How to Fire Your 3PL – A Complete Guide

Switching third-party logistics (3PL) providers isn’t something most companies plan for, but it often becomes necessary.

Whether it’s missed SLAs, poor communication, or customer complaints piling up, a bad 3PL will cost you more than money—it will damage your customer relationships, wear down your internal teams, and hold back growth. If you’re stuck managing delays, chasing updates, or fixing someone else’s mistakes, it’s time to seriously evaluate the relationship.

This guide walks through when to fire your 3PL, what to watch for, how to transition smoothly, and what to look for in a better provider. If logistics is becoming a daily source of stress and distraction, you’re not alone—and there’s a better way to run your supply chain.

Signs You Should Fire Your Current 3PL

When your 3PL consistently underperforms, the problems show up across your operations. If you’re seeing issues on multiple fronts, chances are they won’t fix themselves.

The first and most obvious sign is unhappy customers. If you’re fielding complaints about late deliveries, incorrect orders, or damaged goods, your 3PL may be at fault. These errors often lead to lost sales and damaged brand reputation.

You should also look closely at internal friction. When your team is constantly following up, troubleshooting issues, or spending hours resolving basic logistics tasks, the 3PL is no longer doing its job.

Common red flags include:

• Missed delivery windows or late shipments
• Poor communication or delayed responses from your 3PL’s team
• Inaccurate inventory levels that don’t match your system
• Repeated failure to meet KPIs like order accuracy or on-time rate
• Lack of transparency or vague reporting
• No process for continuous improvement or issue resolution

A reliable 3PL will have service level agreements, clear reporting, and regular reviews. If your current provider fails to honour commitments or cannot show progress after repeated discussions, the relationship is already in decline.

These issues aren’t just operational—they create real business risks. Over time, they can slow down growth, erode your team’s confidence, and force you to absorb the cost of their mistakes. If your 3PL isn’t supporting your goals, they’re getting in the way.

Consequences of Working with a Bad 3PL

Poor performance from your 3PL can trigger order delays, inventory errors, and customer churn, leaving your team stuck in damage control instead of focusing on growth.

When your 3PL consistently ships late or sends the wrong product, your customer service team ends up fielding complaints and offering discounts. That directly cuts into margins. Every delayed shipment or missed delivery promise makes your company look unreliable, even if it’s not your team causing the failure.

Operational strain builds up inside the business as well. Sales, ops, and customer support teams start losing faith in logistics. They waste time cross-checking reports, verifying stock levels, or escalating simple fulfilment issues. This breakdown in trust adds internal friction and slows down response times.

Specific risks include:

• Reputational damage from late or missed deliveries
• Lost revenue due to customer churn and cancelled orders
• Higher customer service costs to fix preventable issues
• Inventory mismatches leading to stockouts or overstock
• Inefficient workflows as your team compensates for the 3PL’s gaps
• Difficulty scaling because you can’t trust your logistics partner to keep up

Over time, these issues turn into strategic blockers. You stop launching new SKUs, delay regional expansions, or hesitate to run promotions because you can’t count on your warehouse to handle the volume. A bad 3PL doesn’t just cause noise—they slow your business down.

How To Go About Firing Your 3PL

Terminating a 3PL contract requires planning. If you move too fast without a backup, you risk disrupting your supply chain. If you move too slow, the damage keeps growing. Start by documenting everything and reviewing your existing agreement.

Check your contract for the notice period, typically 30 days, and identify any out clauses. Make sure your team understands what’s legally required to exit. Confirm whether there are handoff or termination fees, and whether inventory can be released cleanly.

Next, line up your next provider. Never begin offboarding until you’ve vetted and confirmed your new 3PL is ready to receive goods. Gaps between providers leave you stuck with orders you can’t fulfil and inventory you can’t access.

Steps to firing your 3PL provider:

1. Review your service agreement and termination clause
2. Audit current issues and gather documentation (missed KPIs, complaints, etc.)
3. Evaluate and select your replacement 3PL
4. Notify the current provider formally, in writing
5. Plan a clean transition timeline: avoid fulfilment during the move
6. Coordinate outbound shipments, inventory transfer, and system cutover

Good transitions depend on strong planning. Schedule product moves in waves to avoid stockouts or double shipping. Reduce outbound orders during the move. Tell customers in advance if any delays are expected, or build in buffers to absorb hiccups.

During the final weeks, remain professional. Even if the relationship has gone sour, you’ll need their cooperation to transfer goods and data without disruption. Keep emotion out of the process, and focus on finishing strong.

Finding a Good 3PL

Once you’ve decided to move on from your current 3PL, the next step is finding one that won’t repeat the same problems. A strong logistics partner brings transparency, stability, and flexibility—things your last provider likely failed to deliver.

You’re not just looking for warehouse space. You’re choosing a partner who will handle customer orders, manage your inventory, and represent your brand during the most critical stage: fulfilment. That means their systems, people, and processes need to align with how you run your business.

When evaluating a new 3PL, look for:

• A willingness to share SOPs and walk you through how they operate
• Transparent reporting and access to inventory, order, and performance data
• Proven ability to meet SLAs with real clients in your industry or category
• Clear point-of-contact structure (client success, ops, IT, etc.)
• Tech compatibility: EDI, API, or integrations with your existing platforms
• A scalable footprint, so you don’t outgrow them in 18 months

A good 3PL won’t promise everything. Instead, they’ll clearly define what they can do—and what they don’t do. That honesty gives you better alignment from day one and fewer surprises later.

You should also look at culture and responsiveness. If you’re getting generic responses or delayed replies during the sales process, it won’t improve once you’re locked in. Treat the search as a long-term hiring decision, not just a vendor swap.

See our guide on how to pick a great 3PL partner

Offboarding Your Old 3PL

Offboarding a 3PL is more than just giving notice. You’ll need to extract inventory, disconnect systems, and cleanly hand over data—without causing chaos in the process.

Start with a clear plan. Map out your final shipping date, product transfer schedule, and system shutdown timeline. Make sure both teams—yours and the 3PL’s—are aware of key milestones and responsibilities.

Inventory handover is the most important step. Confirm counts in advance and be ready to reconcile discrepancies. In many cases, product leaves in waves, usually through regular outbound shipments over 1–2 weeks. A smooth exit depends on clear communication and active coordination between both parties.

To manage the exit:

1. Stop fulfilling orders through the outgoing 3PL during the move
2. Communicate clearly with customers if delays may occur
3. Keep outbound volume low during transfer weeks
4. Get written confirmation of final inventory levels and shipment tracking
5. Collect any outstanding documentation or reports

Always maintain a professional tone. Even if the relationship ended poorly, you still need full access and cooperation until the last box is out. If the 3PL refuses to release goods or drags their feet, refer to your contract and loop in legal support if needed.

Onboarding Onto a New 3PL

Your new 3PL should already be looped in before the offboarding process begins. Their team must be prepared to receive product, configure systems, and take over fulfilment without any major delays.

Start with a structured onboarding timeline. Set expectations for system integration, inventory receipt, location setup, and first-ship dates. Give their operations team everything they need—product specs, SKU data, packaging guides, and order volume forecasts.

Ideally, you’ll move product in batches and test systems before going live. That gives both teams a chance to troubleshoot early, without putting customer orders at risk.

Steps to onboarding your new 3PL:

1. Send a full product and location file in advance
2. Set up EDI/API or manual order entry processes
3. Confirm storage layouts and picking methods
4. Test order flows and tracking/reporting dashboards
5. Schedule first outbound orders after inventory is in place

Avoid launching fulfilment until everything is tested. Some businesses pause customer shipments briefly or stagger promotions to reduce demand during the cutover. If downtime isn’t an option, build in buffer stock and plan for added headcount during the first few weeks.

A strong 3PL onboarding feels controlled. You shouldn’t be left guessing. With the right partner, the move becomes a one-time project that positions your supply chain for long-term growth.

PiVAL is a 3PL – We Can Help You

If your current logistics provider is making your job harder, not easier, PiVAL is ready to step in. We offer a full 3PL solution built around reliability, transparency, and long-term partnership. Our coast-to-coast network covers every major region in Canada, with warehousing facilities in Montreal, Toronto, Guelph, and Vancouver. Whether you’re moving into a new market or consolidating your supply chain, we can support your growth with consistent service and local expertise.

We believe every client deserves a single point of contact—someone who knows your account and can answer questions without redirecting you through layers of departments. That dedicated approach simplifies communication and helps you stay in control, even during complex transitions or seasonal spikes.

PiVAL is designed to flex with your business. From startups looking to stabilize operations to established brands scaling across the country, we tailor our services to match your current needs—and grow with you as they evolve. Our infrastructure and teams are built to scale, and we’re just as comfortable handling 5,000 SKUs as we are managing high-volume, single-product shipments.

We specialize in sectors where logistics precision matters. Our clients include companies in tires, manufacturing, construction materials, retail, and pulp and paper. These industries demand accuracy, responsiveness, and high service levels—and we deliver.

If you’re preparing to leave your current 3PL or simply exploring better options, PiVAL can step in quickly and professionally. We’ll guide the transition, handle the details, and make sure you don’t miss a beat.

PiVAL specializes in:

• Automotive Parts and Tires (OE & RE)
• Retail Suppliers
• Manufacturing
• Pulp & Paper
• Construction Sites

Our warehouses are located in:

• Montreal
• Toronto
• Guelph
• Vancouver

Contact a PiVAL logistics expert today