3PL Financial Benefits


Partnering with a 3PL for warehousing, distribution and transportation can provide financial benefits for companies of all sizes. We have highlighted many of them such as efficiency, security and location; make sure you check them out if you haven’t already! One of the most important benefits to a 3PL partnership, however, is the impact that a quality relationship can have on finances and the  bottom line of any company.

3PL Financial Benefits Milwaukee

Here are our top bottom line financial benefits of partnering with a quality 3PL in Milwaukee or across the country:


Working with a 3PL allows a company to be flexible with numerous resources within their supply chain. Everything from warehouse space to transportation volumes are scalable to fit product demand. Flexibility on geography allows you to be nimble and move into new markets as needs arise. Shipping options such as demand or just-in-time allow manufacturers to be flexible with their space because raw materials and finished goods are stored off site and brought in only when they are needed. Overall a 3PL gives a business options that can come in handy during the ebbs and flows of each year!


Variable costs refer to paying for assets only when they are used, verses when they are acquired.  Whether costs are for warehouse space, logistics equipment or labor, charges only occur when one of these services is used. For example, paying by the number of pallets in a warehouse or with a price per square foot is variable while paying for a whole warehouse, no matter how full it is a fixed cost. Having variable costs can be extremely valuable for many businesses. Without having fixed costs such as a mortgage on warehouse space, equipment or salaries, companies can focus spending on what will help business the most! This means that companies have the ability to grow, down-size or move on without issues within their company or for their customers.

Fixed Costs

Utilizing the services of a 3PL can reduce the investment in equipment, buildings and computer systems. Whereby the service provider will charge the client a fixed periodic amount for delivering the service regardless of the activity for the period.

Combination of fixed and variable costs

Whereby the service provider will recover the fixed costs associated with servicing the client (storage and dedicated labor for example ) but then charge a transaction based fee for other activities such as receiving, put away and order fulfillment.


Hiring and training employees is a huge task for Human Resources departments.  Working with a 3PL helps companies refrain from having to hire and train their employees to handle storage, distribution and transportation.


Improving efficiency is an easy way to impact the bottom line of any business. Because logistics is a 3PLs core competency, supply chains run efficiently and effectively when outsourced to a 3PL. Key performance indicators (KPI) are regularly tracked to ensure that accounts are running at peak efficiency at all times.


From ISO Quality, to SQF Food certifications, making sure that products and employees are safe should be a top priority. Becoming compliant and educated on best practices takes resources, time and a lot of money. Quality 3PLs already have these certifications, saving their partners thousands of dollars, annually!


Working with a 3PL helps companies easily expand and move into markets throughout the world! Whether you already have a partner with multiple locations, or are looking to expand into a new market and find new partners – a 3PL can make the transition and expansion more efficient, less expensive and less stressful on your company.

The choice is yours. To find out more about the warehousing options that we have available, give us a call today at 262-409-0057.