Wholesale
How Lincmark reduced pick costs by 80% after switching 3PL
80%
reduction in first pick costs
20%
drop in shipping prices
About
For Lincmark, an importer and wholesaler of office products to the UK and continental Europe, fulfilment has always been outsourced, but after 30 years in business, its order profile had changed. Approximately 95% of its orders were now parcels, while its long-standing 3PL partner was increasingly geared towards pallets. The biggest issue, however, was cost. Lincmark was paying around £7.50 to pick a single box, so it began looking for a provider better suited to its parcel-heavy operation. After speaking to fulfilment.com, Lincmark was introduced to three potential providers, and after choosing the strongest fit, they reduced pick costs to around £1.50 per box (an 80% reduction) and delivery costs by an estimated 20%.
Industry
Wholesale
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“We were paying around £7.50 to pick a box, and now we’re paying about £1.50, so there’s been a massive difference in cost.”
Paul Matthews
,
Founder
Highlights
First pick price reduced by 80%, from £7.50 to £1.50
20% estimated saving on delivery costs
Three suitable providers shortlisted through fulfilment.com
5/5 for finding the right 3PL, support and overall experience
100% would use fulfilment.com again
What happens when order profile changes
Lincmark imports office products from international manufacturers and supplies them to trade customers and resellers.
The business as always outsourced its 3PL warehousing, giving the team more time to focus on sales and marketing while also benefiting from its warehouse partner’s carrier rates. But the operation had evolved.
The previous warehouse had traditionally handled a significant volume of pallet business. As Lincmark shifted towards parcels, its pricing and setup became less suited to the company’s needs.
Searching for a more suitable 3PL
Lincmark had already searched independently and spoken to another storage provider, but it was looking for a warehouse with a stronger focus on parcel picking.
It found fulfilment.com through a social media advert. An account manager got in touch to understand the requirements before putting forward three potential providers. The shortlist quickly narrowed.
One was too far away. Another didn't look right on price. The third stood out as the strongest option and was particularly proactive.
“[fulfilment.com] gave us a choice of three, and one of them stood out as the best fit for us.”
Cutting pick costs dramatically
The switch to a new 3PL delivered a significant reduction in one of Lincmark’s biggest fulfilment costs. The new provider charges around £1.50 to pick a box, compared with around £7.50 previously; an 80% reduction in the cost of each pick.
Lincmark also estimates that it has cut its delivery costs by around 20%, and for a business sending the vast majority of its orders as parcels, the impact is substantial.
“Cost was 100% the main thing. Then it was location and finding someone established with a good reputation.”
Paul Matthews
,
Founder
Achieving more than just a lower price
The cost saving was the main reason for switching, but the new operation has also improved the day-to-day experience.
Parcels are being processed quickly, while the warehouse is helping Lincmark set up integrations and systems. Pallet orders are less efficient than they were previously, but overall the operation works better for the business.
“We’re very happy with them. The parcels are going out quickly and they’re helping us get the systems set up.”
Why comparing 3PL providers is crucial
For Paul, the experience reinforced the importance of looking beyond the first warehouse that seems suitable. Every business has different products, order volumes and fulfilment requirements, so what works for one company, probably won't work for another.
For Lincmark, having its requirements matched against several 3PL providers made it easier to compare the options and identify the strongest fit.
“Businesses are all different. What works for one business might not work for another, so it’s worth shopping around.”
An 80% saving that compounds
For Lincmark, it came down to finding a warehouse that suited the way the business operates now. The result is a better fit, lower fulfilment costs and a setup that makes more sense for the business.
Reducing the cost of a pick from £7.50 to £1.50, plus an estimated 20% saving on deliveries, has made a measurable difference to margins. Additionally, with a warehouse operation better suited to its parcel-heavy model, Lincmark now has a stronger foundation for the next stage of the business.
“The whole fulfilment.com process was excellent. The responses were very speedy, there was good follow-up, and it was smooth from start to finish.”
Paul Matthews
,
Founder
How Lincmark rated fulfilment.com
Lincmark rated fulfilment.com search, support and overall experience 5/5. Paul also said he would 100% use fulfilment.com again, and would start there if he needed to find another 3PL provider.
How we can help
Lincmark's fulfilment costs changed the moment its order profile did, and finding the right warehouse meant comparing options rather than settling for the first one that looked suitable.
That's exactly what we do for growing brands: share your requirements once, and we'll match you against the providers actually suited to your volumes, product mix and delivery profile, not just whoever's available. So, if your fulfilment costs no longer reflect how your business actually operates, get in touch and we'll help you find a 3PL that does.
