Why do companies change out incumbent third party logistics providers (3PLs)? It depends on whom you ask.

The folks at event company eyefortransport recently surveyed a group of both 3PL executives and 3PL users to understand their perspectives on why existing relationships end. While there was a certain degree of ageement, there were also some interestung differences worth noting.

For example, as shown in the graphic below, while both 3PLs and users agreed that Poor Service was the chief cause of relationships ending, more 3PLs (65%) thought it was a top cause than did users, at 51%.

Conversely, the second highest response for users was "Cost Creep," at 45% of respondents, while Cost Creep ranked just 8th on the list for 3PL respondents, at 30%. That would say costs are a bigger reason for companies not renewing 3PL contracts than many 3PLs believe.

Source: eyefortransport

Perhaps the most interesting number has to do with expectations. 41% of 3PLs think "Unrealistic Expectations" is a key factor in non-renewals, versus just 14% of users who feel that way. So, either users do often have unrealistic expectations for 3PL performance that will inevitably lead to disapppointment, or they have realistic expectations that 3PLs just don't see that way.

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