If your business stores, ships, or delivers products, you’ve probably asked yourself a simple question:
Would it make more sense to keep handling logistics ourselves or outsource some of it to a 3PL?
It’s a good question.
But there’s one mistake businesses make when comparing the two.
They compare their warehouse rent to the price of a 3PL.
That’s not the whole picture.
Your logistics operation costs more than the building you’re renting. It includes your employees, equipment, freight, deliveries, packaging, management time, and all the little problems that come with moving products every day.
The invoice isn’t always the cost.
That’s where the real comparison starts.
Actual photo of customer for Flyght 3PL in Lake Oswego!
What Is a 3PL?
A 3PL, or third-party logistics provider, is a company that handles some or all of your logistics for you.
That can include:
Warehousing and storage
Receiving and inventory
Order fulfillment
Pick and pack
Freight
Freight brokerage
Courier services
Local delivery
Final-mile delivery
And you don’t necessarily have to outsource everything.
Maybe you just need more warehouse space.
Maybe your employees are spending too much time making deliveries.
Maybe your orders have grown and fulfillment is becoming a headache.
Or maybe you need someone to handle the entire operation.
That’s the nice thing about a 3PL. You can build the solution around the problem.
The Real Cost of Doing Logistics In-House
Let’s say your company has its own warehouse.
You know the rent.
But what else are you paying for?
The building
There’s rent, utilities, insurance, maintenance, repairs, racking, shelving, and everything else required to operate the facility.
Then there’s the space itself.
How much of your warehouse is actually being used productively?
How much is receiving space, staging space, aisles, office space, or inventory that doesn’t move very often?
And what happens when you run out of room?
Now you’re looking at another building, temporary storage, more equipment, or a larger operation.
What about the people?
Labor is another obvious cost.
But don’t just look at warehouse payroll.
Look at everyone else touching logistics.
Is your salesperson making deliveries?
Is your office manager tracking freight?
Is your purchasing person calling carriers?
Is your owner dealing with warehouse problems?
Those hours count too.
Ask yourself:
How many people in our company are doing logistics work that isn’t really their job?
That can be a much bigger cost than it first appears.
The equipment:
Forklifts.
Pallet jacks.
Racking and Shelving.
Packing equipment.
Printers.
Computers.
Then you’ve got maintenance, repairs, replacements, and eventually new equipment.
If you outsourced your logistics tomorrow, which of those costs would disappear?
Which would stay?
Which would simply shift into the price of the service?
That’s the comparison you want to make.
What About Deliveries?
This is another one that gets overlooked.
If your company makes its own deliveries, you’re paying for more than fuel.
You’re paying for:
The vehicle
Insurance
Maintenance
Driver time
Repairs
Downtime
And then there’s the person driving the truck.
If that’s a salesperson, they’re not selling.
If it’s a project manager, they’re not managing a project.
If it’s an employee who normally works in the warehouse, they’re not in the warehouse.
Sometimes outsourcing delivery isn’t about finding a cheaper delivery option.
It’s about getting your people back to the work you actually hired them to do.
What About Management Time?
This one is easy to ignore because it doesn’t show up on a warehouse invoice.
Imagine an owner or manager spends six hours a week dealing with logistics problems.
That’s more than 300 hours a year.
What could they have done with that time?
Sold more.
Worked with customers.
Improved operations.
Focused on growth.
Or simply dealt with the things that actually required their attention.
You don’t have to put an exact dollar amount on every hour to understand the point.
Management time has value.
The Question Changes When Your Business Grows
Your current logistics operation might work perfectly fine today.
But what happens if your business doubles?
Do you have enough warehouse space?
Enough employees?
Enough equipment?
Enough delivery capacity?
Enough management time?
That’s the real growth test.
A logistics operation that works at today’s volume may become a bottleneck as the business grows.
And that’s when companies often start looking seriously at a 3PL.
Not because their business is failing.
Because it’s growing.
Is a 3PL Actually Cheaper?
Sometimes.
Sometimes it isn’t.
Anyone who tells you a 3PL is automatically cheaper is oversimplifying the decision.
A 3PL has costs. You’re paying for storage, handling, fulfillment, transportation, and other services you use.
But your in-house operation has costs too.
So don’t compare:
Warehouse rent vs. 3PL invoice.
Compare:
Total cost of your current operation
vs.
Total cost of the outsourced operation.
Then consider the other things that matter:
How much management time will you get back?
Will you need more warehouse space?
Will you need more employees?
Can you handle growth?
Can you handle seasonal demand?
Are your employees spending too much time on logistics?
That’s a much better comparison.
You Don’t Have to Outsource Everything
This is probably the biggest misconception about 3PL.
You don’t have to hand over your entire operation.
You could:
Keep your warehouse and outsource overflow.
Keep inventory control and outsource fulfillment.
Keep some deliveries in-house and outsource others.
Keep your normal operation and use a 3PL during busy periods.
Or you can outsource the whole thing.
It really comes down to the problem you’re trying to solve.
Start with the problem.
If space is the problem, solve space.
If deliveries are the problem, solve deliveries.
If fulfillment is the problem, solve fulfillment.
If everything is becoming difficult to manage, then maybe it’s time to look at the bigger picture.
When Should You Consider a 3PL?
There isn’t a magic number of orders or a specific revenue level where every business suddenly needs a 3PL.
But there are some pretty good warning signs.
You might want to take a closer look if:
You’re running out of warehouse space.
You’re considering another warehouse.
Employees are spending too much time on logistics.
Salespeople are regularly making deliveries.
Management is constantly dealing with freight or warehouse problems.
Orders are growing faster than your operation.
Seasonal demand overwhelms your team.
Inventory is becoming harder to manage.
Freight takes too much time to coordinate.
You want to grow without building a much larger logistics department.
If several of those sound familiar, it’s probably worth running the numbers.
Where Flyght Fits
This is where Flyght comes in.
We’re a Lake Oswego-based logistics company helping businesses with the physical side of getting products where they need to go.
Our services fit into three simple areas:
STORE IT.
Warehousing & Storage
Need space? Need overflow? Need somewhere to receive and hold inventory?
FULFILL IT.
3PL & Fulfillment
Need help managing inventory, preparing orders, or getting products ready to ship?
MOVE IT.
Freight & Delivery
Need freight, freight brokerage, courier service, local delivery, or final-mile support?
You may need one.
You may need two.
You may need all three.
That’s why we start with the business and the problem, not with a one-size-fits-all package.
Start With the Problem
You don’t have to outsource everything.
You don’t have to know exactly what you need.
And you don’t need to commit to a huge logistics change just to start a conversation.
Tell us what you’re storing.
Tell us how you’re shipping it.
Tell us where it’s going.
And tell us what’s causing the headache.
We’ll help you look at where Flyght may be able to help.
STORE IT. FULFILL IT. MOVE IT.
ONE LOGISTICS PARTNER.
Ready to take a closer look at your logistics?