Outsourcing logistics to a third-party provider (3PL) can transform your operations. You gain access to warehousing, transport networks, and supply chain expertise without the overheads of managing it all yourself. However, while a strong 3PL relationship unlocks efficiency and scalability, it isn’t without risks. Many businesses discover common 3PL problems once they’ve partnered with a provider, issues that slow down operations, frustrate customers, and eat into margins.
The good news? Most of these challenges can be solved with the right structures in place and avoided by choosing a partner who takes them seriously from the start.
1. Communication Breakdowns
One of the most common frustrations businesses face is poor communication. You send an email about a delayed order and wait days for a reply. You try to track a shipment and get vague answers instead of clarity. Miscommunication quickly erodes trust and creates costly misunderstandings.
The solution: clear SLAs
Establish clear Service Level Agreements (SLAs) that outline expected response times and escalation processes. Pair these with regular review meetings so both sides stay on the same page.
At Denholm Good Logistics, communication is central to how we operate. Every client has a dedicated account manager backed by operational teams who know their business inside out. We set clear SOPs for communication, whether that’s daily reporting, weekly calls, or automated system updates, so there’s no ambiguity. If issues arise, we proactively flag them along with recommended solutions, ensuring clients never feel left in the dark.
2. Inventory Discrepancies
When stock levels don’t match reality, it causes ripple effects across your business. You oversell products you don’t have or underutilise items sitting idle in the warehouse. Inventory errors frustrate customers and make forecasting unreliable.
The solution: solid WMS
A robust Warehouse Management System (WMS) with real-time tracking is key. It ensures every movement (receipts, picks, and returns) is logged instantly and reflected across your systems. Regular cycle counts further strengthen accuracy.
At Denholm Good Logistics, we use advanced WMS technology that integrates directly with our clients’ systems. That means you see the same data we do, updated in real time. We also tailor reporting dashboards to each business so that you can track stock levels, SKUs, and order flows at a glance. Our team runs regular checks and reconciliations to ensure discrepancies are identified and resolved before they impact your customers.
3. Poor Delivery Performance
Customers today expect fast, reliable delivery as standard. If your 3PL fails to hit delivery windows, damages goods in transit, or makes too many mistakes, it directly reflects on your brand. Poor delivery performance can quickly lose you repeat business.
The solution: regular metrics review
Regularly review delivery metrics with your 3PL, including on-time performance, damage rates, and returns. Build accountability into SLAs, and ensure your provider has the capacity to scale during peak periods without cutting corners.
At Denholm Good Logistics, we’re proud of our high standards in customer service and delivery. Our commitment has been recognised through submissions to the Supply Chain Excellence Awards, including categories for customer service and visibility. We work with clients to forecast demand and flex capacity during peak periods, so service levels remain consistent year-round. Every delivery is monitored, and exceptions are communicated proactively, with solutions in place to minimise disruption.
4. Lack of System Integration
One of the most common 3PL problems that frustrates businesses is clunky systems. If your order management system doesn’t integrate smoothly with their WMS or tracking tools, you end up with manual data entry, duplicated work, and increased risk of errors.
The solution: proven technology for tracking and integration
Choose a 3PL that offers seamless integration with your existing systems, whether that’s ERP, e-commerce platforms, or custom solutions. APIs and cloud-based platforms make real-time data sharing simple and secure.
At Denholm Good Logistics, we invest heavily in system integration. Connect, our logistics tracking tool, integrates with clients’ platforms, enabling real-time visibility of inventory, orders, and shipments. We work closely with your team during onboarding to ensure smooth integration and provide customised dashboards that reflect the KPIs most important to your business.
5. Hidden Costs and Pricing Confusion
Unclear billing is another common 3PL issue. You expect one price but get hit with unexpected surcharges for storage, handling, or transport. Not only do hidden costs harm budgets, but they also strain trust in the partnership.
The solution: increased pricing transparency
Transparency is everything. Ask your 3PL to break down their pricing structure in detail and explain what is and isn’t included. Regularly review invoices to spot anomalies early.
Our team at Denholm Good Logistics operates with complete transparency on pricing. We provide clear breakdowns of costs upfront, so clients know exactly what they’re paying for. If there are variables (e.g. peak season surcharges), we agree on these in advance so there are no surprises. Our approach builds trust and makes budgeting straightforward.
6. Limited Scalability
Many businesses find that their 3PL works well during normal operations but struggles to cope with seasonal spikes or sudden growth. Limited capacity leads to missed orders, longer lead times, and frustrated customers.
The solution: flexible infrastructure and processes
A good 3PL should have flexible infrastructure and processes to scale up or down with demand. This might include additional warehouse space, a network of carriers, or cross-trained staff who can support during peaks.
At Denholm Good Logistics, scalability is built into our model. Our UK-wide warehouses, port-centric facilities, and international freight forwarding network give us the flexibility to expand capacity quickly. We establish bespoke SOPs for each client to handle seasonal or unexpected surges, ensuring service levels are maintained no matter the volume.
7. Compliance and Customs Complexities
Cross-border trade brings its own risks, from customs delays to compliance failures. Post-Brexit, many UK businesses have faced new documentation requirements and unpredictable delays that disrupt supply chains. If your 3PL isn’t experienced in customs clearance, you risk major headaches.
The solution: customs expertise
Partner with a 3PL with proven customs expertise. They should handle documentation, regulatory checks, and compliance on your behalf, ensuring goods move smoothly across borders.
Denholm Good Logistics has in-house customs specialists who manage everything from declarations to regulatory compliance. As an experienced freight forwarder, we ensure shipments move seamlessly through ports and across borders. Post-Brexit, we’ve helped many clients adapt to new rules and avoid costly delays, using our expertise to keep their supply chains flowing.
8. Lack of Proactive Problem-Solving
Too often, businesses only hear from their 3PL when something has gone wrong. A reactive approach creates frustration, especially when problems could have been anticipated or prevented.
The solution: proactive risk monitoring and continuous improvement
Look for a 3PL that proactively monitors risks, flags potential issues, and brings solutions before you ask. Regular performance reviews and continuous improvement plans should be part of the service.
At Denholm Good Logistics, we believe a logistics partner should anticipate challenges, not just react to them. Our teams track performance metrics closely, conduct regular reviews, and identify opportunities for improvement. We flag risks early and work with clients to put contingency plans in place, so you stay ahead of potential issues rather than chasing them after the fact.
Choosing the Right 3PL Partner
Most common 3PL problems aren’t inevitable. They stem from weak processes, a lack of transparency, or a mismatch between client and provider. The best way to avoid them is to choose a partner who has the right foundations in place from day one.
When evaluating 3PLs, go beyond the basics and consider the following:
- Industry experience – a 3PL that understands your sector’s challenges, whether that’s retail, manufacturing, or e-commerce, will adapt faster to your specific needs.
- Cultural fit and values – logistics is a long-term relationship. Shared values around customer service, transparency, and sustainability make day-to-day collaboration smoother.
- Financial stability – the logistics sector has seen several providers collapse in recent years. Partnering with a well-established, financially resilient business protects your supply chain from disruption.
- Accreditations and standards – look for providers with recognised accreditations (such as AEO, ISO, or BRC) as proof of compliance and operational excellence.
- Continuous improvement mindset – the best 3PLs don’t just maintain service levels. They actively look for ways to save you time, reduce costs, and add value year after year.
At Denholm Good Logistics, we’ve built our reputation by addressing the issues mentioned above head-on. Our heritage, technology, and client-first culture mean we understand the challenges businesses face, and we’re committed to solving them.
Talk to a Partner Who Anticipates Issues; Not Just Reacts to Them
No logistics setup is completely challenge-free. But the difference between a struggling partnership and a successful one lies in how those challenges are managed. With the right provider, problems don’t derail your supply chain. They become opportunities to strengthen it.
At Denholm Good Logistics, we’re ready to show you how a 3PL relationship can work at its best. Get in touch today to discuss your logistics needs or schedule a site visit.
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