End Your Logistical Nightmares: 8 Signs You Need a New Shipping and Logistic Partner

8 Signs You Need a New Shipping and Logistics Partner

In 2017, 90% of Fortune 500 companies utilized 3PLs. 

Once a company grows, it’s necessary to turn to outsourcing for shipping and logistic needs. However, even with these tasks in a third party’s hands, businesses can find themselves trapped in a nightmare. 

If you’re experiencing these ten signs, it’s time to look for a new shipping and logistics partner.

1. Pricing Varies

The pricing model your 3PL providers should be transparent and predictable. Unfortunately, too often owners find themselves facing varying rates.

Those rates may change depending on the owner’s growth, any special service requests, upfront fees and increasing contractual rates with shippers. If a logistics partner is giving you excuses about price hikes, they shouldn’t be.

Senior VP of Transplace Ben Cubitt explains that there is almost always a carrier that provides lower contract deals to brokers. Good 3PL companies find and exploit inefficiencies to receive lower pricing.

Those lower costs translate to transparent and predictable prices for companies outsourcing to them.

2. Your Business Is Growing Too Fast

If your company experiences exponential growth, inexperienced shipping organizations may not keep up. Furthermore, increased growth may mean consumers are out of reach of your current provider. If your provider can’t supply expedited shipping or other services that are in high demand, customers might look elsewhere.

While rapid growth is a “good” problem to have, it’s best to turn to a more proficient company before your reputation suffers.

3. A Lack of Communication

Buyers today expect to know what is occurring with their accounts and merchandise at all times. In fact, almost half of online shoppers have reported abandoning a seller because of poor order transparency.

Unfortunately, sometimes logistics companies fail to provide the communication customers want. News of returns, delayed orders and other mishaps may not reach you until after an angry customer calls or posts to social media.

4. Inability to Access Data or Products

To see where your company is headed and how you can reach your next milestone, you need to have the data about orders, shipments, arrivals and more.

When a 3PL fails to provide that information or makes it difficult to access it, you lose out on valuable data that could help your organization and your customers. Agreeing to work with a shipment provider means you trust that company to handle your company’s data in a responsible manner.

5. Ineffective System Integration

When a company outsources, there is an agreed-upon decision regarding events such as product replenishments, inventorying and more. Additionally, the 3PL’s software uploads to your e-commerce store, making it possible for customers to buy goods easily.

If anything goes awry in any of these departments, it leads to issues that harm your relationship with customers.

6. No Suggestions for Improvement

The best logistics providers discuss any concerns with you so that they can be overcome. This is a mark of a healthy relationship and a professional team.

However, some logistics companies overlook issues that create obstacles for your business, leaving you at a loss. This has a negative impact on your revenue, reputation, and customers.

As such, it’s integral that your third-party provider communicates with you about any concerns. They should also be willing to discuss options and find a solution that works for all parties.

7. No Risk Protection

According to Paul Stewart, General Counsel to the GST Corporation and the director of Optimum Resolutions & Consulting (ORC), the most contentious issue 3PLs and business owners debate over is liability.

Increased liability is an after-effect of turning to a third party for services. Liability or secondary liability is becoming a troublesome worry for businesses. Without proper risk protection, companies can face steep and unexpected expenses.

Consequently, it’s important that your contract spells out your policies and protect your firm. If not, contemplate finding another provider to work with.

8. You Rely on One Provider

You might have an excellent Transportation Provider who is on top of everything. However, if you rely only on the single shipping and logistics company, you may run into obstacles in the future.

If your company grows, there is a chance you will need further special services and an ability to ship products at a wider range. Some providers can’t meet these new expectations.

Due to this possibility, it’s best to work with a 3PL that offers many different services. In fact, most companies partake in multi-channel logistics.

8 Signs You Need a New Shipping and Logistics Partner

Having a third party manage your shipping and logistic needs is an excellent way to reduce your anxiety and help your company grow. However, to enjoy these benefits, it’s necessary to have a logistics company that caters to you rather than to your wallet.

At ATS, we offer deep discounts, all types of shipping and a team that not only gets the job done but believes in transparency and openness to foster relationships.

Contact ATS now for a discovery call to determine how our solutions will streamline your transportation needs.

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