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Guide to 3PL Pricing

Guide to 3PL Pricing

April 11, 2024
Posted By
Hafez Ramlan
Title asset to the "Summer Shipping" blog post from Atomix Logistics. A small green 3D truck with a small sun floating above it portrays the hot summer sun during order transport. KW: Ecommerce, 3PL, order fulfillment, fulfillment center, summer order fulfillment, new orders, new customer, temperature, protection, packaging, eco-friendly, sustainability

Is your ecommerce business ready to outsource fulfillment and explore third-party logistics (3PL) pricing? In this comprehensive guide, we'll explore the critical factors shaping 3PL pricing and provide valuable insights to empower your supply chain management while emphasizing important keywords like "pick, pack and ship" and bullet points.

Understanding 3PL pricing

The price your 3PL charges for warehousing, order fulfillment, transportation, and other services has a substantial impact on various points of your supply chain. Whether you're a startup or a well-established ecommerce business, comprehending these factors is crucial.

One crucial aspect to consider is the range of services required from your 3PL provider. From fundamental fulfillment services to value-added offerings such as Atomix Logistics fulfillment pricing, inventory management, kitting, and customized packaging, each service category contributes to the overall cost.

How much does a 3PL charge?

Before diving into the various cost models, let's examine the factors that affect the value of 3PL prices:

  • Services: The range of services you need from a 3PL provider is the greatest cost driver. Consider how services like warehousing, pick and pack, kitting, shipping orders, and inventory planning create value for your business.
  • Specialization: Some 3PL providers offer specialized solutions to unique logistics challenges, such as shipping large or heavy items.
  • Scalability: Your 3PL should be able to scale with your business growth, offering increased services on demand without sacrificing efficiency or incurring unnecessary costs.

3PL Services

The services you require from a 3PL provider can significantly impact your costs, but don't fret! An experienced 3PL can help you understand and optimize these expenses. Let's break down how each service adds value to your business:

  • Warehousing: Think of warehousing as your strategic storage space. By placing your inventory strategically, you ensure speedy order fulfillment and cut down on shipping costs by having stock close to your customers.
  • Pick and Pack: Picture a well-oiled machine for picking and packing. This streamlined process not only reduces errors but also speeds up fulfillment, leaving your customers happier than ever.
  • Kitting: Imagine bundling products like a pro, offering your customers irresistible deals. This not only boosts sales but also increases revenue by providing curated offers tailored to their needs.
  • Shipping: Negotiated shipping rates is one of the major benefits of partnering with a 3PL. By securing volume discounts across a reliable carrier network, you ensure deliveries are on time, cut down on landed costs, and boost your bottom line.
  • Inventory Planning: Think of inventory planning as your secret weapon against stock-related headaches. By optimizing your stock levels, you prevent stockouts, minimize excess inventory, slash carrying costs, and make smarter purchase decisions.

Additional Services

Special Projects

3PL special projects refer to unique or customized logistics initiatives that go beyond standard warehousing, fulfillment, and transportation services. These projects are tailored to meet specific needs or challenges faced by a company's supply chain.

These projects can vary widely depending on the requirements of the client. They may involve tasks such as:

  • Custom Packaging Solutions: Designing and implementing specialized packaging solutions for fragile or unusually shaped items to ensure safe transport.
  • Seasonal Promotions Support: Assisting with the planning, execution, and fulfillment of seasonal promotions or marketing campaigns, including kitting and bundling of products.
  • Reverse Logistics Management: Handling the reverse flow of goods, including returns processing, refurbishment, recycling, or disposal of products.
  • Inventory Optimization Projects: Analyzing inventory data to optimize stock levels, reduce excess inventory, and improve inventory turnover rates.
  • New Product Launch Support: Providing logistical support for the launch of new products, including warehousing, fulfillment, and distribution services.
  • Special Event Logistics: Managing logistics for trade shows, exhibitions, or other special events, including transportation, setup, and teardown services.
  • Supply Chain Consultancy: Offering consultancy services to identify opportunities for cost savings, process improvements, or supply chain optimization.

Freight cost optimization

When it comes to managing your supply chain, optimizing freight costs is essential for maintaining profitability and competitiveness. Atomix understands the importance of efficient freight management and offers solutions tailored to help you minimize expenses while maximizing efficiency.

With Atomix, you have access to a network of freight partners who specialize in cost optimization strategies. Whether it's consolidating shipments, negotiating volume discounts, or leveraging alternative transportation modes, our partners are equipped to help streamline your logistics operations and reduce freight costs.

Understanding 3PL Pricing: Warehouse, Fulfillment, and Software

When it comes to partnering with a third-party logistics (3PL) provider, understanding the pricing for warehouse services, fulfillment operations, and software solutions is essential. Let's explore the specifics of each:

3PL Warehouse Pricing

3PL Warehouse cost and storage fees typically depends on factors such as storage space utilization, handling fees, and value-added services like inventory management and kitting. Providers may offer different storage costs, including per square foot rates or monthly fees based on storage volume. Understanding your warehousing needs and negotiating pricing accordingly can help optimize costs.

3PL Fulfillment Pricing

Fulfillment pricing encompasses the cost of order processing, pick and pack services, and shipping. 3PLs may charge fulfillment fees per order, per item, or based on order volume and complexity. Additional charges may apply for expedited shipping, special packaging, or returns processing. By analyzing your fulfillment process requirements and comparing pricing structures, you can find a solution that meets your needs without breaking the bank.

3PL Software Pricing

Software solutions offered by 3PL providers, such as inventory management systems or order tracking platforms, often come with their own pricing models. Pricing may be based on factors like the number of users, features included, or usage volume. Understanding the cost of software solutions and their integration with your existing systems is crucial for making informed decisions and maximizing efficiency.

Pick and Pack Pricing

Pick and pack fees refer to the charges associated with selecting products from inventory, packaging them, and preparing them for shipment to customers. These fees typically include labor costs for picking items from shelves, packaging materials, and the actual packing process.

Factors in 3PL Cost Models

Now, let's explore the various cost models and how they impact your logistics expenses:

Transactional, tiered, and all-inclusive pricing structures offer unique advantages based on your business needs and objectives. Understanding these models is essential for making informed decisions about your logistics expenditure.

Choosing the Right 3PL Pricing Model

When evaluating 3PL fees and costs, consider factors such as your business size, operational complexity, and growth trajectory. Startups or businesses with limited products may benefit from a simple fee structure based on order or item volume.

As your business expands, explore more intricate pricing models to accommodate evolving requirements. Transparency in 3PL rates is crucial for cost control, ensuring clarity regarding service-specific costs and potential price fluctuations.

Guarantees and Transparency

Guarantees can go a long way in protecting you from financial loss or waste. Look for 3PL providers that offer guarantees to preserve pricing advantages and minimize fulfillment costs.

Transparency in 3PL rates is essential for keeping costs under control. Ensure clear communication regarding cost figures and potential factors that could impact pricing, such as regulatory changes, equipment shortages, and carrier rate increases.

What are the costs associated with Atomix Logistics?

In essence, the answer varies depending on your specific requirements. We approach each client's needs individually, tailoring our services to precisely match what's necessary, without any unnecessary extras. However, here's some general information that might offer some insight.

At Atomix Logistics, our cost effective solutions emphasize high-value services with exceptional precision and a proactive approach to minimizing landed costs. We provide transparent and straightforward pricing models covering a diverse range of services.

With fulfillment centers situated in Milwaukee and Salt Lake City, we can reach 96% of the U.S. within two days or less, often at a lower expense compared to coastal warehouse locations. Swift and accurate shipping not only enhances customer satisfaction but can also contribute to increased revenue and decreased customer acquisition costs.

Get a 3PL Quote

Ready to streamline your logistics costs and enhance operational efficiency? Reach out to us today to discover our tailored 3PL solutions designed to meet your business needs!

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