How to Switch 3PLs
Quick answer
Switch 3PLs in six steps: 1) read your current contract's notice, exit-fee and lien terms; 2) onboard the new 3PL fully (integrations, SKUs, test orders) before moving stock; 3) run a full physical count at the old 3PL and settle invoices so the lien doesn't hold your goods; 4) move inventory in waves, fast movers last or split, so you never stop shipping; 5) cut order routing over SKU by SKU as stock is received; 6) reconcile what left against what arrived, and file claims inside the contract deadline.
Key takeaways
- Warehouses have a lien on your goods for unpaid charges (UCC 7-209), so disputes at exit can hold your inventory.
- The IWLA standard terms let a warehouse require advance payment of accrued and future charges before goods are removed.
- The same terms set a 60-day written claim window and a nine-month limit on lawsuits.
- Notice periods differ: Tondo publishes 30 days on month-to-month terms; ShipCalm publishes 90.
- A split transfer (some stock of every SKU moves early) keeps you shipping from both sites during cutover.
What should you check in your current 3PL contract before switching?
Pull the contract and answer these before you tell anyone you're leaving:
| Term | Why it matters |
|---|---|
| Notice period | Sets your earliest exit date. Published examples: 30 days (Tondo), 90 days (ShipCalm) |
| Minimums through term end | Multi-year contracts may bill remaining minimums |
| Exit or pick-out fees | Pallet-out, carton pick, loading and admin charges |
| Lien clause | What the warehouse can hold, and for which charges |
| Data export | Whether you get order, inventory and lot history |
| Claims deadline | How long you have to claim missing stock after it ships out |
The IWLA's Standard Contract Terms, the template many warehouse agreements start from, give the warehouse a general lien on all your goods for all unpaid charges and reserve the right to require advance payment of accrued and future charges before goods are removed. UCC 7-209 is the legal basis for warehouse liens. If your contract has that language, budget for it and settle disputes before the move. Background is in the 3PL contract guide.
How do you plan the move to a new 3PL?
A timeline for a typical DTC brand. Stretch it if you have retail EDI, lot control or several channels.
| When | Step |
|---|---|
| Weeks 8–6 before | Sign new 3PL; give notice per contract; request data export |
| Weeks 6–4 | New 3PL onboarding: SKU master, integrations, packing rules (see onboarding checklist) |
| Week 4 | Test orders at the new 3PL using a small seed inbound |
| Week 3 | Full physical count at old 3PL, with you or an auditor present if possible |
| Weeks 3–1 | Transfer waves; receive and reconcile each one |
| Cutover | Route orders to the new 3PL SKU by SKU as stock goes live |
| After | Final wave, final invoice, claims for variances, close account |
Avoid moving in your peak season. If your notice period forces it, negotiate an extension or start the move earlier.
How do you move inventory between 3PLs without stopping orders?
Three ways to run the transfer:
| Method | How | Risk |
|---|---|---|
| Big bang | Everything moves at once; shipping pauses for days | Stockouts and a backlog |
| Slow movers first | Move long-tail SKUs first, top sellers last | Top sellers still depend on the old 3PL's pace |
| Split transfer | Move part of every SKU first; ship from both sites; move the rest | Two sites to manage for a short time; needs routing by location |
The split transfer is the safest for most brands. With a Shopify-style location setup, you can hold stock in two locations and let routing decide which ships each order.
For each wave:
- Get a pick-out manifest from the old 3PL: SKU, lot, quantity per carton or pallet.
- Send that as the ASN to the new 3PL.
- Reconcile shipped vs. received per SKU within days, not at the end.
What goes wrong when switching 3PLs?
- Inventory is "lost" in transit because nobody reconciled the pick-out manifest against the receiving report.
- The old 3PL slows down after notice. Agree pick-out dates and staffing in writing.
- Orders ship twice because both 3PLs' apps are still active on the same location.
- Lot data is lost, so the new 3PL can't run FEFO. Include lot and expiry on the manifest. See lot tracking and FEFO.
- The claim window closes. The IWLA template requires written claims within 60 days of delivery or notice of loss, and suits within nine months. File as soon as a variance is confirmed.
- Inventory is held over a disputed invoice. Settle or escrow it before the last wave.
- Returns keep arriving at the old address. Update return labels and portals on day one.
Why do brands switch 3PLs?
Common triggers brands describe:
- Repeated late shipments or mispicks with no improvement after escalation.
- Inventory counts that never reconcile.
- Rate increases or new fees that change the economics.
- Outgrowing a single node when customers are spread across the country.
- Adding a channel (retail EDI, TikTok Shop, Amazon FBA prep) the current 3PL can't support.
- Product changes such as lot-controlled or hazmat SKUs.
Before switching, try once to fix it: put the problems in writing against the SLA, and give the 3PL a deadline. If the fix is cheaper than a move, that's the better outcome. If you're switching because of count problems, read 3PL inventory discrepancies first, since some causes travel with you.
What should you ask the new 3PL about the transfer?
- Will you receive transfer freight on a priority schedule, and how fast will it be available to sell?
- Can you receive from a pick-out manifest as the ASN, including lot and expiry?
- Can we run both sites in parallel for a couple of weeks?
- What do you charge to receive transferred, mixed-SKU pallets?
- Will you help coordinate the pick-up from the old warehouse?
- Can you import historical data (lot history, return reasons) for continuity?
Frequently asked questions
How do I leave a 3PL?
Give written notice as the contract requires, settle outstanding invoices, run a final count, and arrange pick-out of your inventory to the new warehouse.
Can my old 3PL keep my inventory?
It can hold goods for unpaid charges under its warehouse lien. Settle or escrow disputed invoices before the final pick-out.
How long does it take to switch 3PLs?
Plan for about six to eight weeks from signing the new 3PL to closing the old account, longer if your notice period is 90 days or you have retail channels.
What does it cost to move inventory to a new 3PL?
Expect pick-out fees at the old 3PL, freight between sites and receiving fees at the new one. Ask both 3PLs for these in writing.
Should I switch 3PLs during peak season?
Avoid it. If you must, use a split transfer so you can ship from both sites through the move.