When you choose a Third Party Logistics provider, the hope and intention is that you’re forming a partnership that will last for years. Indeed, you likely spent months researching, interviewing and analyzing your candidates before making your decision. But what if your provider isn’t living up to expectations? When do you resolve to look for another company? Consider the following factors when making your decision.
Lack of growth. Your company is growing – but your 3PL provider isn’t growing with you. Maybe the company is resistant to change – or maybe they’re losing clients due to poor service. Either way, it’s a cause for serious concern.
Massive price hikes. While price fluctuation is inevitable, huge spikes in cost shouldn’t be. In addition to affecting your budget, major price increases on the part of your logistics provider suggest poor financial management.
Turnover. No company is free from employee turnover – it’s the nature of business. But if your 3PL provider’s executive team appears to be a revolving door, it’s a clear indication of internal turmoil – which affects the company’s overall focus.
Not learning from mistakes. No relationship is perfect, in life or in business. Part of fostering a successful partnership is through trial and error. But is your logistics provider making the same mistakes time and again? And are you dependent on workarounds to control the damage that these mistakes cause? Your productivity suffers as a result – and it demonstrates poor management on behalf of your provider.
No “disruptive innovation.” In our last post, we talked about the importance of disruptive innovation on the part of 3PL providers – that is, striving toward the discovery of new methods and innovations that disrupt the industry status quo in a positive way. Ask yourself if your 3PL provider is motivated to make these kinds of discoveries. If not, your bottom line is ultimately affected.