Patang–3PL Partner Evaluation & Contract Negotiation Strategy – Founder’s Office Assignment

Goal: 
Evaluate Shiprocket as a 3PL partner for Patang, a fast-growing clean-label snacks brand, to scale from ~1,000 to 5,000 monthly orders without compromising margins, speed, or service quality.

Tools & Frameworks Used:
Unit economics modeling, fulfillment cost benchmarking, SLA analysis, contract risk review, vendor negotiation frameworks, festive spike scenario planning.

What I Did:
Built the per-order and monthly fulfillment cost model at 2k and 5k orders.

Identified key financial, operational, and contractual risks.

Designed the renegotiation framework with must-win vs good-to-have terms.

Created a 15-minute vendor negotiation call script.

Delivered the final recommendation to renegotiate before onboarding.

Challenges & Learnings:
Flat per-order pricing kills scale advantages without volume tiers.

Weak SLA penalties create major CX and reputation risk.

Forecast variance clauses can severely hurt festive season operations.

Strong negotiation is about protecting downside without burning the relationship.

Result / Outcome:
Recommended renegotiation, not immediate sign-off.

Proposed: 6-month rate lock; Tiered volume discounts; SLA penalties of Rs. 50+ per breach; Forecast tolerance up to ±30%; Exit clause reduced to 45 days

Identified 10–15% annual cost savings potential with better commercial protection.

Confidentiality Note:
This project was created as part of a Founder’s Office hiring assignment. Brand and commercial details are anonymized and used only for case representation.

16 Aug 2025

Keywords
Founder’s Office
Operations Strategy
D2C Ops
Vendor Management
3PL
Negotiation
Unit Economics

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