{"id":72464,"date":"2025-01-10T15:55:45","date_gmt":"2025-01-10T20:55:45","guid":{"rendered":"https:\/\/www.radial.com\/?post_type=insight&#038;p=72464"},"modified":"2025-06-24T15:53:03","modified_gmt":"2025-06-24T19:53:03","slug":"frustrated-customers-why-it-might-be-time-to-switch-3pls","status":"publish","type":"insight","link":"https:\/\/www.radial.com\/eur\/insights\/frustrated-customers-why-it-might-be-time-to-switch-3pls","title":{"rendered":"Frustrated Customers? Why It Might Be Time to\u00a0Switch 3PLs\u00a0"},"content":{"rendered":"\n<div class=\"interior-page-block-area\">\n\t\n<div class=\"core-paragraph-block\">\n<p>Retailers have many priorities this year, but there\u2019s one thing they cannot afford to miss: high customer expectations.&nbsp;Customers have high expectations for every element of their online shopping experiences:&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-list-block\">\n<ul class=\"wp-block-list\">\n<li>In 2024, 29% of consumers expected online orders to arrive in 2-3 days\u2014a 53% increase year-over-year.&nbsp;<\/li>\n<\/ul>\n<\/div>\n\n<div class=\"core-list-block\">\n<ul class=\"wp-block-list\">\n<li>Poor customer service caused 61% of consumers to <a href=\"https:\/\/info.microsoft.com\/rs\/157-GQE-382\/images\/2018StateofGlobalCustomerServiceReport.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">shift brands<\/a>.&nbsp;<\/li>\n<\/ul>\n<\/div>\n\n<div class=\"core-list-block\">\n<ul class=\"wp-block-list\">\n<li>62% of shoppers won\u2019t purchase from a retailer that doesn\u2019t offer <a href=\"https:\/\/www.klarna.com\/assets\/sites\/3\/2019\/11\/14080024\/6310-KLA-Re-thinking-Returns_DD1-28.02.191.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">free returns<\/a>.&nbsp;<\/li>\n<\/ul>\n<\/div>\n\n<div class=\"core-list-block\">\n<ul class=\"wp-block-list\">\n<li>79% will&nbsp;<a href=\"https:\/\/www.radial.com\/eur\/insights\/ecommerce-postpurchase-personalization\">avoid a brand in the future<\/a>&nbsp;after a bad post-purchase experience.&nbsp;&nbsp;<\/li>\n<\/ul>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>By focusing on great customer experiences companies can realize an <a href=\"https:\/\/www.radial.com\/eur\/a-retailers-guide-to-outsourcing-ecommerce-fulfillment\">80% increase in profit<\/a> compared to those that don\u2019t. Leading retailers differentiate themselves&nbsp;by focusing on great customer experiences across the <a href=\"https:\/\/radial.com\/ecommerce-fulfillment\">e-commerce fulfillment<\/a> process\u2014from online orders through to great delivery. &nbsp;<\/p>\n<\/div>\n\n\n\n<div class=\"image\">\n\t\t\t<picture>\r\n<source data-image-size=\"image_block_small\" srcset=\"https:\/\/www.radial.com\/wp-content\/uploads\/2025\/04\/conveyor-with-parcels-aspect-ratio-47-30-564x360.jpg, https:\/\/www.radial.com\/wp-content\/uploads\/2025\/04\/conveyor-with-parcels-aspect-ratio-47-30-1128x720.jpg 2x\" media=\"(max-width: 600px)\" type=\"image\/jpeg\">\r\n<source data-image-size=\"image_block_large\" srcset=\"https:\/\/www.radial.com\/wp-content\/uploads\/2025\/04\/conveyor-with-parcels-aspect-ratio-47-30-940x600.jpg, https:\/\/www.radial.com\/wp-content\/uploads\/2025\/04\/conveyor-with-parcels-aspect-ratio-47-30-1880x1200.jpg 2x\" type=\"image\/jpeg\">\r\n<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.radial.com\/wp-content\/uploads\/2025\/04\/conveyor-with-parcels-aspect-ratio-47-30-940x600.jpg\">\r\n<\/picture>\t\t\t<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Reliable and personalized <a href=\"https:\/\/www.radial.com\/eur\/insights\/the-art-of-bespoke-fulfillment-solutions\">order fulfillment<\/a>&nbsp;can significantly enhance customer satisfaction. Great order fulfillment is difficult as each customer\u2019s experience hinges on the efficiency of order fulfillment. They judge their experience based on whether they receive their items on time and without issues. For many brands, that means selecting a trusted third-party logistics (<a href=\"https:\/\/www.radial.com\/eur\/3pl-2\">3PL<\/a>) provider to streamline operations, balance costs, <em>and <\/em>meet customers\u2019 high expectations.&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-heading-block\" data-heading-level=\"2\">\n<h2 class=\"wp-block-heading\">The benefits of a Third-Party Logistics Provider&nbsp;<\/h2>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Retailers frequently seek third-party logistics partners to deliver great customer experiences. Variable order volumes, high warehousing and transportation costs, lack of automation, and complex supply chains make scaling <a href=\"https:\/\/www.radial.com\/eur\/insights\/in-house-fulfillment-scale-it-or-outsource-it\">in-house fulfillment<\/a> extremely difficult. Now, <a href=\"https:\/\/www.soocial.com\/ecommerce-fulfillment-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener\">57% of e-commerce companies<\/a> are outsourcing some or all of their fulfillment processes\u2014up from just 29% in 2020.&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Outsourced e-commerce fulfillment allows brands to focus on developing products and scaling core competencies, while their logistics partners manage warehousing and distribution, order processing, inventory management, and shipping.&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-heading-block\" data-heading-level=\"2\">\n<h2 class=\"wp-block-heading\">Why switch? Five reasons to switch 3PLs&nbsp;<\/h2>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>E-commerce is evolving fast, and retailers must stay agile and customer-focused to stay ahead. When 3PLs fall short on speed, flexibility, or experience, it\u2019s time for supply chain leaders to make a change.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Here are five signs that a retailer should reassess and potentially switch logistics providers.&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p><strong>Orders take too long and cost too much to get to your customers.<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>This primarily occurs when fulfillment providers don\u2019t have enough distribution centers or fulfillment locations within a 2\u20133-day proximity of areas with high customer demand. Customers expect fast deliveries. Only 26% of consumers have the patience to wait a week or more for a package to arrive. The further a 3PL ships orders, the greater the cost for you\u2014and the higher likelihood of frustrated customers.&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Look for e-commerce fulfillment providers that have the size, infrastructure, flexibility, and growth strategy that mirrors or outpaces your own. A 3PL should take the time to understand your current needs and future roadmap, as well as address contingencies like supply chain disruptions and demand spikes. &nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p><strong>A provider misses KPIs during seasonal peaks.<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>If your current 3PL missed key performance indicators (KPIs) and struggled to fulfill orders during <a href=\"https:\/\/www.radial.com\/eur\/insights\/understanding-black-friday-2024-european-market-trends-and-challenges\">seasonal peaks<\/a>,&nbsp;it is likely time to reassess whether they can scale to meet your needs. Your 3PL should be able to seamlessly scale up for high volumes and down to handle during slow periods. Look for a 3PL that openly discusses how they will scale via automation, facility capacity, operational efficiency, and seasonal hiring ensuring that customers have positive shopping experiences and receive their orders on time.&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p><strong>They offer the lowest cost option but compromise quality.<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Your 3PL represents your brand first and foremost. There\u2019s no margin of error when demand spikes and customers expect deliveries. It might be tempting to go with a low-cost option, but it can lead to the risk of compromised quality. 3PLs that <a href=\"https:\/\/www.radial.com\/eur\/insights\/3pl-value-proposition\">rely on low costs<\/a> to attract customers can affect operations and delivery, leading to unhappy customers and lost revenue.&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p><strong>Available technology solutions do not deliver results.<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Artificial intelligence (AI) and machine learning (ML) advancements are generating excitement, with many vendors marketing their products as AI-driven. While some solutions offer real productivity gains, many are still immature. If your 3PL\u2019s promised benefits haven\u2019t materialized, it may be time to seek a provider with a proven, results-driven technology strategy.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Look for a 3PL that offers and uses technology that produces the results you need now \u2013 with an eye on future innovation.&nbsp;They should leverage solid, proven solutions that yield&nbsp;real-time inventory visibility, a robust, easy-to-integrate&nbsp;order management platform, and&nbsp;reporting that delivers insights&nbsp;to make crucial decisions.&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p><strong>They are not prepared for supply chain disruptions.<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Supply chain disruptions lasting a month or longer occur every 3.7 years. Whether it&#8217;s geopolitical disruption or a natural disaster, your supply chain partner should be prepared to proactively respond and mitigate risks. &nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Retailers can respond by optimizing fulfillment operations, reassessing existing networks, and preparing communication plans for customers.&nbsp;And they need 3PL partners that can move quickly and act flexibly whenever new disruptions occur.&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-heading-block\" data-heading-level=\"2\">\n<h2 class=\"wp-block-heading\">Focus on a partnership mindset&nbsp;<\/h2>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Ultimately, retailers will need to seek a 3PL partner that best meets their evolving needs and growth strategies. The 3PL should hold a partnership mindset and add long-term value for both the retailer and their customers. &nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>For many leading brands, that partner is Radial.&nbsp;<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Radial leverages a partnership mindset\u00a0to create seamless logistics solutions designed to delight customers. Radial\u2019s 40+ years of experience, expertise with efficient order fulfillment, and innovative payment solutions position retailers to compete and meet customer expectations.\u00a0 We understand that every retailer is unique, and we offer tailored solutions for your growing needs. \u00a0<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p><br><strong>Follow Radial on&nbsp;<a href=\"https:\/\/www.linkedin.com\/company\/radial-europe\/\" target=\"_blank\" rel=\"noreferrer noopener\">LinkedIn<\/a> and&nbsp;<a href=\"https:\/\/www.facebook.com\/RadialEurope\" target=\"_blank\" rel=\"noreferrer noopener\">Facebook<\/a><\/strong>.&nbsp;<\/p>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"featured_media":69733,"template":"","insight_type":[],"solution":[399],"class_list":["post-72464","insight","type-insight","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight\/72464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":7,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight\/72464\/revisions"}],"predecessor-version":[{"id":76396,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight\/72464\/revisions\/76396"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/media\/69733"}],"wp:attachment":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/media?parent=72464"}],"wp:term":[{"taxonomy":"insight_type","embeddable":true,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight_type?post=72464"},{"taxonomy":"solution","embeddable":true,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/solution?post=72464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}