We help brands solve pain points with their 3PLs
Poor 3PL performance harms your business and your customers. Brands should not suffer through paying too much for too little. But ending the relationship is often even more costly.
Logistics Resolve offers a different path.
Situations we’ve helped to resolve
Cost: Rate card changes to decrease total costs (incl. parcel)
SLAs: Troubleshooting root causes behind SLA misses
Disputed payments: Items billed in “gray area” of contracts
Communication: Resetting norms and how parties partner
Contract structures: Amending dated or unfair terms and clauses
New channels: Crafting SOPs and keys to success for new channels
Account mgmt: Resetting how work with acct. mgmt. is done
Peak: Navigating past challenges + prep for next year
Why brands partner with Logistics Resolve to achieve their 3PL objectives
We have sat on both sides of the table
We have been in your shoes — we have experience from both the brand side and the 3PL side working through conflict. We understand brands’ concerns, and can put those in a language the 3PL speaks.
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
We work on root causes
In almost all cases, there are things that both the brand and the 3PL can do to improve. Switching providers without ensuring you are setting up a partner for success is often a recipe for the same problems to recur.
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 rare situations where resolution is not found.
The costs of termination are too high
Direct financial costs 10-25% of annual logistics budgets, team and personnel disruption, and lost sales and profits are all hallmarks of 3PL transitions. See below for more information.
The costs of transitioning 3PLs are too high
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Our experience shows is that packing out inventory at an incumbent, trucking to a new provider, and “re-” receiving it generally costs 10-25% of a business’ annual fulfillment and shipping budget — for a mid-size Brand around $0.5 - 2M. The range is typically due to amount of inventory being moved and “agreeableness” of the incumbent.
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Transitioning distribution nodes without disruption is difficult for the most robust Supply Chains, let alone sensitive e-commerce networks. Brands often face website out-of-stocks leading to decreased conversion and/or AOV, delayed order fulfillment causing lower repeat purchase rates, and increased CX traffic
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Given the risk to business continuity, 3PL transitions are immediately a CEO-level topic discussed at every exec. meeting, putting enormous pressure on operations teams. Selecting a new 3PL and managing the transition puts a significant burden on Operations teams, while important company priorities and opportunities are often put on hold during transition.
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Cookware brand transitioned East Coast distribution node following years of poor performance, 3PL leadership changes, and a significant price hike.
Direct financial impact: Spent approx. 12% of annual fulfillment and shipping budget on pick/pack, trucking, and re-receiving
Lost sales and profits: 25% revenue dip over 2 month transition period due to key bundles on site being out-of-stock, and a 20% increase in shipping costs due to fulfilling East Coast orders from West Coast node
Team impact: Operations team lost an opportunity to implement a new carrier that would have saved 15% on parcel costs, while cross-functional collaboration suffered due to other teams having diminished faith in Operations
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Sporting Goods company terminated relationship with large 3PL after 3 years due to inability to integrate various sales channels, poor relationship / performance, and inability to get services into contractual rates.
Direct financial impact: Spent $250k on direct moving expenses, and was obligated to pay down $400k worth of 3PL CapEx costs
Lost sales and profits: Operations team was “all hands on deck” for move, pushing other team priorities, while delayed order fulfillment led to increased Customer Support costs and lost repeat purchases.
Team impact: Operations team had worked for 3 years to onboard incumbent 3PL to all business lines, and was highly frustrated by not wanting to “do it again” with a new provider, leading to two team member resignations