In-house logistics might be costing you more than you think…Let’s break down the hidden costs and how a 3PL can save you time & money!
- Storage and Warehouse Costs
Hidden Cost: Renting or owning a warehouse comes with fixed expenses—rent, utilities, security, and maintenance. This decreases your bottom line, limiting what you can reinvest into the business.
3PL Advantage: A third-party logistics provider offers scalable storage, meaning you only pay for the space you use. Additionally, they can have advanced technology to help track and manage your inventory storage.
- Labor & Staffing Expenses
Hidden Cost: Hiring, training, and managing warehouse staff adds up—plus overtime costs during peak seasons can be unpredictable.
3PL Advantage: A 3PL handles staffing fluctuations, so you don’t have to worry about hiring extra workers during peak season or covering salaries during slow periods.
- Shipping Inefficiencies and Missed Discounts
Hidden Cost: Without high shipping volume, you’re paying retail rates and missing out on bulk shipping discounts. Developing and maintaining partnerships with shipping carriers can also be time consuming.
3PL Advantage: A 3PL leverages carrier relationships and volume discounts, reducing your overall shipping costs and optimizing delivery speeds.
- Technology & System Costs
Hidden Cost: Running your own fulfillment operation requires WMS software, order tracking systems, and more—all of which add significant overhead. Conversely, if you want to minimize costs and manually track operations, you may run into disorganization and order mistakes.
3PL Advantage: A 3PL invests in advanced technology (WMS, automation, and tracking tools) that you can use without the upfront cost. Additionally, they have quality assurance processes to ensure accuracy and efficiency.
- Time Lost on Logistics = Time Lost on Growth
Hidden Cost: Managing fulfillment in-house means spending valuable time on inventory, packing, and shipping instead of focusing on business growth, sales, and customer experience.
3PL Advantage: By outsourcing fulfillment, you free up your time and resources to scale your business, develop new products, and build stronger customer relationships—without being stuck in day-to-day logistics.
The Bottom Line – Why Partnering with a 3PL Saves You Money & Headaches
- Pay for what you need, when you need it— no unnecessary fixed costs.
- Eliminate warehouse leases, staffing headaches, and tech expenses.
- Access bulk shipping discounts and fulfillment expertise.
- Free up your time to focus on what really matters – your core business
Contact us about how a 3PL like CBO Solutions can reduce your fulfillment costs and scale your business!
