For every successful logistics partnership, there are the outsourced relationships that for many reasons just don’t work out. Maybe the logistics provider didn’t plan properly to take on a client’s business, maybe the company had unrealistic expectations. Either way here are some of the problems that can doom some 3PL Provider relationships to fail.
- Lack of Standard Operating Procedures
- Poor Communication during Client Implementation
- High 3PL personnel turnover
- Service Level Commitments Consistently Not Met
- Poor IT Capabilities
- Over Reliance on Technology
- Unpredictable inventory trends
- No Cultural Alignment found between 3PL and Client
- Focus on Lowering Costs over Exceptional Customer Service
- 3PL losing focus after a big acquisition or merger