Inside the First 90 Days: How to Measure If Your 3PL is Delivering

Inside the First 90 Days: How to Measure If Your 3PL is Delivering
Bringing a new 3PL partner on board is a high-stakes decision. The right partnership can unlock scalability, efficiency, and customer satisfaction. The wrong one can introduce risk, operational disruption, and hidden costs.
In the first 90 days, operations directors are under pressure to prove that outsourcing is not only functional but adds measurable value. This period is the proving ground for measuring 3PL success, and the best way to achieve this is by setting clear onboarding KPIs and using them to guide decision-making.
Why the First 90 Days Matter
The onboarding phase is not just about transferring stock and configuring systems. It is about validating whether your provider can deliver on service levels under real-world conditions. According to McKinsey, companies that successfully integrate supply chain partners in the early stages see stronger long-term resilience and efficiency gains.
For eCommerce retailers, customer expectations are uncompromising: next-day delivery, real-time tracking, and seamless returns are now standard. If these expectations are not met during onboarding, recovery later can be costly and disruptive.
Defining 3PL Onboarding KPIs
KPIs must be measurable, objective, and relevant to both operational and customer-facing outcomes. Typical categories include:
Order Accuracy
- Definition: Percentage of orders picked, packed, and shipped without error.
- Target: 99.5% or higher.
- Why it matters: Errors directly affect customer satisfaction and drive up return costs.
SLA Adherence
- Definition: Percentage of orders shipped within the agreed time window.
- Target: 98 – 99% on-time performance.
- Why it matters: Missed SLAs damage reputation and increase churn risk.
Inventory Accuracy
- Definition: Alignment between WMS records and physical stock counts.
- Target: 98% or higher.
- Why it matters: Stock discrepancies cause lost sales and customer frustration.
Carrier Performance
- Definition: On-time delivery rates, damage rates, and escalations across carriers.
- Target: Dependent on network, but ≥95% on-time delivery is standard.
- Why it matters: Multi-carrier strategies can add resilience but also complexity. Poor oversight in the first 90 days often results in service fragmentation.
Tracking and Reporting Structures
Establishing dashboards and review cadences is as important as defining the metrics. Best practice includes:
- Weekly KPI reports: Short, operational snapshots covering order accuracy, SLA adherence, and carrier data.
- Monthly performance reviews: In-depth discussions to evaluate new 3PL performance, benchmarked against industry standards such as IMRG’s delivery performance insights.
- Quarterly audits: Broader assessments covering technology integration, cost variance, and scalability potential.
By aligning reporting structures to your business cadence, you avoid both “data overload” and blind spots.
Early Warning Signs to Watch
The first 90 days often surface red flags. Operations directors should be alert to:
- Sustained SLA breaches – repeated late dispatches despite low order volumes.
- Carrier escalations – frequent issues are being pushed back onto the retailer to resolve.
- Rising SKU complexity – new product lines outpacing the 3PL’s system flexibility.
- Communication gaps – lack of proactive updates or transparency on issues.
These are strong indicators that the partnership may not scale effectively.
Balancing Data with Context
KPIs should never be read in isolation. For example:
- A dip in SLA performance during peak may reflect wider carrier network strain rather than 3PL negligence.
- Lower inventory accuracy in the first month may stem from reconciliation issues as stock transfers into the warehouse.
The key is to distinguish between teething issues and systemic risks. Transparent communication and documented improvement plans should accompany any underperformance.
Building the Foundations for Long-Term Success
By the end of the first 90 days, operations directors should be able to answer three critical questions:
- Are baseline service levels consistently being met?
- Does the 3PL demonstrate proactive problem-solving and scalability?
- Is there data-driven evidence that customer experience is protected or improved?
If the answer to any of these is “no”, it is a sign to escalate, renegotiate, or reconsider the partnership.
Ready to Put Your 3PL to the Test?
At Pro FS, we know the first 90 days can make or break a logistics partnership. That’s why our onboarding process is designed around the KPIs that matter most, from order accuracy to SLA performance. We work transparently with every client, providing the data, reporting cadence, and operational support needed to build confidence from day one.
If you want a partner who can prove their performance, not just promise it, Pro FS is ready to help.
Get in touch with Pro FS to discuss how we can support your fulfilment goals and ensure your next 90 days set you up for long-term success.