What is 3PL & How Can it Save You Time & Money?

What is 3PL & How Can it Save You Time & Money?

Using a 3PL is a smart business move for any company sourcing or manufacturing product regardless of the business size.  A 3PL manages all aspects of warehousing and distribution for you, allowing you to focus on growing your business whilst saving both time and money.

Tailored Warehousing & Distribution is a 3PL provider, we offer tailored services specific to our customer requirements.  Our customers pay only for the space and services used which represents a huge opportunity to save money that may otherwise have been spent on warehouse space or staffing.  Plus, due to the volume of freight we send and receive we have access to freight rates not typically available to most businesses.

A Case Study:

Company “I Love Candles” are based in the upper North Island, they produce 3 types of candle and sell direct to the public via their website and also to retail stores.  The majority of their orders are sent to the South Island – currently the average delivery takes 3 to 4 days which they would like to see improved.

They require:

  • Ongoing storage at our secure facility for 1 pallet of each candle type (3 pallets total).
  • Pick/packing services for an average of 20 orders per week.
  • Distribution of orders at competitive freight rates and fast delivery.
  • Daily reporting of orders shipped with tracking information.
  • Daily stocktake of product in warehouse.

Because TWD offers a tailored service we are able to meet these needs.  An example of cost is shown below:

  • Storage of 3 pallets at our secure facility:  $3.85 per pallet per week ($11.55 per week total).
  • Pick/Packing of 20 orders: $2.00 per order ($40.00 total).
  • Distribution of 20 orders to South Island destinations with overnight service as far as Christchurch: $9.00 per order based on a weight of 10kg ($180.00 total).
  • Administration: $50.00 per week (covers all aspects of reporting including daily stocktake)

This case study shows that “I Love Candles” weekly spend with TWD is $281.55 for this sample week which is a fraction of what they would have paid had they been renting/leasing storage space and/or employed a warehouse staff member.  In fact, the cost of shipping from the upper North Island alone exceeds the total cost of using a complete tailored TWD service.

Please note that this Case study is an example only and prices will vary dependent on space required, number of orders picked/packed and shipping destinations/size and weight.  For a no-obligation free quote specific to your business please get in touch with us.

0800 805 648 or click here

Thanks to Simon from TWD for this great article.

Posted: Tuesday 19 June 2018