Higher.The most amazing part is that the much lower rates come from the same carriers you contacted earlier that had given you sky-high pricing.Go ahead and pick a number between 1 and 1,201,920,000,0.You hang up and quickly call the recommended 3PL.With logistics accounting for nearly 40% of total costs, companies are becoming more concerned with finding new cost-effective methods of transportation.To be able to enjoy the profits created by new business, what does the business owner do at this point?Also, your private fleet of trucks can not handle the expected capacity.The same concept is applied when considering warehousing for the expanding business.They're now the norm.Whether a company is considered small, medium or large the ability of a third-party logistics provider to engineer or streamline the supply chain is invaluable to a company.Rather than invest the capital into additional warehouse space, outsource it.No longer is your warehouse sufficient for the increase in business.
You start running some numbers and come to some disheartening conclusions.Let's go back to the scenario of the medium-sized business owner.Whoever guessed 1,201,920,000,000, you're correct!It's quite simple actually, by using economies of scale.
