Reducing 3PL Contract Renewal Costs

A large enterprise manufacturing firm’s contract with their third-party logistics (3PL) was coming to term. Changing their 3PL would mean significant rework across processes and potential disruption of customer fulfillment. With Gartner’s support, the client was able to review their existing contract and the proposed renewal contract, and find efficiencies. This helped the client negotiate the renewal contract, which resulted in cost savings of $2.1 million.

Mission-critical priority

The client’s priority was to avoid disruptions in its operations by going out to RFP but also reduce spend with its existing 3PL.

How Gartner helped

Gartner supported the client to assess its needs based on its priority of saving costs, review its existing contract to find efficiencies, and helped develop a strategy for negotiating a renewal with its existing 3PL that resulted in significant cost savings.

Mission accomplished

With Gartner for Supply Chain, the client: 

  • Increased visibility into business needs and current level of spend required to support it.
  • Identified negotiation possibilities and prepared for contract renewal discussions.
  • Reduced contract costs while maintaining existing partner and processes.

 

Industry:
Manufacturing

Revenue:
Approx: $2 Billion

Employees:
3,200

Achieve your mission-critical priorities with Gartner for Supply Chain

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