When a third party logistics / warehouse provider ships your company’s order, the product looks like it comes directly from your company, however the people who prepare & ship the product are employees of the 3PL.
When fulfilling your orders a third party logistics / warehouse provider charges you every time they touch something meaning that they are charging you every time they go to a shelf and grab a product to put into a box (often called a cost per unit).
Some third party logistics / warehouse providers will also offer “cost plus” or “open book” pricing, which means that they take their costs and add a margin to the amount you pay. They often do this when the scope of work is unclear and it’s hard to gauge what their costs will be.
The main advantage of a good third party logistics / warehouse provider is that we utilize our domestic teams across multiple accounts. The Operations Manager on your account may be working on several accounts so you only pay for a portion of their salary; similarly, the cost of a forklift lease or software might also be shared across multiple accounts.
Last Mile Logistics has hundreds of domestic warehouse partners around the country who can handle your inventory.
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