Would outsourcing
actually save money?
Separate costs you can remove from costs that stay. Then see how a transition changes the first-year picture.
No signup · Runs in your browserRead the result as a scenario.
A lower monthly bill does not establish the right provider. Capacity, error handling, inventory control and customer experience still need evaluation. This model holds order volume and costs constant for 12 months.
Calculation method and limits
- Current monthly cost = orders × current variable cost + current fixed costs.
- Outsourced monthly cost = orders × 3PL variable cost + 3PL fixed charges + retained fixed costs.
- Monthly savings = current monthly cost − outsourced monthly cost.
- Payback = transition costs ÷ positive monthly savings. No payback is shown when operating savings are zero or negative.
- First-year net savings = 12 × monthly savings − transition costs.
Include comparable services in both scenarios. This tool does not automatically add carrier surcharges, taxes, financing, contract penalties, stepped volume rates or inventory transfer fees. Add applicable recurring fees to your inputs and one-time fees to transition costs. Minimums must be modeled from your contract.