$367K saved on $1.55M of spend with a new 3PL partner

A fast growing nutraceutical company located in Texas, shipping direct to customers through a third party fulfillment partner.

Nutraceuticals, where growth outpaces the fulfillment setup that was chosen when the company was smaller.

After spending several hours with the different stakeholders in the company we were able to determine what our client had and what they needed. A comprehensive review of the operation covered inventory, systems, automation, transportation, reporting, KPIs, flexibility, material handling equipment, distribution locations, and growth potential.

Not all 3PLs are the same. Many provide solutions that accommodate their current customers at each location and delay significant capital investment on new technology, systems and equipment. We matched this client with partners that could provide the needs and some of the wants. In evaluating RFP responses we did not just look at cost, but at the technology, systems and material handling equipment that would enhance the customer experience, reduce cost and speed fulfillment. A pick and pack rate might be a little higher, while the productivity yields a lower cost.

Rather than leave transportation bundled inside the fulfillment contract, where the client cannot see or control it, we moved the agreement under the client's own name.