Your customers expect fast order delivery. Some 3PLs can meet these customer expectations and offer ship speeds as fast as one day, like
Amazon Multi-Channel Fulfillment (MCF) does.
To assess if your 3PL’s delivery performance is meeting industry benchmarks, you should monitor key performance indicators (KPIs) like the time it takes for your order to leave the fulfillment center (or “click-to-ship”), and the time it takes from order placement to delivery (or “click-to-delivery”). A drop in your 3PL’s ship speeds could have a negative impact on customer experience, and lead to a decrease in customer retention.
When thinking about your 3PL’s delivery performance, it’s not only important to consider click-to-delivery speed, but also keep in mind your lead times. Track your inbounding speed and note your 3PL’s speed and efficiency in moving your goods from “dock to stock” – i.e. receiving products and preparing them to be fulfillment-ready.
If your 3PL is not meeting your need for speed, it may be time to consider switching providers.