3PL Value Delivery Evaluation in Fitness – A $20M fitness equipment manufacturer was unhappy with increasing logistics costs and asked for help to evaluate outsource fulfillment services. The 3PL was operating 2 DCs on the East and West Coasts.

Our evaluation found the 3PL’s service level was satisfactory. However, logistics costs analysis identified the client’s inventory deployment practices was a significant logistics cost driver. The client approved a deeper dive, which revealed an imbalance in stocking strategies that increased transportation costs.

The client implemented our recommended inventory strategy with the shipment routing guide, and immediately repositioned some key SKUs, which resulted in a 20% reduction in shipping costs. The results proved the utility of our approach to looking holistically at the business and putting effort into finding root causes.