Our 3PL/3PF Procurement Process:
We assess your current contract and/or 3PF wish list
We determine if your current provider aligns with your logistics needs, if you’re overspending according to our benchmarks, or identify what you should be looking for in a partner according to your shipping data
We negotiate directly with the incumbent or evaluate the market via RFP
Shipware negotiates on your behalf, ensuring best-in-class contract terms that meet your logistics needs and objectives at market-best pricing
We ensure your provider is held accountable
By working Service Level Agreements (SLAs) into your contract, we hold your 3PL or 3PF accountable to measurable service and performance standards. This way, you can ensure operational efficiency in your supply chain and logistics processes
Why should Shipware help me procure Third Party Warehousing & Fulfillment?
Across our assessments, we’ve found that 4 in 5 merchants overpay for 3PL and fulfillment services. Contracts are inherently complex. Terms that offer financial relief for service failures are non-existent. Maybe your provider offers you reduced fees for select services, only to make significant margins on small parcel & LTL freight. Comprehensive logistics consulting from Shipware will shed light on these logistics problems for you.
Many growing companies engage in 3PF or 3PL procurement without knowing contract negotiation best practices. And, how would they? Competitors or providers don’t typically share that kind of information. That’s why most fail to incorporate Service Level Agreements that benchmark their provider’s performance against Key Performance Indicators. Our 3PL consulting service provides the leverage needed to develop and implement enforceable SLAs.
For many businesses, 3PF is necessary to compete with the Amazon Effect, meet customer expectations – simply, to compete. Choosing the right 3PF or 3PL logistics solutions for your business is more than finding the lowest cost provider. What technology do they use or offer? Is their staff highly trained (for example, if you sell frozen foods, are they qualified in food safety)? What is their infrastructure like? Shipware works with you to make sure you get it right.
Businesses that partner with Shipware average 21.5% savings on annual shipping costs
Whether they spend $100 million or fifty thousand per year on shipping, Shipware has helped businesses across all sizes and industries cut costs and spend smarter.
What we learned after working with Shipware is that the confidentiality provision in carrier pricing agreements is a well thought-out strategy to prevent shippers from understanding the rates and terms of other shippers since we can’t disclose rates. The Shipware process allowed us to better understand the discounts and concessions we were entitled to without any breach in terms with our delivery partners.
VP of Supply Chain, AutomotiveDetroit MI
We used to use a broker for our LTL shipments. In theory, it’s a good concept: benefit with deeper discounts by aggregating volume from hundreds of other shippers. However, after working with Shipware, we learned that we could avoid huge broker markups and reduce our LTL costs by forging direct relationships with the carriers. We are saving 18% with the same high-quality LTL providers we had been using previously, and as we grow, WE benefit with even higher discounts – and not the broker. We’re also using Shipware’s TMS to identify the right carriers for the right loads for better time in transit at lower costs. I’ll never use a broker again.
Dir of Transportation, Consumer ProductsCarlsbad CA
I’m not new to logistics. Been at my job nearly two decades, and I’ve worked with 4-5 parcel invoice audit companies during my career. Shipware’s audit is hands down the best. It delivers significantly greater savings week in and week out, and their spend management reports and portal are tools I actually use to improve my business.
President, AutomotiveSan Diego CA
Frequently Asked Questions
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