#1 Supply Chain and Logistics Consultants
Logistics Bureau 3PL Audits
Is your 3PL underperforming? Before you go to market — try this first.
This Is For You If…
You’re unhappy with your 3PL’s performance. Maybe costs are increasing, or service levels are falling? This happens a lot, and sometimes the first reaction is to “go to market.” But preparing and running a tender or RFP is no small task, as it takes time, internal resource, and creates real operational disruption.
And even when you do go to market, there’s no guarantee the next provider will be any better. You’re often trading a known problem for an unknown one.
What if you didn’t need to? What if you could reduce costs and improve performance without changing provider? The truth is, most 3PL relationships that appear broken are actually fixable. The issues usually come down to rate structures that no longer reflect your operation, service expectations that were never clearly defined, or a gradual drift in performance that nobody has formally addressed. These are solvable problems.
Here at Logistics Bureau we’ve been fixing 3PL relationships since 1997. Hundreds of contracts across 22 countries. And our 3PL audit process very often negates the need for an RFP and all the disruption that entails. We go in, find the real source of the problems, and give you and your 3PL a clear path to getting the relationship back on track.
Here’s what that process actually looks at.
What You’ll Get
A 3PL audit looks at the multiple operational and strategic aspects of the logistics provider you’re using. Here’s what that covers.
1) Operational Performance Assessment
An audit usually starts with an operational assessment where auditors look at key metrics, such as order accuracy, pick rates and on-time shipments against service level agreements. This operational review goes into inventory management practices, everything from cycle counting to shrinkage and stock rotation.
2) Technology Infrastructure Review
This is where auditors assess the 3PL’s Warehouse Management System (WMS), its integration with your enterprise systems, and the robustness of data security. The WMS you use within your warehouse or distribution centre is extremely important, especially as the warehouse evolves into something more advanced. You should give particular attention to the accuracy and completeness of reporting mechanisms, as these give visibility into daily operations.
3) Quality Management Systems
Quality management includes documentation of Standard Operating Procedures, looking at quality control checkpoints and staff training programs. This part of the audit verifies that all processes are compliant with industry regulations and have the necessary certifications. It also looks at how well these quality systems are embedded in daily operations and how effective they are in preventing errors and maintaining service standards.
4) Financial Health and Stability
Financial health and stability assessment gives you a deeper insight into the long-term viability of the 3PL partnership. This involves reviewing financial statements, insurance coverage and liability protection, and transparency of pricing structures. It also involves understanding historical cost trends and future pricing projections — helping identify potential risks and opportunities in the relationship.
5) Risk Management and Compliance
An often overlooked part of the audit. This covers business continuity plans, physical and data security, and environmental compliance — including workplace safety and labour practices to ensure regulatory compliance and operational resilience.
And if the audit confirms the relationship can’t be fixed? We’ll tell you honestly — and we can help you through the RFP process from there. But that should be the last option, not the first.
What You’ll Get
A 3PL audit looks at the multiple operational and strategic aspects of the logistics provider you’re using. Here’s what that covers.
1) Operational Performance Assessment
An audit usually starts with an operational assessment where auditors look at key metrics, such as order accuracy, pick rates and on-time shipments against service level agreements. This operational review goes into inventory management practices, everything from cycle counting to shrinkage and stock rotation.
2) Technology Infrastructure Review
This is where auditors assess the 3PL’s Warehouse Management System (WMS), its integration with your enterprise systems, and the robustness of data security. The WMS you use within your warehouse or distribution centre is extremely important, especially as the warehouse evolves into something more advanced. You should give particular attention to the accuracy and completeness of reporting mechanisms, as these give visibility into daily operations.
3) Quality Management Systems
Quality management includes documentation of Standard Operating Procedures, looking at quality control checkpoints and staff training programs. This part of the audit verifies that all processes are compliant with industry regulations and have the necessary certifications. It also looks at how well these quality systems are embedded in daily operations and how effective they are in preventing errors and maintaining service standards.
4) Financial Health and Stability
Financial health and stability assessment gives you a deeper insight into the long-term viability of the 3PL partnership. This involves reviewing financial statements, insurance coverage and liability protection, and transparency of pricing structures. It also involves understanding historical cost trends and future pricing projections — helping identify potential risks and opportunities in the relationship.
5) Risk Management and Compliance
An often overlooked part of the audit. This covers business continuity plans, physical and data security, and environmental compliance — including workplace safety and labour practices to ensure regulatory compliance and operational resilience.
And if the audit confirms the relationship can’t be fixed? We’ll tell you honestly — and we can help you through the RFP process from there. But that should be the last option, not the first.
How It Works
Pre-audit planning
Objectives are defined and documentation requirements are set.
On-site assessment
Facility inspections, process observations and stakeholder interviews are conducted.
Data analysis
Performance metrics are compared to industry benchmarks and operational inefficiencies are identified.
Reporting
Findings are documented and recommendations for improvement are provided, with implementation timelines and follow-up audit schedules.
Who it’s for
This is for supply chain and logistics leaders who are responsible for 3PL performance and suspect they’re not getting the value they contracted for.
Typical clients include Supply Chain Directors and Managers, Logistics and Operations Managers, DC and Warehouse Managers, and Procurement leaders reviewing existing 3PL contracts.
A good audit gives you a full picture of your 3PL’s capabilities and performance, identifies areas to improve, and helps mitigate risk. Regular audits keep service quality high and strengthen the logistics relationship over time.
If you’re not sure whether an audit is the right step, honestly, a conversation is enough to work that out. Every situation is a bit different — some clients come to us knowing exactly what’s wrong, others just have a feeling something’s off but can’t put their finger on it. Either way, we can usually tell pretty quickly whether an audit makes sense or whether there’s a simpler path forward.
Who it’s for
This is for supply chain and logistics leaders who are responsible for 3PL performance and suspect they’re not getting the value they contracted for.
Typical clients include Supply Chain Directors and Managers, Logistics and Operations Managers, DC and Warehouse Managers, and Procurement leaders reviewing existing 3PL contracts.
A good audit gives you a full picture of your 3PL’s capabilities and performance, identifies areas to improve, and helps mitigate risk. Regular audits keep service quality high and strengthen the logistics relationship over time.
If you’re not sure whether an audit is the right step, honestly, a conversation is enough to work that out. Every situation is a bit different — some clients come to us knowing exactly what’s wrong, others just have a feeling something’s off but can’t put their finger on it. Either way, we can usually tell pretty quickly whether an audit makes sense or whether there’s a simpler path forward.
To Find Out More.. Book a Call
Book a short call to talk through your situation. There’s no obligation, it’s simply a conversation to understand what’s going on with your 3PL and whether an audit makes sense for you.
We’ll answer any questions you have about the process, what’s involved, and what past clients have been able to achieve.
Rob O’Byrne – CEO, Logistics Bureau
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