A 3PL that worked perfectly for your business a few years ago might be holding you back today. Maybe orders are slipping, warehouse space is tight, or your team is spending too much time fixing problems that shouldn’t exist. Whatever the symptoms, it’s time to explore solutions.
Here are 6 signs your current 3PL may be a mismatch, and how you can evaluate where the partnership is headed.
1. Your 3PL Consistently Misses Service-Level Agreements
Service-level agreements (SLAs) establish the performance standards you expect from your logistics provider. Depending on your operation, these may cover receiving turnaround, inventory accuracy, order processing times, shipping deadlines, or other key metrics.
Occasional issues happen in any supply chain, but missed SLAs shouldn’t be routine. Every pick and pack error impacts inventory accuracy, every late shipment impacts customer satisfaction, and so on. When missed SLAs are a regular occurrence, the fallout is felt across your business.
If you’re encountering a lot of missed SLAs, start reviewing your 3PL’s performance. Look for recurring issues rather than isolated incidents. Then ask your provider if underlying issues have been identified and corrected.
Questions to ask your current 3PL:
- Which SLAs are we consistently missing, and why?
- What concrete steps are being taken to improve performance?
- How do you plan to meet SLAs as we continue to grow?
- Are there clear points of contact and escalation procedures when issues arise?
A reliable 3PL should be able to explain performance, communicate problems clearly, and work with you on measurable improvements. If it takes several follow-ups or escalating a conversation to management to get a straight answer, it might be time to switch to another logistics partner.
2. Every Change Requires a Special Request
Your logistics requirements won’t stay the same forever.
A flexible 3PL should be able to evaluate a request for new labeling requirements, adjusting shipping schedules, or specialized handling and then determine how they can accommodate it.
Every change may not be easy or immediate, but your 3PL will ideally have the processes, expertise, and willingness to find reasonable solutions for you.
If modest changes trigger lengthy delays, repeated negotiations, or outright refusals, your logistics partner may not be equipped to serve you well in your next stage of growth.
This is particularly critical if you have products that require special handling or operate in a highly regulated industry. Food and beverage warehousing, temperature-controlled storage, pharmaceutical compliance, and other sensitive products often require protocols that many 3PLs won’t be certified or experienced enough to meet.
Questions to ask your current 3PL:
- How do you handle changes in product mix, packaging, or handling needs?
- Can you support new operational or compliance requirements?
- What special handling certifications do you have? Can you walk me through how you maintain strict compliance?
The ideal logistics partner can adapt to your specific needs while maintaining appropriate quality, safety, and operational standards.
We’ll use Moran Logistics as an example: We offer bonded warehousing and cold storage warehousing, including cold chain logistics for food, beverages, pharmaceuticals, and chemicals. Our team is trained in compliance protocols and we maintain current certifications with the USDA, FDA, Pennsylvania Liquor Control Board, AIB International, and the US Department of Customs and Border Protection.
This sounds like a lot, because it is. We don’t take any shortcuts when it comes to protecting our customers’ product and livelihood.
3. Manual Workarounds Have Become Part of the Process
A spreadsheet here, a separate email there, a phone call to confirm inventory, and a manual adjustment to reconcile two systems every week… Workarounds can seem harmless when they solve an immediate problem, but these small fixes can become an unofficial operating system that’s inefficient and unreliable. Every manual update, export, or reentry introduces a larger margin of error.
Tech doesn’t have to be elaborate to be effective, but it does need to be consistent. Your 3PL should have a warehouse management system that includes real-time inventory tracking and gives you full visibility into your supply chain without any back-and-forth.
Questions to ask your current 3PL:
- Which processes depend on manual data entry or reconciliation?
- Can we access accurate, real-time inventory and fulfillment information?
As you talk with your logistics provider, consider whether workarounds feel like temporary fixes or symptoms of a larger systems problem. There are 3PLs that haven’t stayed current with the available tech, and their customers often pay the price. AI has given us all the ability to automate, streamline, and sync most of the manual and administrative work so we can focus our energy on bigger-picture challenges like growing the business. Make sure the logistics partner you choose has the same mindset.
4. Your Business Has Outgrown Available Warehouse Capacity
Growth is good news, but it can put additional strain on an already-stretched logistics operation. More inventory, higher order volumes, new product lines, and seasonal demand can quickly strain warehouse space and labor resources.
If your current 3PL struggles to accommodate incoming inventory, manage peak-season volume, or adjust staffing to meet demand, capacity may start feeling like a bottleneck. Limited capacity often creates less obvious problems too: Receiving my slow down, inventory may need to be stored in less-than-ideal locations, and warehouse teams may have difficulty keeping up with picking and replenishment processes.
When you evaluate capacity, look beyond the square footage available today. Consider whether your logistics partner can accommodate projected growth, seasonal fluctuations, and changes in your product mix without compromising services.
Questions to ask your current 3PL:
- How will you accommodate our projected inventory and order volumes?
- How do you handle seasonal peaks or unexpected demand?
- Do you have the flexibility to adjust storage and labor resources as our needs change?
The right 3PL should offer a realistic plan for growth rather than forcing you to solve capacity problems every time business picks up.
Warehouse location may also be a factor. Take the East Coast, for example. If most of your customers are located here, our warehouse network puts your product within an 8-hour drive of 60% of the North American population. A strategic location like this doesn’t just increase your capacity but also accelerates your delivery times.
5. Logistics Costs Are Increasing Without Clear Explanation
Price matters, but the lowest quoted rate doesn’t necessarily deliver the lowest total cost. Storage fees, handling charges, labor, transportation, rework, and administrative overhead all hit the top line cost of your logistics partnership.
If your invoices are difficult to understand or additional expenses keep showing up without a clear connection to changes in volume or service requirements, it’s time to take a closer look.
You should also consider the internal cost of managing your provider. If your team is spending hours correcting counting errors, tracking down shipments, or reconciling inventory, that time should be part of your evaluation.
Questions to ask your current 3PL:
- Can you walk us through what we’re paying for? Which costs have changed, and why?
- Are there any operational improvements that can help us balance cost and performance?
6. Your Business Has Changed, but the 3PL Relationship Hasn’t
Sometimes the root issue isn’t poor performance but a mismatch between what your business needs now and what your original logistics agreement was designed to deliver.
Have you expanded into new markets? Added customers with stricter delivery requirements? Introduced more specialized products? If so, your provider may be meeting the terms of your original agreement while still falling short on your current operational needs.
This is where broader evaluation makes sense. Look beyond today’s order volume and consider your business plans for the next 2-3 years: Can your provider support your expected growth? Does it have the warehousing, handling, and fulfillment expertise you require? Is the 3PL staff knowledgeable enough to take a strategic approach to emerging challenges and keep your supply chain moving smoothly? Determine whether you need a new agreement or a new partner…
How to Thoughtfully Evaluate Your Current 3PL Before Making a Change
If you’re reading this, you’re probably already frustrated with your current 3PL. Make it a priority to either improve the relationship (and the results you get) or determine whether it’s time for a change.
Here’s how to assess the partnership thoughtfully and thoroughly:
- Establish a performance baseline. Review the past 3-6 months of SLA results, receiving times, order accuracy, inventory accuracy, fulfillment performance, and logistics costs. Use actual data rather than relying on impressions.
- Identify the root causes of your concerns. Separate one-time disruptions from recurring problems. Determine which issues stem from your own processes, which belong to your 3PL, and which require a joint solution.
- Have a direct conversation. Share your findings, talk through concerns, and clarify expectations. If you feel the partnership may be salvageable, ask for a specific improvement plan with measurable targets and timelines.
- Evaluate future requirements. Document anticipated changes in volume, storage, handling, compliance, tech, and distribution. A solution that addresses today’s problems but can’t support tomorrow’s needs may only postpone the inevitable.
- Compare the cost of staying with the cost of switching. Changing 3PL providers involves real work including inventory transfers, systems coordination, process validation, and transition planning. Weigh those costs against the ongoing impact of poor service, inefficiency, or limited capacity.
Get a Logistics Partner That Can Grow With You
The right 3PL should give you all the support you need today, with the flexibility to handle what’s next. That means dependable service, appropriate warehouse capacity, proactive communication, and processes that support efficiency rather than creating more work for you.
Moran Logistics is an asset-based, end-to-end 3PL provider offering warehousing, special handling, fulfillment, distribution, transportation, indoor rail, value-added services like kitting, and more.
When you partner with us, you get a dedicated account team that brings the expertise of a third-generation business. You’re not a number in a queue or a line item on a call list. We treat you like a partner, because that’s exactly what you are.
If you’re considering a new 3PL, talk with our team. We’ll give you our honest opinion and we look forward to winning your trust, your business, and your loyalty.
