The Sad Part of 3PL Fulfillment - When a Customer Has To Say Goodbye

One of the most frustrating aspects of working in the industry of third party logistics (3PL) fulfillment is that you are a cheerleader, or more aptly, a fan in the stands rooting for your team (actually, all of your teams) to do well.

The very nature of this business is to be an invisible part of a client company - working behind the scenes to make sure that our customers' orders go out on time, are packed accurately, and are handled with care.

Once the package has left our dock and been picked up by USPS, FedEx, UPS or DHL we are rooting for the process to continue in a positive way. From where we sit we are cheering for:

• The driver to pick up the package and safely deliver it to the local processing center.
• The processing center to handle it on a timely basis, which includes scanning it, and moving it along to the next destination.

• The recipient to provide the correct address - free of typos, and they have included all the necessary info (Apt #, Suite, etc.) so the package has the best chance of arriving on schedule.
• Porch piracy to be kept at a minimum - there is nothing worse than finding out the package was delivered, but it was not there when the recipient went to pick it up.

Marketers we are not

The 3PL fulfillment company specialty is warehouse management, inventory control, timely fulfillment, and knowledge of shipping practices. We rely on the marketing prowess, sales ability, and the quality products that our customers offer to keep us busy fulfilling orders for their customers.

The Best Day

When we get a chance to onboard a new customer, coordinate our warehouse management system with their Shopify platform, begin to receive merchandise, designate locations in our warehouse and label the locations - these are exciting times. But, the best is when you begin to see orders coming in for your new customer's products. Seeing the activity increase over time is a win for both companies - our client and us.

The Worst Day

"The worst day" is really a misnomer. There is not one day that is horrible. It's actually a series of events that may lead to a sad, but inevitable conclusion. There are two categories of clients:

1. Companies that are discontinuing operations. Here are some of the warning signs:

• Delinquent invoice payments.
• A decrease in order activity.
• No new products being introduced, and too much stock on the shelves of the existing products.

Sadly, all the marketing in the world won't help this situation, and there comes a day when we have to say goodbye to one of our companies that was working on producing "the better mousetrap".

As a fulfillment company, we are generally not knowledgeable enough about our customers' products, industry trends, etc. to be able to offer meaningful suggestions. We observe from a (close) distance and wish everyone involved good luck on their next adventure.

In this situation it may even be difficult to get someone on the phone or to respond to an email. So, we contact a liquidator if company ownership "disappears", and we try to quickly tidy up this situation so we can make room for the next company that's trying to be the next Direct to Consumer sensation.

2. Companies that are unhappy and have found another fulfillment company.

Yes. It happens. Often it's price-driven, but sometimes it's just not a fit. Maybe the expectations were exaggerated. The challenge for the company leaving is that it's a bit like moving from one house to another. There are loose ends that need to be tied up with the company you are leaving, and challenges of getting used to a "new neighborhood" with your new company. There are going to be rough days due to new procedures, a new warehouse management system, and a new group of employees to deal with at the new 3PL.

Main Street USA - Reimagined

As a society, we long for the days of small town USA. It's a romantic notion born out of fictional Hallmark movies and sugary sweet tv shows. On one hand we want our small businesses to not just survive, but thrive. But...we live in a world of impatience and same-day/next-day delivery. A 3PL fulfillment company offers a diversity that may extend beyond your regular department store.

An internet "one stop shop"

These are just a few of the products you would see if you were to stroll the aisles in our facility.

• Pet carrier products
• Fabric swatches
• Cosmetics
• Comic books
• Shoes
• Purses
• Vintage t-shirts
• Car mufflers
• Neurological gear
• Olive oil
• Medical equipment
• Perfumes

The Good News

3PL Fulfillment is growing. Customers expect professionalism, responsiveness, and technology to be deployed to help manage their business. Companies like ours are trying to be true partners to any brand that is looking to make a name for themselves. Look for us in the stands - we'll be the ones with the pom-poms rooting for all of our customers.

Have a great week ahead!

Dave

About David Shultis

I currently work as a Customer Success Manager in the D2C (direct to consumer) business for a small 3PL fulfillment company (www.gofetchfulfillment.com) in Lakewood, NJ. This follows years of marketing, product management and customer service roles in some pretty fascinating industries.

You can find me biking in and around New Jersey, occasionally writing about whatever's on my mind, and enjoying both of my kids' outdoor adventures (Instagram - @natalieunderwater and @bdshultis), and navigating our empty nest with my wife, Denise.