also important not to ignore the people involved in the transition process. You’ll need support from your 3PL and your internal teams will require training on new workflows and tools.

Providing clear and consistent direction helps eliminate confusion and ensures everyone stays aligned during onboarding.

Cart.com's onboarding experience makes it easy

At Cart.com, we know that switching 3PLs can be a challenge if not handled well. From your first planning call to your first shipped order, our onboarding and customer success teams provide hands-on guidance, clear timelines and dedicated account management. We go the extra mile to help you make the transition smooth and efficient.

Our platform and processes ensure you have real-time data visibility and control from day one, which means fewer disruptions and faster go-live timelines. We also provide role-specific training, detailed guidelines and accessible support so your teams feel confident throughout the entire process.

Whether managing inventory transfers, testing systems or coordinating carrier handoffs, you won’t have to figure it out alone. We are committed to helping you maintain a high-quality fulfillment experience and setting your business up for long-term success.

Choose Cart.com

Switching 3PLs is a big decision, but it doesn’t have to lead to a highly disruptive transition and onboarding; it just has to be handled well. Carefully preparing for your transition and working with an experienced 3PL provider, like Cart.com, can ensure you’ll be quickly positioned to improve your fulfillment operations and deliver a better customer experience.

Are you ready to explore your options? Contact us to request a free consultation and start planning your transition today.