Hi there, a recent post was published explaining that SCS is currently full and what options we can offer coming up. The post was not emailed (unintentionally) you can access it here http://www.supplycs.com/sorry-3pl-fulfillment-division-full-options-note-not-effect-existing-scs-customers-will-always-accomodate-existing-accounts/
We fully expect existing customers to test the market from time to time to ensure SCS is competitive, it’s prudent, that said we estimate 80% of 3PL purchasers procure 3PL services incorrectly, there is a section in the previous post headed Ready, Fire, Aim that we recommend any one , including SCS clients who are testing the market or looking to purchase 3PL services, read.
It’s a huge decision choosing a 3PL and the outcomes generally have a material impact on your business. SCS has a reputation for not loosing accounts once we win them, our surveys show 100% of our clients are either happy or very happy with us (we always have room to improve of course) contrast this to many 3PL providers who sell a similar story at the onset but end up delivering a completely different outcome, it’s a minefield navigating through a 3PL offer.
Whilst we claim the highest customer retention in our industry, last year, we lost two large accounts, both were very happy with our service but felt they could get a better price. We were devastated but fully supportive of the decision and helped them through the process, we left on excellent terms. The cost to move is huge in terms of business interruption, cash and the risk is higher than you’d think, especially when you’re sitting down listening to the salespersons pitch. One of the accounts is now coming back, the experience was shocking but it now has a happy ending. The other is in a worrying state, the provider has not delivered on the promises, the proof of savings they provided supported a cost reduction, when we modeled it we were able to show it was actually more expensive (data is easy to manipulate if you are not a nerd like our guys) and the service is appalling, they are in jeopardy of loosing agencies and they having to hire a specialist staff member just to manage the 3PL now, at significant cost. We deeply regret we can’t take them back, even though we would want to, they are a great company but we’re full, we feel really bad for them, they are honestly a terrific company who tried to do the right thing for their business and have ended up in a materially worst position than they expected now shackled to an underperformed logistics provider who promised them all the things they asked for and delivered something else.
I wish I had had the time and the chance to develop and present the section Ready Fire, Aim to these clients before they made their decisions (I’ve lost sleep over it), I would have saved them tens and in the latter case hundreds of thousands of dollars in cash and pain. Hopefully if you are in the market looking for a 3PL, whilst we can’t help you currently, some of the counsel offered in that section will be of tremendous benefit to you. Selecting a really good 3PL will do wonders for your business.