3PL Growth Strategy | Case Study 2

3PL Start-Up Growth Strategy – A small $10M VAWD 3PL with 2 warehouses in SoCal had an ambitious revenue goal to grow by 3X in 3 years. It sought help to figure out how to achieve it. The 3PL originally operated as the logistics department of the parent company but started to offer 3PL VAWD services to a handful of small apparel companies. Very small but highly profitable, it had developed solid and marketable VAWD capabilities and made smart choices in IT systems selection.

Our approach started with baseline evaluation, including on-site visits, management interviews, and data collection. Our consultants dug into the details of process, people, and technology, customers, and financial performance for comparison to industry practices and market dynamics. The 3PL had solid capabilities for wholesale distribution to mass merchants but needed help with B2C operations and continuous improvement to maintain quality during rapid growth. 3PLR delivered a SWOT Analysis focusing on gaps and actions, and a growth roadmap.

The client followed recommendations to establish a sales organization with a competitive compensation scheme and advice on 3PL service pricing. It hired its first dedicated salesperson. The client also accepted advice to add DTM 3PL services via acquisition and to establish a distribution presence in the Southeast.  Less than 2 years later, the company opened a 760KSF DC in Savannah, faster than suggested, and is closing in on its revenue goal.