RIFRUF & 3PL-Evate: A Pawtnership Story

Introduction to RIFRUF:

Dedicated to ensuring that dogs step out in style, RIFRUF not only represents canine fashion, but a rich blend of modern design, sneaker culture, and a touch of nostalgia. Their commitment to quality and style led them to be awarded the 2022 Pet Innovation Award for Best Dog Accessory Product of the Year. What sets RIFRUF apart is their uncompromising attention to fit and quality. By tailoring their shoes to fit dog paws perfectly, they bring a touch of human sneaker philosophy into the canine world. Their commitment to using vegan, cruelty-free materials, and their engagement in both DTC and B2B sales across North America, sets them apart in their industry. Yet, like many passionate innovators, they faced challenges in areas outside their expertise; in this case, the complicated world of 3PL management.

The Growing Concern:

While RIFRUF’s passion and drive set them apart in product development, this laser-focused dedication meant that areas like optimizing their 3PL spend were being overlooked. While they suspected that there were opportunities for savings, they felt overwhelmed by the complexity of 3PL invoices, and without a benchmark, they were unsure if their rate tables were competitively set. These concerns had tangible repercussions, as unnoticed overcharges and overpaying on fulfillment were eating into their margins. The need for expert intervention was clear, and their search led them to discover 3PL-Evate.

Solutions Tailored for RIFRUF:

1) Fulfillment Invoice Audit:

3PL-Evate stepped in with its proven approach. First, we worked closely with RIFRUF's management team to develop a deep understanding of their product offering. Covering everything from the dimensions and weights of each product to its fragility, foldability, stickability and more. From there, we met with RIFRUF's 3PL to map out the potential selection of boxes and poly-mailers available for use on RIFRUF's orders.

Inputting these details into our state-of-the-art AI technology, we simulated a look-back period of RIFRUF's fulfillments and compared these optimized results to invoices received from the 3PL, and identified a series of overcharges. Not stopping at just identification, we took these findings back to RIFRUF's 3PL to ensure corrective actions were made and funds were appropriately reimbursed to RIFRUF.

2) Rate Table Negotiation:

But our engagement didn't end there. Through our discussions with RIFRUF's management team we learned that they had not renegotiated their rate tables since signing up with their 3PL almost two years earlier. We took a deep dive into industry data, comparing rate tables of businesses with similar fulfillment volumes, growth rates, and package/product attributes. This analysis revealed that several areas in RIFRUF’s rate tables were no longer market-competitive. With this comprehensive analysis in our back pocket, we knew exactly what levers were available to be pulled during the negotiation with the 3PL.

Transformative Outcomes:

The outcomes of this engagement were immediate and ongoing. RIFRUF not only recouped overcharges totaling 9.1% of their total fulfillment spend during the period we reviewed, but also fortified their margins prospectively with renegotiated rate tables yielding savings as high as 14.1% on some on their most commonly used weight/zone combinations.

RIFRUF continues to enlist 3PL-Evate for ongoing monitoring and consultations.

Testimonial:

"3PL-Evate’s dedication and expertise have been pivotal... They not only diagnosed the challenges we faced but strategically negotiated to alleviate them, cementing our confidence in our 3PL relationship... Their meticulous analysis, superior negotiation tactics, and deep understanding of the 3PL space have been a game-changer for us. We wholeheartedly endorse 3PL-Evate to any ecommerce brands seeking clarity and optimization in third-party fulfillment dynamics."

Peter Liu

Co-Founder