When changing providers, it’s wise to consider the timing of the transition. Many retailers search for a new provider to coincide with the start of a new calendar or fiscal year. Ideally, the change should be made during a quiet period operationally.
The first step is to look at the contract you have with your old provider. If the contract term is nearly up and you plan to make the switch when the term completes, then the process will run relatively smoothly. However, if there is still quite a chunk of time left in the contract, then you'll need to consider your options for terminating the contract.
Your contract is most likely going to contain clauses about what circumstances could trigger a termination. These could include:
Your contract probably won't include anything around dissatisfaction as a reason you can terminate the contract. If you'd like to terminate the contract without qualifying for a clause within the contract, you may need to seek out a lawyer to aid in the transition.
Looking Ahead
You've honed in on a couple great candidates to switch to and now you have to think about how to make the transition from your current provider as smooth as possible. A 3PL contract is usually a long-term investment, so you will need to weigh all the components in your wish list before submitting an RFP (Request for Proposal) to the top few 3PLs from your research. Where are your red lines and where is there wiggle room? You should also include business goal metrics into your RFP as well.
Once your old 3PL has signed off on your termination, you will need to start negotiating a contract with your new 3PL. You should ensure that your 3PL wish list is adhered to and detailed within the contract in measurable ways.
Another great way to get off on the right foot is to have your new partner meet with your leadership team to understand the nuances of your business. Having them look at your promotional calendar will ensure they are operationally aligned with your business straightaway and will mitigate the potential for problems ahead. You'll want to ask them about their onboarding process, making note of the steps and seeing if anything is missing from your end that will need to be accounted for.
Stocking in
Stocking into a new warehouse from an old one can be a fragmented and painful process or it can run so smoothly your customers don’t even notice it. It’s worth having a detailed discussion with your new provider about their stocking in and onboarding process. They’ll have to be proactive about communicating with your old 3PL and owning the transfer process. You might want to consider keeping some inventory with your old 3PL while shipping inventory to your new 3PL to avoid backorders and to ensure a smooth transition.
Once you're ready to go you will need to set up website integration with your new 3PL’s warehouse management system. This will allow them to accept new orders the second they come in. If you’ve found a great 3PL, then the integration should be seamless.
Communication is key
You're levelling up to a new provider because you want to accelerate your business and take it to new heights. This can only be a good thing for your customers, and it's important to position it that way. Using your website and social media channels, share the great news of your switch, being sure to highlight the benefits to your customers. This shows that you value them, and that the switch has been designed with them in mind.
Sometimes the best laid plans go awry. If there is going to be a gap in service, that might mean suspending next-day delivery or extra delays, you should let your customers know. Customers value transparency and will appreciate you being upfront with them.
If your new provider has different locations than your previous one, this may affect shipping times. Once you've confirmed with your new provider which regions they will be supporting you in and what shipping timeframes are available, you'll want to update your website accordingly to keep your customers in the know.
