Transitioning from Fully Owned to 3PL Logistics Service

Thinking of switching from your fully owned logistics warehouse operation to partnering with a third-party logistics (3PL) provider? Here’s your roadmap to a smooth and successful transition.

1. Assess your current logistics set up – Take a deep dive into your existing logistics processes, infrastructure, and capabilities. Identify your most common pain points, inefficiencies, and areas for improvement.  Understanding your current state is crucial for mapping out the transition process effectively.
2. Define Your Objectives – Clearly outline your goals and objectives for transitioning to a 3PL. Whether it’s cost savings, scalability, improved service quality, or expansion, having a clear vision will guide your decision-making and implementation efforts.
3. Research and select your 3PL partner – Invest time in researching and evaluating potential 3PL provider. Look for partners with a proven track record, industry experience, and a robust national network that aligns with your needs and objectives.  Don’t forget to consider factors like technology capabilities, service offerings and cultural fit.
4. Conduct Due Diligence – Once you have narrowed down your shortlist, conduct your due diligence on prospective 3PL partners. Evaluate their financial stability, reputation, compliance certifications, and references from existing clients.  A reliable partner who understands your business requirements whilst being flexible is crucial to a successful transition.
5. Develop a Transition Plan– Collaborate closely with your chosen 3PL service provider to develop a detailed transition plan. Prepare a project plan and spell out the roles, responsibilities, timelines, and milestones to ensure a structured and coordinated approach.  Anticipate and approach potential challenges and contingencies before implementation.
6. Data Integration – Prepare to interface your business’ systems with your 3PL partner’s WMS platform. Ensuring seamless communication and data exchange between your systems and theirs will help facilitate smooth operations and real time visibility.  This involves detailed and several rounds of User Acceptance Testing before signing off to Go Live.
7. Change Management and Training – Equip your team with the necessary knowledge to adapt to the new logistics model. Communicate proactively and provide training on the new processes, workflows, and portals to minimise resistance to change.
8. Continuous Improvement – Transitioning to 3PL is not a one-time event but an ongoing journey. Plan to continuously evaluate performance, gather feedback from both stakeholders, and collaborate with your 3PL partner to add value with opportunities for innovation. This is crucial for long-term success.

We at AirRoad Logistics have the expertise and can help you make the switch from owned to 3PL. We aim is to minimise any disruption, lower total supply chain cost whilst improving scalability and growth.  To speak to one of our AirRoad logistics experts, fill the form on this page and we will be in touch.