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10 Reasons To Consider Leaving Your Current 3PL
BarrettGPT • Apr 11, 2023
Is your current 3PL failing your brand?
As a supply chain professional, it is important to regularly evaluate your logistics partners and ensure they are meeting your needs. One such partner that often requires evaluation is your third-party logistics provider (3PL). While it may be tempting to stick with the same 3PL for years, there are several reasons why you should consider leaving your current provider. In this article, we will discuss 10 reasons why you should consider switching 3PLs.
- Poor Performance: If your 3PL consistently fails to meet your service level agreements (SLAs) and performance metrics, it may be time to look for a new provider. Your customers expect timely and accurate delivery, and if your 3PL is consistently falling short, it can damage your brand reputation.
- Limited Capabilities: As your business grows, your logistics needs will likely become more complex. If your current 3PL lacks the necessary capabilities to support your growth, it may be time to consider a provider with more expansive services.
- Lack of Visibility: Real-time visibility into your inventory and shipments is critical for making informed decisions and ensuring timely delivery. If your 3PL lacks the technology or processes to provide you with accurate and timely visibility, it can create unnecessary headaches and delays.
- High Costs: Cost is always a consideration when it comes to logistics. If your 3PL's pricing structure is not competitive or transparent, it may be time to look for a provider that can offer more cost-effective solutions.
- Limited Geographical Coverage: If your business requires nationwide or global distribution, your 3PL should be able to support your needs. If your current provider has limited geographical coverage or lacks the necessary infrastructure to support your business, it may be time to consider a provider with a more expansive network.
- Lack of Flexibility: Your business needs may change quickly, and your 3PL should be able to adapt to those changes. If your current provider lacks the flexibility to adjust to your changing needs, it may be time to look for a more adaptable provider.
- Poor Customer Service: Communication is key when it comes to logistics. If your 3PL is unresponsive or difficult to work with, it can create unnecessary stress and delays. Look for a provider with a reputation for exceptional customer service.
- Limited Technology: Technology is advancing rapidly in the logistics industry, and your 3PL should be keeping up with the latest trends. If your current provider lacks the necessary technology to support your needs, it may be time to look for a provider with more advanced solutions.
- Lack of Innovation: Along with technology, innovation is critical for staying ahead in the logistics industry. If your current 3PL lacks a culture of innovation and is not constantly looking for ways to improve, it may be time to consider a more forward-thinking provider.
- Incompatible Company Culture: Lastly, it is important to consider your company's values and culture when choosing a 3PL. If your current provider's values and culture do not align with yours, it can create unnecessary friction and make it difficult to work together effectively.
If any of these 10 reasons resonate with your current situation, it may be time to consider switching 3PLs. At Barrett Distribution, we pride ourselves on providing exceptional logistics solutions to DTC and omnichannel ecommerce brands looking to scale their outbound orders with a national provider. Contact us today to learn more about how we can help support your business's logistics needs.
Recent Blog Posts
"For over a decade, Barrett has been more than just a logistics partner; they've been an extension of our company. Barrett facilitated our expansion into the West Coast, enabling quicker turn times for our screen-printed goods. This partnership played a crucial role in our growth during the first several years." – Mike McAllister, Fruit of The Loom At Barrett Distribution, we pride ourselves on being more than just a logistics provider; we are a committed partner in our clients' growth journeys. Our ideal customers seek a deep, collaborative relationship, and our success stories, like that of Fruit of The Loom, highlight the importance of engagement, professional communication and mutual growth. This blog explains the key characteristics that define the ideal Barrett customer blueprint and how these traits contribute to a successful and long-term 3PL partnership. The Importance of Engagement When considering our most successful relationships at Barrett, it becomes clear that our best customers thrive on engagement. These customers are not just looking for a vendor; they seek a true partner. This partnership approach contrasts sharply with the transactional nature of typical vendor relationships, which often lack the depth and collaboration necessary for mutual success. Professional Communication and Mutual Growth Our ideal customers prioritize high levels of professional communication. They understand that a successful partnership with a 3PL provider requires ongoing dialogue, transparency and trust. This communication ensures that both parties are aligned and can work together seamlessly to achieve shared goals. Many of our most successful partnerships started with small, emerging brands. These companies were new in their journey and sought a partner who could help them scale. Through consistent performance and effective communication, we've helped these brands grow, and as a result, our credibility and level of trust have increased over time. Avoiding the Transactional Trap On the other hand, brands that frequently change 3PL providers, often in pursuit of the lowest cost, do not align with the Barrett approach. These short-term, cost-focused relationships lack the cultural fit we seek. We aim to enter partnerships with the expectation of a long-term commitment, ideally spanning ten years or more. This long-term perspective fosters deeper collaboration and a stronger, more resilient partnership. Conclusion The ideal Barrett customer values engagement, professional communication, and mutual growth. These customers view us as partners rather than vendors and share our commitment to long-term success. By focusing on these characteristics, we ensure that Barrett and our customers thrive in the competitive 3PL industry. Why Choose Barrett Distribution? With over 80 years of experience in the logistics industry, Barrett has a proven track record of helping businesses overcome their 3PL challenges. Our commitment to innovation, scalability and customer satisfaction sets us apart from other 3PL providers. You're partnering with a logistics provider dedicated to your success. Are you a company looking for a long-term 3PL partner? Contact us today to learn how our 3PL services can help your business scale and thrive.
Did you know that global e-commerce sales are expected to reach $8.1 trillion by 2026, a 56% increase from 2021? According to a report by Statista , the rapid growth in online shopping is driving this significant increase. Brand and consumer demands have fueled an explosive expansion of the third-party logistics (3PL) industry. 3PL services cover the full range of e-commerce fulfillment processes, from warehousing to pick-and-pack, shipping, and returns. If you’re an e-commerce company and fulfilling orders in-house is no longer viable, it’s time to turn to a third-party logistics (3PL) provider like Barrett Distribution Centers to expand your fulfillment strategy. Here’s what you should know about working with a logistics partner and how to choose the right one for your business's needs: 1. Experienced and Reliable Team The first and foremost consideration is the experience and reliability of the 3PL partner’s team. When leading a Request for Proposal (RFP), you might evaluate several companies, initially focusing on price and cost. However, these elements can often be quite similar across different proposals. What truly distinguishes one 3PL from another is the team’s expertise and proven track record. You want a partner who has “been there, done that” and can easily navigate the complexities of logistics. At Barrett, we pride ourselves on our people and culture, which consistently win us business. The team’s ability to do things efficiently and effectively is crucial for a successful partnership. 2. Exceptional Service Levels Service quality is another critical factor. The ability to fulfill orders accurately and on time is paramount, especially in the e-commerce sector. Customers expect their orders to arrive when promised, and any delays or inaccuracies can lead to dissatisfaction and lost business. When choosing a 3PL partner, ensure they have a robust system for managing order fulfillment and a track record of delivering exceptional service. The right partner will help you maintain high standards and keep your customers happy. 3. Scalability and Systems Lastly, consider the 3PL’s scalability and technological capabilities. While most large, reputable 3PLs have sophisticated systems in place, scalability is what sets them apart. You need a partner who can grow with your business and support you as you expand into new channels and markets. At Barrett, we aim to be your long-term partner, making it virtually impossible to outgrow our services. We think five, ten, or even fifteen years ahead, ensuring we can support your business's growth and evolving needs. Look for a 3PL that seamlessly integrates with your current operations and scales as your business grows. In summary, when hiring a new 3PL partner, prioritize their experience, service quality, and scalability. By focusing on these key areas, you can ensure a successful and long-lasting partnership that supports your business’s growth and operational efficiency. Why Choose Barrett Distribution? With over 80 years of experience in the logistics industry, Barrett has a proven track record of helping businesses overcome their 3PL challenges. Our commitment to innovation, scalability and customer satisfaction sets us apart from other 3PL providers. You're partnering with a logistics provider dedicated to your success. Are you a high-velocity D2C brand looking for a 3PL? Contact Barrett today to learn how our e-commerce fulfillment services can help your business thrive.
KAO Brands is a leading consumer products company specializing in haircare and hygiene products. They rely on Barrett Distribution Centers (BDC), to manage their entire fulfillment operation. As KAO's e-commerce business flourishes, optimizing costs per order becomes increasingly crucial. A Sustainable Impact Historically, KAO used seven carton sizes for packaging all their e-commerce orders. With ever-increasing shipping costs, BDC knew exploring hidden opportunities to improve KAO’s packing efficiency was necessary. Beyond the impact on their bottom line, KAO Brands strives to develop sustainable products and packaging, “making the world healthier and cleaner.” BDC’s Industrial Engineering team, spearheaded by Nick Halcombe , investigated potential cost reductions through cartonization optimization. Halcombe stated, “By partnering with Paccurate to pilot their innovative cartonization platform, BDC sought to determine if Paccurate’s software could identify a more efficient carton suite for KAO Brands. This collaboration can lead to significant savings in transportation and materials and positively impact the environment.” Leveraging Simulation for Real-World Impact The power of Paccurate’s packaging analysis tool, PacSimulate, lies in its ability to analyze vast amounts of order data and perform millions of cartonization iterations rapidly and at scale to test different carton sizes, cartonization rules, rate card changes, and more. In this case, BDC leveraged Paccurate to evaluate an entire year’s worth of order data to determine what savings might be found by optimizing the outbound shipping container sizes. Data-Driven Results The analysis revealed a clear path toward significant savings by comparing KAO's existing seven-box system to the ideal-fit cartons suggested by PacSimulate. Five out of the seven existing cartons were identified for replacement. This strategic shift resulted in a projected annual transportation cost reduction of 5.9%. Furthermore, PacSimulate's analysis identified a substantial opportunity for material savings. The optimized carton suite yielded a 33% reduction in corrugated material usage and a 34% net DIM weight reduction. These savings will contribute to KAO Brand’s ESG initiatives of ensuring 100% of their products will leave a full lifecycle environmental footprint that science says the natural world can safely absorb. Additionally, further analysis identified that KAO Brands could even reduce the number of cartons they stock while still seeing some benefits from a transportation and corrugated waste perspective. Optimization Results By implementing Paccurate's cartonization solution, BDC identified significant cost savings for KAO from both a transportation and materials perspective. The power of data-driven cartonization and its potential to significantly impact e-commerce fulfillment costs benefit customers and provide a value-added service for 3PLs like Barrett Distribution Center. The Bottom Line for KAO + BDC 33% Less corrugated material usage 5.9% Transportation cost reduction 34% Net DIM weight reduction About Barrett Distribution: With over 80 years of experience in the logistics industry, Barrett has a proven track record of helping businesses overcome their 3PL challenges. Our commitment to innovation, scalability and customer satisfaction sets us apart from other 3PL providers. You're partnering with a logistics provider dedicated to your success. Ready to overcome your logistics challenges? Contact Barrett today to discover how our tailored solutions can help your business thrive.
