---
title: 25.8% Cut From a Beauty Brand's Outbound Parcel | Trans-Solutions
description: A health and beauty brand's 3PL bundled fulfillment with transportation. Unbundling it, and adding a niche carrier, cut outbound parcel cost by 25.8%.
image: https://trans-solutions.com/hubfs/3ac65ed58c892fe334d9567be880f7f3aa3ba1a5.webp
---

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# 25.8% cut from outbound parcel for a health and beauty brand

Carrier Sourcing & RFP Parcel Consumer & retail brands

Carriers:

USPS DHL eCommerce Amazon

![3PL transportation cost reduction case study](https://trans-solutions.com/hubfs/3ac65ed58c892fe334d9567be880f7f3aa3ba1a5.webp)

CONTENTS

- [Who](https://trans-solutions.com/case-studies-health-beauty-3pl-transportation-savings#who)
- [Problem](https://trans-solutions.com/case-studies-health-beauty-3pl-transportation-savings#problem)
- [What we did](https://trans-solutions.com/case-studies-health-beauty-3pl-transportation-savings#what-we-did)
- [Results](https://trans-solutions.com/case-studies-health-beauty-3pl-transportation-savings#results)

WHO

## Business model

A growing beauty and wellness brand that outsources fulfillment to a third party provider. The 3PL also handled outbound transportation to the end customer, and was supposed to be managing cost through rate shopping.

## Industry

Health, beauty and wellness, sold direct to consumer.

PROBLEM

## What they felt

They knew there was an opportunity to improve outbound transportation cost, but felt stuck, because the 3PL tied warehouse fulfillment to transportation when it quoted rates. An upcoming renewal gave them the chance to challenge that, and they needed support positioning the negotiation so the supply chain stayed protected while the savings landed.

## What we found

There was room to compress cost, but new carriers were needed to create leverage. Most of the current providers did not want to cannibalize their own business, so we brought in a niche provider that could cut cost without requiring a complete overhaul. A change of 3PL was not possible given the timeline and the client's workload. 

The 3PL was not happy about losing the transportation business, and wanted to claw back revenue with a per package charge.

WHAT WE DID

## Prep and analysis

We identified which carriers fit the client's shipping profile and built toward coverage, reliability and flexibility. We analyzed over 150,000 shipments and 250,000 line-item data points to match the customer footprint to the right last mile providers, eliminating unnecessary surcharges and capping fuel surcharge exposure. We also prepared the client for the conversations with the 3PL, so the fulfillment and order processing relationship was not put at risk.

## Execution and coaching

We role-played the scenarios with the client and prepared them for the objection handling needed to bring the 3PL along. We negotiated directly with the new transportation provider to fit the right packages into their network at aggressive cost, leaving the remainder with the national provider that specializes in heavier packages and expedited service.

## We kept it clean afterwards

Trans-Solutions runs a monthly audit of packages to make sure the carriers are getting the right volumes and the client is not paying for 3PL non-compliance. We built a spend dashboard at the client's request, to track compliance and surface further opportunity.

RESULTS

## What they got

**25.8% cut from outbound parcel, high six figures a year**

Outbound parcel cost fell 25.8%, high six figures in annual savings, and the relationship with the 3PL was maintained. A new parcel carrier increased the competitiveness of all pricing, with the right providers matched to the right freight profiles. The per package charge was minimized without taking fulfillment out to bid, and accessorial exposure was addressed to give cost certainty that matches what end customers expect.

Further negotiation is possible, but the focus now is holding the current landscape without cost leaking to the wrong carriers.

## How long it took

Roughly four months, through peak season, the toughest negotiating period of the year, with implementation in early January.

## How we were paid

Gainshare, with a total compensation cap.

Related case studies

- [![nutraceutical company ](https://trans-solutions.com/hubfs/nutraceutrical%20company-1.webp) $367K Saved on $1.55M of Spend With a New 3PL →](https://trans-solutions.com/case-studies-nutraceutical-3pl-partner-selection)
- [![successful electronics company](https://trans-solutions.com/hubfs/successful%20electronics%20company-1.webp) $1M+ Saved Choosing a Fulfillment Partner →](https://trans-solutions.com/case-studies-electronics-fulfillment-partner-selection)

Related services

- [Parcel Rate Negotiation →](https://trans-solutions.com/services-parcel-rate-negotiation)
- [Carrier Sourcing & RFP →](https://trans-solutions.com/services-carrier-sourcing-rfp)

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