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 us