From Rigid Systems to Lack of Training: The Reasons Behind Incumbent 3PLs' Inventory Management Struggles

April 12, 2023

Incumbent third-party logistics (3PL) companies have been around the block a few times, but despite their experience, they still struggle with keeping track of inventory and maintaining a low fulfillment error rate. This can be a real bummer for businesses, leading to lost sales, frustrated customers, and a damaged reputation. So, what's the deal? Why are these long-standing companies having trouble getting it right?

Here are a few reasons why incumbent 3PL companies struggle with inventory management and low fulfillment error rates:

Technology? What's that?:

Incumbent 3PLs might not be keeping up with the latest tech and automation tools, leading to manual and error-prone processes. And when it comes to keeping track of inventory, that's a recipe for disaster.

Rigid Systems:

Their systems might be a bit rigid and not flexible enough to adapt to changing customer needs. This can lead to a lack of agility and the inability to quickly respond to changes in demand.

Training? Nah, we're good:

They might not invest in training their employees on the latest best practices for inventory management and fulfillment. This can result in human error and a lack of expertise in managing complex inventory systems.

Change? We like things the way they are:

They may be resistant to change, sticking to traditional methods instead of embracing new technology and practices. This can result in a lack of innovation and the inability to improve processes and systems.

In conclusion, incumbent 3PL companies struggle with inventory management and low fulfillment error rates because of a lack of technology adoption, rigid systems, inadequate training, and resistance to change. But don't worry, there are 3PLs out there who are committed to investing in technology, training, and innovation. So, if you want to avoid the inventory management blues, it might be time to find a 3PL that's ready to get with the times.

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