How to Ensure a Smooth Transition From Your Incumbent 3PL to Another
Switching healthcare Third-Party Logistics (3PL) providers is a serious undertaking—especially in the biopharma industry, where precision and compliance are critical. If your company is planning a 3PL transition in 2025, careful planning and execution are key to avoiding disruptions and ensuring a seamless changeover.
Here’s what you need to know to make the transition as smooth as possible.
Why Change Your 3PL Provider?
Your 3PL provider should be a true partner—one that adds value to your business every day. Unfortunately, many small to mid-sized biopharma companies find themselves feeling like a small fish in a big pond. They don’t always get the attention they deserve, leading to issues like lost products, shipping delays, and poor customer experiences.
If your current 3PL provider isn’t delivering or refuses to address concerns, it may be time to make a change. There are logistics companies out there that prioritize relationships, execution, and customer success—so don’t settle for anything less.
Key Areas to Focus on During a 3PL Transition
- Data Migration: Make sure all inventory, sales order and serialization data transfer seamlessly.
- Supply Chain: Ensure smooth operations by minimizing delays, maintaining order accuracy, preventing customer disruptions, and understanding the 3PL’s return handling process.
- Compliance & Regulatory: Stay abreast of industry regulations, especially in biotech and pharma.
- Employee & Customer Alignment: Keep all stakeholders informed and aligned throughout the process.
- Inventory Transfer: Move product without interrupting ongoing business operations.
Best Practices for a Seamless Transition
Develop a Strategic Transition & Communication Plan
Map out key milestones, assign responsibilities, and create a phased transition plan that includes data migration, system integration and employee training.
Ensure Technology Compatibility
Your new 3PL provider should integrate seamlessly with your existing Warehouse Management System (WMS), Enterprise Resource Planning (ERP) software and track and trace system. Make sure to clearly define reporting and data integration requirements and get sign-off from both parties.
Prioritize Compliance & Regulatory Requirements
Ensure all necessary licenses, certifications, and validation documents are in place. Your 3PL should be adhering to cGMP (Current Good Manufacturing Practices) guidelines which are critical for proper storage, handling, and distribution (e.g., temperature control monitoring and traceability).
Keep Stakeholders in the Loop
Monitor key performance indicators (KPIs) to ensure service levels remain strong. This is also a great time to introduce new KPIs where necessary.
Track Performance Metrics
Track key performance indicators (KPIs) to make sure service levels are maintained. Look to include new KPIs where appropriate.
Mitigate Risks & Plan for the Unexpected
Have a contingency plan (or three). A well-thought-out Plan A, B, and C will help you navigate any unforeseen challenges.
Leverage Experienced Support
A transition is only as smooth as the team managing it. Involve seasoned logistics professionals and dedicated subject matter experts to oversee the process.
Develop a Formal Warranty Period Post Go-Live
Track all open items from the previous 3PL such as returns, AR aging and chargebacks to ensure they are closed out.
Final Thoughts
A well-executed 3PL transition can lead to stronger partnerships, improved logistics performance, and long-term operational efficiency. By taking a strategic approach and working closely with both your outgoing and incoming providers, you can ensure a smooth and successful migration.
Is Your Company Considering a 3PL Switch?
At LogiCare3PL, we specialize in seamless transitions that keep your business running smoothly. Contact us today to learn how we can support your 3PL migration!