Ever wonder how third party logistics providers (3PLs) determine the warehousing rates that they quote to you?  
A new Commercial Warehouse Pricing Guide is now available that explains the basics of how rates are determined.  You can then use this knowledge to control your costs.

I know what you’re thinking...What could be more boring than a guide on warehouse pricing?  Well, we’ve got a question for you in return… How important is it for you to control your warehousing and logistics costs?   By getting smarter about the 3PL pricing process, buyers of warehousing services are in a much better position to impact how product is stored and handled and can actually reduce warehousing costs.  

How much savings are we talking about?   Well, according to the Department of Transportation, total logistics costs represent about 10% of a company’s revenue. Warehousing costs, not including inventory carrying costs, are around 9% of that logistics spend. For a billion dollar company that spends $9 million a year on warehousing, a 15% reduction in these costs adds $1.3 million to company profit. For a smaller, $50 million dollar company, a 15% reduction in warehousing costs translates to about a $68,000 profit increase − still nothing to sneeze at.  

Commercial Warehouse Pricing

The warehouse pricing guide looks at the three basic components of 3PL pricing for commercial warehouses:

1) Inbound Processing – receiving the goods into the warehouse
2) Storage – storing the product
3) Outbound Processing – picking and preparing orders for shipment
We examine the detailed data needed to determine an accurate rate.  And, for each of these areas, we provide examples of how a change in the storage or handling approach can reduce costs.  

Download the Commercial Warehouse Pricing Guide for free.  And let us know what you think!