The Hidden Costs of Poor Delivery SLA Adherence in 3PLs: Why It Matters
A 3PL client calls at 4 PM, angry that their priority shipment is still “in transit” despite a 2 PM Service Level Agreement (SLA). The ops manager checks logs, spots the traffic delay, but it’s too late. No alert, no update, no backup plan. This scenario plays out daily across 3PL operations running on fragmented tools instead of an integrated 3PL software system.
But the real damage isn’t the missed delivery window; it’s what happens next - penalties, lost contracts, and damaged trust. When 3PL software systems fail to track and communicate in real time, clients leave and take others with them. It exposes the true cost of poor delivery SLA adherence in 3PLs and outdated 3PL transportation management software. Chronic shipment delays can also trigger detention and demurrage penalties, sometimes amounting to 15% of a shipment’s total value, adding financial strain to already fragile margins.
Source: https://www.ramco.com/blog/log....istics/hidden-costs-
