What should I ask about a 3PL’s warehouse management system before taking over?

The warehouse system is the nervous system of a 3PL, and clients depend on it for orders, inventory and reports. Start with ownership. Find out whether the company licenses the software or runs a custom build, how transfer to a new owner is handled and what happens if the vendor changes terms. Ask for the renewal date and the fees. Ask what the vendor charges for extra users.

Then look at connections. Many clients send orders and receive stock updates through links between their systems and the warehouse system. Ask which clients rely on those links, who built them and what happens when something breaks. Ask about reports clients receive, since losing a report can lose a client.

Finally, check people and performance. Who administers the system, and are they staying? How is data backed up, and has the system gone down in the past? Ask for logs of outages and support tickets. Request a live demonstration and see how staff use it on the floor. If the system is old or heavily customised, ask what a future upgrade would involve. Ask what is stored in spreadsheets outside the system. Your lawyer can review the licence terms and your advisers can estimate transition work.

Key takeaways

• Confirm who owns or licenses the software and whether that moves to you.
• List client connections and reports that depend on it.
• Identify the staff who understand the setup, and whether they are staying.