Should I Be Sharing Our Actual Data With 3PLs During the RFP? How Much Detail is Appropriate?

You are preparing your RFP and building your product and operation spreadsheet. You want providers to understand what you need. So you include: - Exact monthly order volume - Revenue per order - Gross margins - Customer acquisition cost - Supplier names - Exact fulfillment costs you are currently paying - Growth projections for next 5 years - Strategic expansion plans (new countries, new channels) But then you pause. Is this too much? What if one of these providers is talking to your competitor? What if they use your data to undercut you in pricing? What if they share your margins with their other clients? The tension is real: **Providers need enough data to quote accurately. But sharing everything gives away competitive information you may not want public.** The right approach is not "share everything" or "share nothing." The right approach is **phased disclosure** — share what providers need to quote, protect what is strategically sensitive, and use NDAs strategically. This is the guide to deciding what data to share with 3PLs during RFP evaluation and how to protect your business while getting accurate quotes. ## Why Data Sharing Matters ### The Cost of Sharing Too Little If you are vague about your operation, providers cannot quote accurately. **Example: Vague RFP** "We ship about 5,000 orders per month with various products. Some fragile, some not. Mix of DTC and wholesale. Growing but not sure how fast." **Provider quote:** $6.50 CPO (broad range, safe estimate) But your actual operation: - 6,500 orders/month, not 5,000 - 60% fragile (much more than "some") - 70% DTC, 30% wholesale (not balanced mix) - 40% growth (not "not sure") **Real cost at accurate assessment:** $8.50 CPO Six months in, provider sends you an invoice that is 30% higher than quote. You are shocked. Provider says "your operation was more complex than represented." ### The Cost of Sharing Too Much If you share everything, you expose strategic information that competitors or other 3PLs can use against you. **Example: Oversharing** You share in your RFP: - Monthly revenue: $500K - Gross margin: 65% - Current fulfillment cost: $3.50 CPO (well below market) - You are launching TikTok channel next quarter - Key supplier is in Vietnam (vulnerable to tariff changes) - Customer acquisition cost: $35 A competing DTC brand also in the market sees this (provider shared, or the 3PL was careless). They now know: - Your unit economics and margins - Your growth strategy - Your supply chain vulnerabilities - That you are overpaying for some services This information is valuable to your competitors. ### The Right Balance Share enough detail that providers can quote accurately. Protect information that is strategically sensitive. **Essential to share:** Product specs, volume projections, channel mix, operational requirements **Nice to share (helps providers understand):** Current fulfillment cost, growth rate, complexity factors **Sensitive to share:** Revenue, margins, supplier names, strategic plans, customer list, exact pricing for other services ## Phased Disclosure: Share More Data With Finalists The smartest approach is **phased disclosure**. Share less data broadly, more data with finalists. ### Stage 1: Initial Research and Screening (Broad Pool: 15-30 providers) **What to share:** Minimal details - Location/geography requirements - Core capabilities needed (e.g., "must have cold storage") - Volume range (e.g., "3,000-5,000 orders/month") - Channel type (DTC, wholesale, marketplace) - Example products (general category, not specific products) **What NOT to share:** - Exact revenue - Current fulfillment costs - Margins or unit economics - Customer data - Strategic plans **Why this approach:** You are screening for viability. You do not need to share sensitive data yet. Providers are evaluating fit, not quoting precisely. **Example screening inquiry:** "We are a growing DTC beauty brand shipping 4,000-5,000 orders/month. We need a 3PL with climate-controlled storage for skincare products. Do you have capacity and capability for our volume and requirements?" ### Stage 2: RFP to Qualified Providers (Qualified Pool: 6-8 providers) **What to share:** Detailed operational data, but still protect sensitive information **Share:** - Product specifications (SKU count, dimensions, weights, fragility, storage needs) - Order volume by month (actual historical, not just "5,000") - Order characteristics (average items per order, customization requirements, kitting) - Channel breakdown (% DTC, % wholesale, % marketplace, etc.) - Shipping requirements (speed, carriers, zones) - SLA expectations (accuracy, speed, returns handling) - Growth projections (next 12 months and next 24 months) - Complexity factors (what makes your operation non-standard) **Don't share:** - Revenue or revenue per order - Current fulfillment costs - Gross margins or unit economics - Specific supplier names - Strategic plans beyond next 12 months - Customer names or customer list - Competitive positioning or competitive threats **Why this approach:** Providers need specifics to quote accurately. But you are still not intimate. You are evaluating multiple providers simultaneously. **Example RFP (appropriate detail):** "We ship 4,200 orders per month (historical average, Q4 reaches 8,500). 65% are DTC via Shopify, 30% wholesale to 4 distributors, 5% Amazon. Our SKU mix is 85 beauty products (mostly bottles and jars, 40% require climate-controlled storage). Orders average 2.3 items. 15% of orders include gift kitting (3-4 items assembled together). We require 24-hour ship time for DTC orders, 3-5 day for wholesale. We expect 30% growth over next 12 months." ### Stage 3: Deep Dives with 2-3 Finalists (Finalist Pool: 2-3 providers) **What to share:** More sensitive data, including some financial information At this stage, you are deciding between real options. Finalists need more detail to plan accurately. **Share:** - Current fulfillment cost breakdown (per order, storage, returns) - Growth projections with more detail - Seasonal patterns and Q4 requirements - Edge cases and exceptions in your operation - Your ideal timeline and go-live requirements - Any technology integrations or custom requirements **Consider sharing:** - General revenue range (if it helps them understand your scale) but not exact figures - Gross margin (if relevant to pricing negotiation) but frame as "to validate unit economics work" **Still don't share:** - Specific customer names or customer concentration data - Supplier names (they do not need to know where your products come from) - Detailed 3+ year strategic plans - Competitive information about your market - Employee names/org structure (beyond point of contact) **Why this approach:** Finalists will become your 3PL. They need to understand your business deeply. But you still maintain boundaries on information that is strategically valuable beyond fulfillment. **Example finalist conversation:** "Our current fulfillment cost is $4.80 CPO. We grew 45% last year and expect 35% this year. We have a major Q4 spike where volume goes from 4,000/month to 12,000. We need a provider who can handle that surge and scale back down in January. Here is our detailed product catalog and current seasonal calendar." ## Use NDAs to Protect Sensitive Data A Non-Disclosure Agreement (NDA) is a legal document that says "if we share confidential information with you, you agree not to share it with others or use it against us." **When to use an NDA:** **Always:** With finalists before sharing detailed operational data **Consider:** With broader RFP pool if you are worried about competitive leakage **Not necessary:** For screening conversations (you are not sharing sensitive data anyway) **What to include in an NDA:** - Definition of what is confidential (your product specs, volume data, projections, costs) - Duration (typically 2-3 years after disclosure) - Exception for publicly available information - Requirement that 3PL not share with other clients without permission - What happens if 3PL breaches (legal recourse) **Simple NDA template language:** "During RFP evaluation, [Your Company] may share confidential operational and financial information with [3PL Provider]. [3PL Provider] agrees to: 1. Keep all shared information confidential 2. Not share with other clients without written permission 3. Not use information for competitive advantage against [Your Company] 4. Return or destroy information if partnership does not proceed 5. These obligations last for 2 years after end of evaluation" **Reality check:** Most 3PLs will sign an NDA without fuss. If a provider refuses to sign a basic NDA, that is a red flag. Why would they refuse unless they plan to share your data? ## What Providers Actually Need to Quote To cut through the confusion, here is what providers genuinely need to quote accurately: **Must-have:** - Product dimensions and weights - Number of SKUs - Order volume (historical and projected) - Handling requirements (fragile, kitting, etc.) - Storage requirements (ambient, climate, cold) - Shipping speed requirements - Channel breakdown **Nice-to-have (improves accuracy):** - Current fulfillment cost (gives them baseline) - Growth rate and projections - Seasonal patterns - Your SLA expectations **They don't actually need:** - Your revenue - Your margins - Your supplier names - Your strategic plans - Your customer data If a provider is asking for information beyond what is listed above, ask why. Be skeptical of requests for data that is not relevant to fulfillment operations. ## Red Flags: When a Provider Is Asking for Too Much **Red flag #1: Asking for customer names or customer list** They do not need this to quote. They might be building a competitive list or planning to pitch your customers. **Your response:** "Customer data is not relevant to evaluating fulfillment capabilities. We can discuss customer-facing service expectations without sharing customer details." **Red flag #2: Asking for supplier information** They do not need to know where you source products to quote fulfillment. **Your response:** "Supplier information is confidential. We can discuss inbound logistics and receiving requirements without naming suppliers." **Red flag #3: Asking for your current 3PL name** They might contact your current 3PL to get competitive information or poach your account manager. **Your response:** "We prefer not to name our current provider until we are further along in evaluation. We can discuss performance gaps we are trying to address." **Red flag #4: Asking for exact revenue or customer concentration** Not directly relevant to quoting fulfillment unless you are verifying unit economics. **Your response:** "We can discuss order volume and growth projections. Detailed revenue information is not relevant to fulfillment evaluation." ## How to Handle Competitive Intelligence Concerns If you are worried about data leakage to competitors: **1. Use generic descriptions in early-stage RFP** Instead of: "We ship 4,200 orders/month" Use: "3,000-5,000 orders/month" (range instead of exact) Instead of: "40% growth" Use: "20-40% growth" (range) Finalists still get exact data, but broad pool does not. **2. Ask providers how they protect client data** "How do you prevent shared confidential information from reaching other clients or competitors?" Good answer: "We maintain strict data security protocols. Confidential client data is segregated. No account teams discuss one client's data with another client." Bad answer: "Our team is trustworthy." (Not a process, just a promise) **3. Require NDAs before sharing detailed data** Legal protection is better than just asking nicely. **4. Assume the worst-case scenario** If you would hate for a competitor to know something, do not share it broadly. Share with finalists only, and under NDA. **5. Do not name your current 3PL** Competitors would love to know who you use. Save this info for finalist stage only. ## What Not to Share in Any Stage Some information should never be shared in an RFP, regardless of stage: **Customer list and customer names** - Not relevant to fulfillment evaluation - Competitive intelligence value is very high - Risk is high **Detailed financial information (revenue, margins, profit)** - If you need to share to validate unit economics, share ranges not exact figures - Even finalists do not need exact profit data **3-5 year strategic plans** - Providers only need 12-month outlook to plan capacity - Long-term strategy is not relevant **Intellectual property or proprietary formulas** - If you have proprietary products, describe category not composition - No 3PL needs to know how your products are made **Employee names and org structure** - Beyond point of contact, this is not relevant - You do not need to introduce your entire team **Competitor information** - What you know about competitor offerings or pricing - Strategic positioning relative to competitors ## The Data Sharing Conversation When you are deciding what to share, ask yourself: **1. Is this data essential for the 3PL to quote accurately?** If yes, share it (protected under NDA if sensitive). If no, do not share it. **2. Would I be upset if a competitor knew this?** If yes, only share with finalists under NDA. If no, can share more broadly. **3. Is there a way to convey the information without sharing the exact number?** Instead of "revenue is $500K/month," say "we are a $5M+ ARR brand" Instead of "margin is 65%," say "we operate on sustainable unit economics" Instead of "we have 50,000 Amazon reviews," say "we are an established Amazon seller" **4. Will hiding this data result in bad quotes?** If yes, share it (probably in finalist stage, maybe under NDA). If no, it is safe to protect. ## The Right Approach: Transparency with Boundaries The goal is **transparent honesty about your operational requirements with boundaries around strategic information.** You are not trying to trick providers or hide how complex you are. You need accurate quotes. You need providers to understand your operation. But you also get to decide what information is relevant and what is off-limits. **The honest framing:** "We want to share enough operational detail that you can quote accurately. We also need to protect confidential business information. We will share specific product specs, volumes, and requirements. We will not share customer data, supplier information, or long-term strategic plans. Does this work for you?" Most providers will respect this boundary. If they do not, they are the wrong partner. ## Transparency Builds Better Quotes Providers who understand your operation accurately will quote more competitively and deliver better service. Providers who are kept in the dark will quote conservatively (higher pricing) because they do not want to lowball and lose margin. The paradox: **being transparent about complexity leads to better pricing than hiding it.** When you say upfront "here is what makes us complex, here is what we need," providers respond with accurate quotes based on your reality, not their worst-case assumptions. When you are vague, providers assume worst-case and price accordingly. Share what is necessary for accuracy. Protect what is strategically sensitive. Ask for NDA protection when needed. That is the right balance. --- **Need help preparing your 3PL RFP and deciding what data to share?** [Slotted](https://slotted.com) provides RFP templates, data-sharing guidance, and NDA language to help you get accurate quotes while protecting your business.