5 Ways to Successfully Switch to a New 3PL

The 2022 horror story: after a year of getting your head kicked in, it's finally the time to shine with Q4. The prep work has been done, campaigns are ready, your inventory is at your 3PL, the buyers are there –– it's scaling season. The results? You absolutely crushed BFCM and all throughout the holiday. Everything that you planned was executed to perfection –– except one outlying variable you didn't account for. That outlier? Your 3PL completely dropping the ball.

Orders delayed. Orders with missing items. Orders not shipped at all. Your staff drowning in support tickets filled with angry customers. To boot, it's all your fault (let's be real, you have a better chance at talking to a wall to understand your point of view then some of your customers). Your company is now viewed as the grinch because you've officially stolen Christmas. It's that level of service that can ruin your company's reputation for good. 

For now, all you can do is damage control and look for another 3PL (third-party providers). That process can be quite daunting and scary, although, it doesn't have to be! Here are a five different strategies that you can adopt to make the transition as smooth and successful as possible:

1. The "big bang" approach: This involves switching to the new 3PL all at once, typically with a specific cut-off date. This can be a quick and efficient way to migrate, as it allows the company to fully commit to the new provider and implement any necessary changes all at once. However, it also carries some risk, as there may be unforeseen challenges or issues that arise during the transition. To mitigate this risk, it is important for the company to thoroughly plan and prepare for the switch, and to have contingency plans in place in case of any unexpected issues.

2. The phased approach: This involves gradually transitioning to the new 3PL over a longer period of time, allowing for a more gradual and controlled migration. This can be a good option for companies with a large and complex supply chain, as it allows for more testing and fine-tuning of the new processes before fully committing to the new 3PL. It also allows the company to identify and address any potential issues as they arise, rather than all at once. However, it can also be more time-consuming and may require additional resources to manage the dual systems during the transition period.

3. The pilot program approach: This involves testing the new 3PL with a small subset of the company's supply chain before rolling it out to the entire operation. This can help identify any potential issues or challenges before committing to a full-scale migration. It also allows the company to test the capabilities of the new 3PL and ensure that it meets their needs and expectations. However, it may be more time-consuming and require additional resources to set up and manage the pilot program.

4. The dual-sourcing approach: This involves using both the current and new 3PLs in parallel, with the goal of eventually transitioning fully to the new 3PL. This can be a good option for companies that are hesitant to make a complete switch, or that want to have a backup plan in case the transition to the new 3PL does not go smoothly. It also allows the company to test the new 3PL and ensure that it is a good fit before fully committing to it. However, it can also be more complex and require additional resources to manage two different systems at the same time.

5. The "rip and replace" approach: This involves making a sudden and complete switch to the new 3PL, typically with little or no overlap between the old and new systems. This can be a quick and efficient way to migrate, as it allows the company to fully commit to the new provider and implement any necessary changes all at once. However, it also carries a higher risk of disruption to the supply chain, as there may be issues with the transition that could impact the company's operations. To mitigate this risk, it is important for the company to thoroughly plan and prepare for the switch, and to have contingency plans in place in case of any unexpected issues.

Overall, there is no one-size-fits-all approach to migrating to a new 3PL, and the best strategy will depend on the specific needs and circumstances of your company. By carefully considering the options and planning the transition carefully, you can ensure a smooth and successful migration to a new 3PL. With whatever strategy you chose, Tondo Fulfillment will hold your hand along the way until you've completely migrated to our facility.