Work out third party logistics cost instantly with clear inputs, formula shown and shareable results.
Third-party logistics pricing separates storage, charged per pallet per month, from handling, charged per order or per line. The all-in cost per order is the figure to compare with an in-house operation, and it makes the storage burden of slow-moving stock visible.
Monthly cost
Cost = Storage rate x Pallets + Handling rate x Orders
All-in cost per order
Per order = Total monthly cost / Orders per month
Third party usually wins below about 5,000 orders a month or where volume is seasonal, because you buy capacity rather than build it.
Slow-moving stock accumulating pallet charges, and per-line handling fees on multi-line orders that were priced on a per-order assumption.