Making a major business decision like switching to a new 3PL provider is not easy. It can be difficult depending on how much of your business is tied into your current 3PL. However, when done correctly, and for the right reasons, it can be a painless process that can help propel your business to the next level. Why should you consider switching 3PLs?
Reasons to Switch:
You need a turnkey solution – Businesses change over time, and with change, new services may be required. Maybe you want to ship to new areas and need a 3PL with a larger reach. Or, maybe you are interested in outsourcing your kitting process. If there are services you need, and your current 3PL cannot provide them, then switching 3PLs may be your best option. In order to keep moving forward, you need a 3PL partner who can customize services for you and adapt to ongoing changes in production.
You need help scaling – You need to have room for your business to grow and being with a 3PL that can help with scaling is vital. A partner who knows how to optimize your processes in a cost effective solution. As demand for your product increases, you will need a 3PL that can match that growth by providing more warehouse space and keeping up with increased order volume.
You need technological capabilities – The technology systems put in place at your 3PL need to be up-to-date and have the capability for large shipments with the flexibility for small shipments. You will want to work with a 3PL that can provide live inventory data. This additional visibility provides insight into how fast your products are turning over. Also, a warehouse management system needs to be compatible with your companies’ systems, otherwise you could be losing money by overstocking the warehouse and having to pay for the space or understocking and delaying when you can fulfill certain orders.
How to Switch Effectively:
When you are ready to make the switch, it should be done at a slower time of year for your business. Communication is key, and a plan should be established with specific goals or integrations, and your new 3PL provider should provide you with updates on the implementation. Once completed, a meeting should be held on the success of the implementation and whether there are areas to improve upon.
Evans Distribution Systems works with clients in a variety of industries, and with our 90 years of experience, we are able to customize a solution for you. We provide value added services, packaging and kitting, quality inspection, fulfillment and so much more. For more information on how we can help your business scale, check out our Floyd case study. Or, you can request a quote for a customized solution.