Do 3pls Save money compared to using your own warehouse?

Hello, Im thinking of moving over to a 3pl.

Wondering for the people that switched over a medium sized warehouse to 3pl, did it save any money?

My current warehousing costs are Rent + labor +utilities + cost of shipping. Plus all the head ache of labor.

Im thing a 3pl will save money just on the cost of shipping because of their great negotiated rates alone. however I looked into them and noticed they charge a storage fee and some other fees. Im not sure if their storage is actually cheaper then my own. I also know I would likely still need my own smaller warehouse to receive merchandise and test goods quality and then forward them to the 3pl.

Im also unsure if we can do insurance claims through a 3pl for lost/damaged merchandise?

So with all that maybe it costs the same or even more.

What did you all experience first hand?

submitted by /u/Technasium
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