When to Consider Outsourcing to a 3PL with Valentin Kuznetcov

Blues Brothers Podcast

In this podcast episode, Nathan and Val discuss the topic of 3PLs (third-party logistics providers). They cover the factors to consider when deciding whether to use a 3PL, such as cost, volume, and customer service. They also explore the differences between in-house fulfillment and outsourcing to a 3PL, and the considerations for brands with low volume and high ticket products. Val provides insights into the 3PL landscape in Australia and the United States, and emphasizes the importance of conducting a cost-benefit analysis and asking the right questions when evaluating 3PL partners.
Takeaways

• The decision to use a 3PL should be based on a cost-benefit analysis, considering factors such as current costs, order volume, and the level of service required.
• There is no one-size-fits-all solution when it comes to 3PLs. Each business needs to assess its own needs, resources, and goals to determine whether in-house fulfillment or outsourcing is the best option.
• The 3PL landscape varies by country, with the United States having a more mature market and a wider range of options compared to Australia.
• For brands with low volume and high ticket products, it may be necessary to negotiate with 3PL partners to find a cost-effective solution that meets their specific needs.
• When evaluating 3PL partners, it is important to consider factors such as employee turnover, infrastructure maintenance, and the ability to provide customized services.
• Having an open mind and being willing to explore different 3PL options can help businesses optimize their fulfillment operations and cut costs.

Chapters
00:00 Introduction and Background
02:00 3PLs in Australia vs. Canada and the US
04:22 The Inflection Point: When to Consider Outsourcing
09:33 Cost-Benefit Analysis: Quantitative and Qualitative Factors
12:56 Considerations for Low Volume, High Ticket Brands