Earlier this year, a consultant friend emailed me the following question he had received from a client: What is the true, total cost of changing out a third-party logistics provider (3PL) in an existing facility?
Great question, I replied, but I don’t have any data related to it.
Based on anecdotal evidence, the switching costs are relatively high, which is why divorcing your 3PL is often a last-resort option.
As we get ready at 3PL Briefings to launch our research agenda, I am revisiting this question. If you have switched 3PLs in the past and can provide some insight on the associated costs, please email me and share your experience (I will keep your responses confidential). I’ve also put together a Quick Poll to get a pulse on what you believe (or know from experience) is the biggest cost driver in changing 3PLs.
Stay tuned for more on this topic in future postings!