Case study: 3PL, Warehousing & Delivery
How We Lowered Costs and Grew Demand 89% in 88 Days for a Third-Party Logistics Company
A 3PL was one of too many in its region, squeezed by the cost of labor and services. We partnered it with Palletmore's network of packaging and supply-chain vendors, and demand for its warehousing and delivery grew 89% in 88 days.
The Problem
Too many 3PLs, too close together. Every warehouse in the region offered much the same space, the same trucks and the same promises, so buyers shopped on price.
At the same time, the cost of labor and services kept climbing. There was no margin left to win on price, and competing harder with the same offer only made it worse.
- Too many 3PLs in the same region
- Rising labor and service costs
- An offer that looked like everyone else's
- No room left to compete on price
What We Built
Access to Palletmore's Vendor Network
Palletmore works with a long list of packaging and supply-chain vendors. We partnered the 3PL with them, so it no longer competed alone.
- Packaging and supply-chain vendors in one network
- The 3PL no longer competing alone
Shared Customers, Lower Costs
Every company in the partnership served the same customers. Sharing them brought each partner's costs down, the 3PL's included.
- The same customers served across all partners
- Lower costs for the 3PL
An Offer Worth Switching For
Lower costs meant a better offer: a sharper price, fast delivery and an easier way to work together. Packaging businesses now had a reason to store and ship through the 3PL, and end customers had a reason to choose it.
- Lower cost
- Fast delivery
- Ease of use
The Results
89% more demand in 88 days
Demand for warehousing and delivery grew 89% in 88 days.
Demand from both sides
Packaging businesses came to store and ship. End customers came for the speed and the ease. The same partnerships fed both.
Key Takeaway
When every 3PL sells the same space and the same trucks, the cheapest one doesn't win. The best-connected one does. Don't compete on the warehouse. Compete on the network behind it.