How to seamlessly transition from in-house fulfillment to a 3PL without disrupting your business

As your ecommerce brand scales, what once worked in your garage, warehouse or small fulfillment centre can quickly become a bottleneck. Rising order volumes, multi-channel complexity and customer expectations for fast, reliable delivery are enough to stretch even the most organized in-house operation.

That’s where integrated third-party logistics (3PL) providers come in, offering the infrastructure, expertise and flexibility you need to grow without the growing pains.

In this article, we walk you through how to move from in-house to outsourced fulfillment smoothly, what to look for in an international 3PL serving Canada, the US and the UK, and how to unlock operational advantages that fuel long-term ecommerce growth.

Why growing brands choose 3PLs

As your ecommerce business grows, managing logistics in-house can quickly become complex, costly and time-consuming. Transitioning to a 3PL provider offers a smart, scalable solution.

Here’s why it might be the right move for your brand:

Scalability: 3PLs can flex with your business, handling seasonal peaks and growth surges without requiring heavy investments in new space, staff or infrastructure.
Cost efficiency: Outsourcing logistics reduces overhead expenses tied to warehousing, labour, and technology, turning fixed costs into variable ones aligned with your order volume.
Focus on core business: Free up your team to focus on what drives your brand, like product innovation, marketing and customer experience, while fulfillment experts handle the logistics.
Access to advanced technology: Many 3PL providers offer sophisticated tools for inventory management, order tracking and real-time analytics that would be costly and complex to build in-house.
Improved customer experience: A McKinsey survey found the top five delivery preferences among US consumers are cost, shipping transparency, flexible returns, delivery location options and speed. The right 3PL can help you meet and exceed those expectations.

Signs it’s time to move to a 3PL

According to research by Salesforce, 57% of customers have stopped buying from a company because a competitor provided a better experience. This makes it critical to evaluate whether your current fulfillment processes are helping you meet, or falling short of, your customers' expectations.

Here are key signs it might be time to partner with a 3PL:

Frequent delays or errors in order fulfillment
Difficulty scaling operations during peak seasons
Rising operational costs without noticeable service improvements
Limited visibility into inventory levels and order status
Struggling to meet evolving customer expectations, such as faster delivery times or free shipping, now standard for many US consumers
Uncertainty about how well your current fulfillment setup supports your business growth

Identifying your requirements

Before partnering with a 3PL, take a step back and get a clear picture of your logistics and fulfillment needs.

Here’s what to consider:

Inventory management: What types of products do you sell, and in what volumes? Do you need special handling for items like perishables, fragile goods or high-value products?
Order volume and seasonality: Look at your order patterns: When are your busiest times, and how much do your volumes fluctuate? This will help you find a 3PL that can scale with you during peak seasons and stay efficient during slower periods.
Shipping and delivery needs: Who are you shipping to, and where? Will you need both domestic (within Canada, the US or the UK) and international delivery options? What kind of delivery times do your customers expect: same-day, two-day or standard shipping? Make sure your fulfillment partner can meet those expectations.

Getting these details right upfront will help you choose a 3PL that’s truly aligned with your business and your customers.

Defining key performance indicators (KPIs)

Setting clear KPIs is essential for measuring the performance of your 3PL partner and ensuring they’re meeting your expectations. Some important metrics to track include:

Order accuracy rates: the percentage of orders shipped correctly and on time
Average delivery times: how long it takes for orders to reach your customers
Inventory accuracy: the reliability of inventory counts and stock availability
Customer satisfaction scores: feedback and ratings from your customers about their delivery experience

These KPIs will give you a clear view of how well your fulfillment operations are supporting your customer experience.

Researching potential 3PL partners

Once you’ve outlined your needs, it’s time to start researching 3PL providers serving Canada, the US or the UK. Here’s what to look for:

Industry expertise: Choose a 3PL with proven experience in your industry. A provider that understands your market will be better equipped to handle your unique challenges and fulfillment requirements.
Service offerings: Make sure the 3PL offers all the services you need, from warehousing and inventory management to order fulfillment, shipping and returns processing.
Technology integration: Check that the 3PL’s technology stack integrates smoothly with your existing systems (like Shopify or other ecommerce platforms) for real-time visibility and efficient operations.
Scalability: Look for a partner that can grow with you, adjusting to seasonal peaks and business expansion without compromising service quality.
Geographic reach: Ensure their distribution network covers your key markets, especially in major hubs like California, Texas or New York, to help optimize delivery times.
Customer support: Evaluate their service model. Will you have a dedicated account manager or support team to help troubleshoot issues and optimize performance as your business evolves?

Planning the transition to a 3PL

A smooth, well-structured transition plan is key to a successful move to a new 3PL partner. A reliable 3PL will work with you to map out a phased migration, including:

Timeline: Develop a detailed timeline with clear phases, deadlines and milestones to track progress.
Inventory transfer: Carefully plan how and when to move your inventory to the 3PLs facilities, ensuring you avoid stockouts or service interruptions during the handover.
System Integration: Collaborate closely with your 3PL to connect inventory management, order processing and other essential systems for real-time updates and operational continuity.

Communicating the change

Clear, proactive communication is essential throughout the transition. Keep everyone informed, including:

Internal teams: Ensure your staff understands why the switch is happening, how it benefits the business and what changes they can expect in their day-to-day roles.
Suppliers: Notify suppliers of the transition to maintain smooth inventory flow and delivery schedules.
Customers: If there is a possibility of temporary changes in delivery times or processes, consider informing customers beforehand to manage expectations and maintain trust.

Executing the transition

With your plan in place, it’s time to act. Here are the key steps to help ensure a seamless transition:

Kick-off meeting: Hold a joint meeting with your internal team and the outgoing and incoming 3PL teams to align on roles, responsibilities, timelines and expectations.
Inventory transfer: Begin moving inventory according to your plan, carefully monitoring each stage to address any issues.
System testing: Before going live, thoroughly test all integrated systems, including order processing, inventory tracking, and reporting, to confirm everything is working smoothly.

Monitoring performance

After the transition, closely monitor the performance of your new 3PL partner. Utilize your documented KPIs to evaluate their effectiveness, regularly review performance metrics, and provide feedback to ensure continuous improvement.

Optimizing your 3PL partnership with Metro Supply Chain

At Metro Supply Chain, we believe a successful logistics partnership goes beyond transactions; it’s about collaboration, transparency and fuelling long-term growth. Here’s how we work alongside our partners across Canada, the US and the UK to help them get the most out of their 3PL experience.

Building a strong, collaborative relationship

Seamless logistics starts with open communication and shared goals, which is why we prioritize building genuine partnerships. Here’s how we support your business:

Regular communication: Our dedicated account managers schedule ongoing check-ins to review performance, address challenges and discuss new opportunities, keeping us aligned with your business as it grows.
Collaborative problem-solving: From seasonal spikes to unexpected disruptions, our team works closely with yours to develop smart, scalable solutions that keep your operations running smoothly.
Continuous improvement: Optimization never stops. We proactively bring new ideas and recommendations that improve pick-pack accuracy, shorten transit times and reduce costs to strengthen your logistics performance in Canadian, US and UK markets.

Leveraging technology for visibility and control

Our advanced logistics systems give you real-time visibility and data-driven insights, so you can manage your operations with confidence:

Real-time tracking: Know where your products are at every stage across every region. This visibility helps your team make faster, smarter decisions and better serve your customers.
Data-driven insights: Our analytics tools deliver clear, actionable insights into your logistics performance, regional demand trends and opportunities for cost optimization, helping you stay ahead in a competitive market.

Driving growth and long-term success

Switching from in-house fulfillment to a scalable 3PL solution can enhance operational efficiency, delivery speed and customer satisfaction, facilitating a smooth transition and future growth for your business.

At Metro Supply Chain, we’re more than just a logistics provider; we’re your strategic partner. Whether you’re expanding into new markets or managing rapid ecommerce growth, we’re here to deliver the expertise, infrastructure and innovation you need to scale successfully.

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