Offboarding a 3PL client requires a structured approach to protect your warehouse from unpaid fees and inventory disputes. This article provides a guideline on the steps for offboarding a customer and how to use ShipHero tools to streamline the process.
Table of Contents
- Formal Notice and Timeline
- Inventory Reconciliation and Audit
- Financial Settlement
- Physical Removal
- Data and Administrative Handover
Formal Notice and Timeline
Establish specific milestone dates immediately upon contract termination to manage expectations and operational flow.
| Key Dates | Description | Account Action |
| Final Shipping Date | The last day the warehouse will pick, pack, and ship outbound orders. |
Before cut off date: Change store settings to prevent new orders from importing. On cut off date: Use the "Hide orders from App" option on the 3PL customer page to prevent unfulfilled orders from showing in picking and packing flows. |
| Final Receiving Date | The date the warehouse stops accepting inbound shipments (typically 15–30 days before final exit). |
Notify your receiving team of the client’s "No-Accept" date. Any parcels arriving after this date should be Refused at Dock. For goods already in transit, establish a "Cross-Dock" fee. Keep them on the floor near shipping docks to avoid double-handling labor. |
| Account Access Revocation | The date the client's user access to the WMS is disabled. |
Remove client access while retaining reporting: Deactivate users in the 3PL Client account. Ref: Creating and Managing Users To disconnect completely, go to the 3PL customer page and click the delete button for all warehouses associated with the client. |
Inventory Reconciliation and Audit
To prevent claims of lost goods, the warehouse must perform a final audit of all remaining SKUs.
| Process | Description | References |
| The Final Count | Conduct a physical wall-to-wall cycle count of all remaining inventory. | Cycle Counting Definition & How-To |
| Discrepancy Report | Compare the physical count against the WMS records. |
It is recommended to have the client sign off on the final inventory count before any stock is loaded onto outbound transportation to prevent future liability.
Financial Settlement
Ensure all financial obligations are met before the physical inventory leaves the facility. Ref: 3PL Billing Overview
- Outstanding Balance Review: Verify that all storage, labor, and shipping invoices are paid in full.
- Removal Fees: Apply contracted per-pallet or per-man-hour labor fees for staging the outbound move.
- Post-Exit Buffer: Consider retaining a deposit for trailing charges, such as carrier address corrections or late returns.
Physical Removal
Maintaining strict documentation during the physical removal of goods is essential. Use these options to stage inventory while maintaining a paper trail of all physical moves.
NOTE: For accounts with multiple warehouses, you must remove inventory from each warehouse that has stock on hand.
- After the final shipping date, consolidate inventory from pickable locations using transfer options in the ShipHero Mobile app. Ref: Transfer Inventory with ShipHero Mobile
- To pick and pack pickable inventory for removal, use the CSV Order Upload. Export a filtered report from the Item Location page and use that data in the upload template.
- Use the Wholesale Order process for overstock and palletized inventory in non-pickable locations.
IMPORTANT: Open orders with allocated inventory will prevent teams from picking removal orders. Canceling orders in ShipHero may trigger cancellations in the client's eCommerce store; coordinate this carefully.
Key Removal Reminders
- Staging: Organize pallets by SKU and provide a detailed Packing List for every outbound vehicle.
- Transportation: Confirm responsibility for freight booking. Require Bills of Lading (BOLs) at least 24 hours in advance.
- Documentation: Capture timestamped photos of pallets during loading to confirm the condition of goods upon departure.
Data and Administrative Handover
Clean up digital connections to prevent synchronization errors and unfulfilled order imports.
- Open Orders: Export pending orders to a CSV or Excel format for the client.
- Delete Product Locations: Once inventory is removed, go to the Item Locations report, filter by client and warehouse, and bulk delete empty locations.
- Returns Management: Establish a forwarding period (typically 30 days) and decide if new arrivals will be returned to sender or forwarded.
- Disconnect Stores: Disconnect sales channels such as Shopify or Amazon.