If you’ve ever felt like your 3PL is sprinting just to keep pace with new supply chain compliance changes—a new shipping label requirement, customs and tariff laws, or new routing guidelines—you’re not alone.
In talking with 3PL companies struggling with compliance, one described the experience as “trying to hit a moving target,” especially when retailers and carriers update their specifications almost as frequently as you revise your pick lists. From label format changes to fresh shipping documentation mandates, each new compliance rule can send shock waves through your warehouse or 3PL operation.
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Lots of shipping compliance changes, very little warning
Shipping specs often change with little warning: the barcode that was acceptable last week is suddenly out of spec this week. If your 3PL warehouse team doesn’t scramble to adopt that new format, an entire shipment may get refused, triggering a ripple effect:
- Goods bounce back
- Reverse logistics costs spike
- Extra hours spent on re-labeling and re-documenting
- Margin erosion from the rework
If you’re juggling multiple international markets, constant rework is likely draining your resources. It can feel like every other person on your team is involved in “cleanup” rather than driving new outbound revenue.
Tariffs and nearshoring
Tariffs add another layer of complexity to supply chain compliance, especially for organizations pivoting to alternate countries (or pivoting back to the US) for their sourcing. A brand might attempt nearshoring in Mexico, only to encounter new labeling or customs rules immediately after adapting to a different set of regulations.
Non-compliance with labeling regulations can have significant financial repercussions on supply chains, affecting both revenue and the bottom line. In 2024, labeling errors were the leading cause of food recalls in the United States, accounting for 45.5% of the 422 recall events recorded by the FDA. These recalls cost the food industry an estimated $1.92 billion in direct expenses, not including additional costs such as lawsuits, reputational damage, regulatory fines, and lost sales.
Trade Tariffs: A Supply Chain Leader’s Action Plan to Prepare
Amid the challenges, there is encouraging news. Many Deposco customers confirmed during a recent customer advisory board that a dynamic WMS or Distributed Order Management (DOM) can automate significant parts of supply chain compliance. Instead of pressuring staff to memorize every new retail or carrier requirement, the system absorbs and enforces changes behind the scenes—accurately from the moment a package is picked to the moment it’s shipped.
When a WMS or OMS system is integrated with flexible labeling tools, you can roll out new label formats seamlessly. This eliminates many “last-minute fire drills” that often happen on the warehouse floor.
Compliance isn’t a tech-only solution
However, strong technology alone isn’t enough to tackle supply chain compliance. Especially for 3PLs, proactive communication is key. Regular check-ins with carriers and retailers help spot an upcoming shipping compliance shift before it goes live, allowing for faster, smoother adjustments. This way, you spend far fewer hours in re-labeling mode—or worse, dealing with a mountain of returned shipments.
It all boils down to avoiding the “fire drill” approach. By addressing supply chain compliance proactively, your team can stay focused on operational excellence and revenue-driving priorities. This saves on labor and fees and enhances your customer experience—all while building a nimble operation that adapts quickly when compliance rules change yet again.
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Proactive supply chain compliance strategies
Here are three core areas that can help you stay ahead of shifting compliance demands in your 3PL supply chain:
Get your technology foundation right
- Dynamic WMS/OMS – Modern warehouse management software can automate updates for routing guides and label formats. Native label development tools and external partnerships let the software handle the heavy lifting so your warehouse team isn’t forced into manual fixes.
- Single source of truth – Decouple the data collection process from the label or packaging one. Keep SKU data, packaging guidelines, and supply chain compliance documents in one place, so changes flow consistently across all systems. That way, it’s not a fire drill to understand where to update things when changes occur.
- Flexible labeling tools – The WMS should be flexible enough with your parcel management system or third-party labeling software to maintain that central source of the truth. Having the ability to quickly swap to new label specs or meet evolving carrier requirements without a full-scale scramble on the warehouse floor will allow you to focus more on business development and growing new sources of income for the business.
Tighten up operational processes
- Ongoing documentation and training – Regularly document every new requirement—whether it’s a retailer’s updated label format or a new customs regulation—and keep a living repository of that information. Make sure all relevant teams, from warehouse staff to customer service, have ready access to these materials. Training should be continuous, not a one-time event. Each time an update goes live, a short refresher course or digital checklist helps you prevent small errors from turning into major setbacks.
- Regular cross-functional communication – It’s not enough to post new specs somewhere and hope everyone sees them. Ensure constant dialogue between Operations, Customer Service, and any Compliance Specialists. Weekly stand-ups or monthly reviews can help identify emerging issues early—like consistent shipping delays at a particular site or repeated documentation errors in a certain product line. The quicker you spot these “blind spots,” the less likely they’ll cause fines or backlog your reverse logistics.
- Measure rework costs – You can’t improve what you don’t measure. Tracking the cost of re-labeling, re-packing, or re-documenting forced compliance failures can reveal hidden drains on your bottom line. Document the extra labor hours and shipping fees incurred each time a returned shipment must be processed. Use these insights to create a clear ROI for investing in better supply chain intelligence tools and better training. Not only will you save money, but you’ll also see a boost in team morale when staff can focus on more meaningful tasks than perpetual “fire drills.”
Employ collaborative partnerships
- Early-warning systems with carriers – Retailers and carriers often issue compliance updates with a tight turnaround window. Rather than waiting for formal announcements—or worse, learning about new requirements from a returned shipment—set up regular check-ins or communication channels with your primary carriers. This can be a monthly call or a standing email thread with key account managers.
- Industry events and forums – Major retailers, trade associations, and logistics groups frequently share updates on upcoming policy shifts, emerging shipping guidelines, and best practices at conferences or in online communities. By sending team members to these events or participating in virtual sessions, you gain real-time insight into new trends, potential partner requirements, and looming regulatory changes. It’s also a chance to swap lessons learned with other 3PLs and brands—often saving you from costly trial-and-error scenarios down the road.
- International insight – If you’re branching into new countries, you’ll need to manage not only multiple languages but also a patchwork of local rules around cross-border trade, including: labeling, customs, and other trade regulations. Proactive relationships with foreign distributors, customs brokers, or in-country compliance experts can help you sidestep fines and red tape. For instance, hiring a reputable customs brokerage in Mexico or Europe can keep you informed about changes to cross-border paperwork or tariff codes before they bite into your schedule.
Get help with your compliance strategy
You can transform supply chain compliance from an ongoing headache into a competitive advantage by focusing on supply chain solutions that automate updates, refining your processes for seamless adjustments, and nurturing strong relationships with carriers and retailers. Reduced rework, fewer returned shipments, and happier partners translate into more efficient operations—and a logistics environment that’s ready for whatever the next “moving target” might bring.