$550K Saved Through a 3PL Switch

The client's brands were growing, and the team wanted to know whether its warehousing arrangement was still the best deal available. With a lean operations team, there was little room to run a full RFP alongside day-to-day work.

The network was also changing shape. A closed western warehouse had concentrated about 85% of shipments in one Midwest location, which lengthened average shipping zones and raised cost, particularly to western customers. D2C made up about 73.5% of shipments and clustered in zones four and five. B2B made up the other 26.5%, and 15.7% of shipments went to the costly zone seven.

Our Approach

Izba ran the 3PL RFP. We defined the requirements, invited qualified providers, and compared their proposals side by side so the client could choose with confidence. The client then moved to the provider with the stronger offer.

A follow-on RFP runs from October to December 2026, with proposals targeted for early December. Izba loaded the client's shipment profile into its own RFP platform, Slotted, and validated it before any carrier was contacted: about 22 inbound pallets a day, roughly 314,000 orders a year, SKU volumes, shipping zones, and destinations. The zone analysis showed about 30% of volume going to the West Coast, and potential West Coast and Northeast nodes could shorten zones and cut cost. The RFP also tests combined and separate B2B and D2C fulfillment, and whether same-day parcels for the same recipient can be combined. The aim is to test the market and strengthen the negotiating position, and the client changes providers only if the case is clear.

The Outcome

• About $550K in expected savings from the move to a 3PL warehouse.
• A clear basis for the decision, with every proposal compared on the same terms.
• A repeatable RFP method. The same approach now supports a follow-on fulfillment RFP for the same client family.
• A second savings case. The team estimates $150K to $250K a year from the follow-on RFP, with possible upside to $500K.