---
title: $367K Saved on $1.55M of Spend With a New 3PL | Trans-Solutions
description: A fast-growing Texas nutraceutical company replaced a fulfillment partner that no longer fit and cut 23.7% from its logistics spend, $367,000 against $1.55M.
image: https://trans-solutions.com/hubfs/nutraceutrical%20company-1.webp
---

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

Vendor & TMS Selection Parcel Consumer & retail brands

![3PL selection case study](https://trans-solutions.com/hubfs/nutraceutrical%20company-2.webp)

CONTENTS

- [Who](https://trans-solutions.com/case-studies-nutraceutical-3pl-partner-selection#who)
- [Problem](https://trans-solutions.com/case-studies-nutraceutical-3pl-partner-selection#problem)
- [What we did](https://trans-solutions.com/case-studies-nutraceutical-3pl-partner-selection#what-we-did)
- [Results](https://trans-solutions.com/case-studies-nutraceutical-3pl-partner-selection#results)

WHO

## Business model

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

## Industry

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

PROBLEM

## What they felt

The company was discovering its current fulfillment partner was not a good fit for their business. Delivery of orders to customers was extremely inconsistent, costs were rising, warehouse flexibility not available.

## What we found

Warehousing looks like a small line item, so nobody re-bids it.

- Systems, or lack thereof
- No visibility of inventory
- Delayed and basic reporting
- Limited historical data
- Legacy material handling equipment
- Transportation rates well above market benchmarks

Since warehousing is one of your lower costs in logistics, it doesn't always yield a high dollar value of savings, and if you just look at warehousing costs you will be limiting your opportunities.

WHAT WE DID

## Prep and analysis

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. 

## Execution

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. 

## We took the transportation agreement in-house for them

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. 

RESULTS

## What they got

**$367,000 saved against $1.55M in spend, a 23.7% reduction**

The engagement saved $367,000 against $1.55M in total spend, a reduction of 23.7%.

They also got a new 3PL partner in a location that speeds ground service to customers, the transportation agreement taken in-house, and greater visibility of the operation. Good practice is to evaluate your partners yearly and put the business out to bid at least every three to five years, and they now have the baseline to do that.

## How we were paid

Fixed fee for the first three months, then contingency

Related case studies

- [![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)
- [![TMS selection case study](https://trans-solutions.com/hubfs/464b59a47e862003cba91de1ab713bbb7d07d52d.webp) A Scalable TMS Bought Under Budget →](https://trans-solutions.com/case-studies-third-party-logistics-tms-selection)

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