3PL Pricing Models - Here are the options

Companies looking to outsource their warehousing are keen to understand what pricing options are available to them. Generally, there are 3 categories:

1. Transactional Billing-   this is an activity based cost model and is the most popular, given the attraction of a user-pays concept. The charges are constructed  as follows:

•    storage ( per pallet per week)
•    devanning per FCL ( full container load),
•    receipt & putaway( by unit, pallet, carton)
•    order assembly ( base fee plus per unit/line/pallet)
•    hourly rate to cover stocktakes, rework, etc.

2. Cost /Plus model – a fixed monthly fee constructed from base costs with a margin added

3. Percentage of Sales revenue. A rarely used option, but one that remunerates the 3PL provider based upon the owner’s sales revenue generation.

For More information and professional advice contact Jim Coley e-mail, jim.coley@onlinedistribution.co.nz
Online Distribution / 3PL Specialists
www.onlinedistribution.co.nz