As Your Business Grows, Which Warehouse Operation Are Cheaper with a 3PL?

As business volumes grow, 3PL bills also rise. Given the monthly 3PL fees, businesses may ask: would it be cheaper to lease a warehouse and hire staff to process orders?

U.S. companies are also making these calculations. According to CBRE’s 2026 U.S. Industrial & Logistics Occupier Survey, more than 32% of respondents plan to increase their use of 3PL over the next three years.

This article outlines specific operational tasks where continuing to use 3PL services may be more cost-effective, using examples from well-known companies to explain why they still delegate select warehouse operations to 3PL.

Which Tasks May Still Cost Less When Handled by 3PL?

1. U.S. Retailer Order Processing

Fulfilling orders for U.S. retailers involves different retailer requirements for case pack quantities, outer carton labels, routing arrangements, and dispatch documentation. 3PL equipped with retailer-specific workflows can read requirements directly from purchase orders, enabling warehouse staff to follow step-by-step instructions for packing, scanning and checking, and record-keeping. If the warehouse identifies errors before outbound shipping, sellers can reduce relabeling, reshipment, and retailer chargebacks.

2. Customized Gift Boxes and Kitting

When sellers launch holiday gift sets or rotate product bundles for different customers, waiting until orders arrive to pick individual items causes repetitive item searches and increases the risk of missing items. 3PL capable of kitting can verify and assemble products and gifts into complete sets and apply barcodes in advance. Upon receiving an order, warehouse staff pick a single kitted unit, reducing picking frequency and rework caused by missing items. This approach is suitable for products with frequently changing bundle combinations, whereas fixed, long-term high-volume kits are typically assembled during manufacturing.

3. Returns Processing and Inventory Restocking

Selling to consumers across the United States results in returns arriving continuously from various regions. 3PL with mature return services may even allow consumers to drop off items locally; the logistics network verifies returned items, consolidates shipments, and routes them directly to processing warehouses. After inspecting returned products, the warehouse repackages items that meet seller standards and returns them to sellable inventory. Processing returns and outbound shipments within the same facility can reduce the need for item-by-item return transport, enabling select products to complete inspection and restocking on the same day, shortening the time these products remain unavailable for sale.

4. Parcel Shipping Procurement

As order volumes grow, monthly outgoing parcel counts increase, but an individual seller's volume may still fall short of qualifying for favorable carrier rates. 3PL aggregate parcel volume across multiple clients to negotiate shipping rates with carriers.

5. Storage and Shipping for Hazmat Goods (Including Batteries)

Operating a self-managed warehouse requires implementing specialized safety management protocols and shipping procedures, even when only a small number of products are classified as dangerous goods. Hazardous materials, such as lithium batteries, pose risks of fire and explosion during storage and handling. Under U.S. Department of Transportation regulations, personnel responsible for hazmat handling, packaging inspection, and shipping must receive job-specific training, and training records must be retained.

Consequently, managing hazardous goods alongside standard inventory requires sellers to allocate compliant storage space and provide staff training, driving up warehouse operating costs. When hazmat order volumes are low or shipment volumes are unstable, allocating facility and labor overhead across few units may increase total per-unit costs.

3PL with specialized handling capabilities maintain pre-established personnel and operational workflows. FBD GROUPS team specializes in Class 8 and Class 9 hazmat goods handling, providing warehouse management for electric products, batteries, and new energy products, backed by hazmat logistics personnel to ensure safe and reliable transportation at every stage.

Why Do Large Companies Still Use 3PL Services?

Even when order volumes are large enough to support dedicated self-operated facilities, many major enterprises still choose to outsource warehouse operations to specialized logistics providers. Ultimately, owning warehouse facilities and managing warehouse operations represent two distinct operational choices.

1. PUMA: Elevating Operational Expertise and Efficiency

PUMA has several highly automated distribution centers in the U.S. spanning millions of square feet to concurrently fulfill orders from wholesale, retail store, and e-commerce channels. Despite investing in large distribution facilities, PUMA chose Maersk to manage its warehouse operations, relying on the logistics provider's complex supply chain management capabilities to enhance overall efficiency and control operational costs. (Maersk)

2. Hasbro: Managing Operational Complexity and Seasonal Volatility

Toy manufacturer Hasbro follows a similar strategy. GXO operates a distribution center covering hundreds of thousands of square feet for Hasbro in Georgia, managing fulfillments for both supermarket retailers and orders placed directly through Hasbro's website. Serving distinct client bases involves vastly different order requirements, compounded by holiday peak seasons that require significant staffing adjustments (where staffing needs can double). Hasbro continues to use a 3PL Operator to navigate this operational complexity and maintain peak-season flexibility.

3. 3M and Procter & Gamble: Using Selected Services as Needed

Large enterprises do not always bundle all logistics operations with a single provider, opting instead to utilize specific services as needed. For example, Procter & Gamble and 3M primarily utilize Amazon's freight transportation services; Lands' End utilizes Amazon's network to handle multi-channel order fulfillment; and American Eagle leverages Amazon's parcel delivery network for official website orders.

As businesses grow, sellers should reassess which tasks their 3PL currently handle and calculate the incremental headcount, equipment, and management time required to replicate the same inbound receiving, inventory management, order processing, and transportation tasks under a self-managed model.

FBD GROUPS provides One-Stop 3PL Logistics Solutions and specializes in handling Class 8 & 9 dangerous goods. Our services bring together international freight forwarding, drayage, warehousing, last-mile delivery, and reverse logistics for products entering the U.S. (FBD GROUPS)

Sellers can also assign return operations that require ongoing labor and technical resources to FBD GROUPS. FBD Wattsup, the reverse logistics arm within FBD GROUPS, provides RMA Services. Its services include receiving returned packages, inspection and diagnostics, repair, replacement, refurbishment, testing and quality checks, repackaging, reselling, recycling, and disposal, based on product condition.

The team specializes in electronic products such as e-bikes, robots, and portable power stations and can professionally store disassembled batteries.