Relationships between shippers and 3PLs are evolving from purely transactional to more strategic. As these partnerships mature, the way both parties assess the effectiveness of their collaboration is also changing. Regular evaluations not only help track performance but also reinforce shared goals, uncover opportunities for improvement and strengthen mutual alignment.
Contracts serve as the foundation for many of these relationships, outlining expectations, aligning objectives and defining how success will be measured. SLAs remain the most widely used contractual tool, with 90% of shippers and 78% of 3PLs saying they use them. 3PLs (72%) list continuous improvement targets as the second most common contract element they leverage, versus 52% of shippers, highlighting the growing role of 3PLs in driving innovation.
Other commonly used contractual mechanisms include guaranteed volume or capacity, flexible termination clauses and options for contract extensions.
More than half of shippers say they do not automatically rebid at the end of a contract. This suggests a growing preference for long-term relationships when service expectations are met. In fact, 85% of shippers and 94% of 3PLs say their longest-standing partnership has lasted more than five years, which is an indicator of stability and strategic alignment.
Key performance indicators (KPIs) continue to be critical in assessing short-term operational results and long-term strategic fit. Among shipper respondents, the top KPIs used in partnership evaluations are on-time delivery and cost — both essential to maintaining efficient supply chains.
When 3PLs choose to end a partnership, the most common reason is a decline in profitability, according to 56% of 3PL respondents. Other reasons include organizational changes, services being brought in-house and misaligned strategies.