We help you retain the customers you have, because churned clients are extremely costly 

Our engagements typically fit one of these situations

Initial contracting

Situation: 3PL preparing to enter into new agreement with Brand and wants to be proactive about establishing a contingency if and when dispute arises

Logistics Resolve focus: We would help add language to the agreement to have Logistics Resolve services available if the relationship got off track and/or as a pre-termination option for both parties

Inquire about our no-cost Logistics Resolve Partner Essentials offering

Upcoming renewal

Situation: Larger contracts coming up for renewal or renegotiation within the next ~3 months (brand may be considering testing market in RFP)

Logistics Resolve focus: We look to understand the gaps in the relationship preventing a no-bid renewal (e.g., cost concerns, service) and work with both parties to get to an enthusiastic renewal

Imminent termination

Situation: Brand is launching an RFP and/or has given notice (in some cases, Brands approach us having just been served a termination notice from their 3PL)

Logistics Resolve focus: We rapidly diagnose whether the the relationship is “save-able” (and whether it should be saved) and focus on quick wins and a long-term roadmap to bring the parties back together

Building dissatisfaction

Situation: Tension rising due to poor communication, unrealistic expectations, operational issues — “there’s always something” — and typical escalations have not worked

Logistics Resolve focus: We focus here on bringing the parties together to diagnose what’s causing the concerns, establish “what good looks like” from each side, and implement a roadmap of win-win commitments

Why 3PLs partner with Logistics Resolve to achieve their retention objectives

We have sat on both sides of the table

We have been in your shoes — we have experience from both the 3PL side and the brand side working through conflict. We have credibility with both sides to help them understand what good looks like

We work on root causes

In almost all cases, there are things that both the brand and the 3PL can do to improve. We help brands understand how they can better set their 3PL up for success — from an objective, 3rd-party perspective

There is minimal downside

We work on a contingency basis — if the relationship terminates, we don’t get paid. While 85% of mediations find a resolution, the parties are no worse off than at the start in the situations where resolution is not found

We understand your issues

In our decades of experience in logistics we have seen it all. We will be able to get up to speed on the issues impacting the partnership and draw on our experience to propose win-win solutions

We are completely neutral

Our sole purpose is to make the relationship work better for both parties. We don’t have a vested interest in any side “winning”. If we think that termination is actually the best route for one or both parties, we’ll tell you

The cost of losing desirable clients is too high

  • Word about poor 3PL experience travels quickly among brands, and strong references from trusted sources mean everything. A reputation for churning customers often significantly inhibits ability to to grow your business.

  • P&L targets that rely on a churned clients business move from achievable to impossible. Losing an anchor client often can turn an entire building unprofitable — or even the 3PL business as a whole. Finally, 3PLs make investments in client-specific infrastructure or automation that is not always covered by the client upon exit or transferrable to other customers.

  • Losing a client leads to diminished morale on the floor and in corporate offices and necessitate difficult reductions in labor. Our experience shows that following customer exits, is often voluntary attrition from key employees

  • Customer acquisition for 3PLs has gotten significantly more competitive over the past 1-3 years - our experience shows the average mid-market closed sales cycle costs approx. $100K. Almost always, there are “growing pains” with any new account before you’re able to hit your stride.

  • Anchor tenant for large eCommerce fulfillment 3PL terminates agreement with 90-day notice.

    Direct financial impact: $10M lost annual revenue ($3M fulfillment-related and $7M parcel trans. mgmt.), $0.5M CapEx decommissioned, and $1.5M in parcel revenue lost with other facility clients due to lower discount bands with carriers

    Lost sales and profits: Facility P&L went from 20% operating income to negative and ~$0.2M in severance costs for warehouse and middle-mgmt. layoffs

    Team impact: Exec. and Sr. leadership spent >100 hours attempting to save business from termination. 32 warehouse associates, 4 supervisors, and 1 ops. manager let go. Commercial team lost confidence in Operations ability to execute larger-volume business.