Insprie

Situation 07

The 3PL or supply chain is failing.

Orders are late, stock is inaccurate, and customers are the ones finding out.

The situation

Service levels have dropped. Stock accuracy is unreliable, orders are shipping late or incomplete, and retailers are raising compliance issues. The systems cannot show where the problem starts.

Every week this continues, it costs distribution, margin and credibility.

What usually goes wrong

  • The 3PL is blamed before the demand plan and the master data are examined.
  • Nobody is measuring performance against the contract that was signed.
  • Manual workarounds are built until the real process is invisible.
  • A transition to a new provider is attempted at peak season.
  • Commercial teams keep promising service the operation cannot deliver.

What needs to be established first

  • What is actually failing: inbound, inventory accuracy, picking, carriers, or the data?
  • What does the contract commit the provider to, and what is being measured?
  • How accurate is the demand plan the operation is working to?
  • What is the cost of failure per week in fines, lost sales and remediation?
  • Is this recoverable with the current provider or not?

The first 72 hours

  • Establish a single daily operating rhythm with the provider and internal teams.
  • Prioritise the accounts and orders where failure costs the most.
  • Get an accurate stock position, even if it has to be counted.
  • Communicate honestly with the retailers affected.

The next 30 to 100 days

  • Rebuild inventory accuracy, master data and order processes.
  • Reinstate performance measurement against contracted service levels.
  • Fix demand planning and replenishment so the operation is working to a real plan.
  • Decide on remediation or transition, and plan any move away from peak.
  • Design the fulfilment model the business needs for the next three years.

Capabilities involved

Related intelligence

  • Your supply chain just broke.

    Your manufacturer has stopped producing. Your 3PL cannot ship. Your packaging is delayed. Unfortunately, customers still expect their orders.

Other situations

Certain details have been withheld or generalised to protect client confidentiality.

Talk to us about your situation

If this resembles a business you own, govern or advise, tell us where it sits.

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