E-commerce · Logistics

3PL contract economics and transferability

Published · Reviewed by The Diligence Standard Team · Updated

A 3PL relationship combines pricing, minimums, service levels, data, inventory control and termination rights that may change under new ownership.

Records to reconcile

  • Executed agreement and rate cards
  • Minimum, storage and exception charges
  • Assignment, renewal, termination and lien terms

Warning signal

The seller’s rates are informal, expired or unavailable to the buyer.

Transaction impact

Cost, continuity and access to inventory can change at closing.

Response

Obtain written transition terms and model the buyer’s actual post-close rate structure.