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TAGG Logistics Home Page >> News, Press Releases and Articles of Interest>> A Midwest Third Party Logistics (3PL) Center Will Save You Money
A Midwest Logistics Center Will Save You Money
Dawn Norman , TAGG Logistics
All third party logistics (3PL) companies are not the same. While most offer a similar range of logistics services, location plays a major part in whether outsourcing logistics is a cost effective strategy. Without a doubt, logistics companies based centrally in the Midwest have a leg up on the competition: LOCATION. LOCATION. LOCATION.
Distribution and order fulfillment based in a Midwest city, like St. Louis, MO, means products will get to their final destination cheaper and faster. Logistics companies, like TAGG Logistics, can take advantage of lower parcel and freight rates for every shipment. The savings add up to thousands of dollars annually as quantities increase. Furthermore, with no additional cost, by shipping from a Midwest location your package can arrive one or two days faster!
The chart below shows typical savings that can be acheived when shipping from St. Louis to a variety of destination cities.
| To/From | Seattle | L.A. | Denver | Houston | St. Louis | Miami | New York | Boston |
| Seattle | $6.69 | $8.44 | $9.04 | $10.50 | $9.51 | $10.50 | $10.50 | $10.50 |
| L.A. | $8.44 | $6.69 | $8.44 | $9.04 | $9.51 | $10.50 | $10.50 | $10.50 |
| Denver | $9.04 | $8.44 | $6.69 | $8.44 | $8.44 | $9.51 | $9.51 | $9.51 |
| Houston | $10.50 | $9.04 | $8.44 | $6.69 | $8.44 | $8.44 | $9.04 | $9.51 |
| Miami | $10.50 | $10.50 | $9.51 | $8.44 | $9.04 | $6.69 | $9.04 | $9.04 |
| St. Louis | $9.51 | $9.51 | $8.44 | $8.44 | $6.69 | $9.04 | $8.44 | $9.04 |
| New York | $10.50 | $10.50 | $9.51 | $9.04 | $8.44 | $9.04 | $6.69 | $7.05 |
| Boston | $10.50 | $10.50 | $9.51 | $9.51 | $8.44 | $9.04 | $7.05 | $6.69 |
| Average Cost/Package (8lbs UPS Ground) | $9.46 | $9.20 | $8.70 | $8.76 | $8.56 | $9.10 | $8.85 | $8.98 |
| Monthly Cost of 1,200 Packages/Month | $11,352 | $11,043 | $10,437 | $10,515 | $10,277 | $10,914 | $10,616 | $10,776 |
| Monthly Savings by Shipping from St. Louis | $1,076 | $767 | $161 | $239 | n/a |
$638 | $339 | $500 |
| Yearly Savings by Shipping from St. Louis | $12,906 | $9,198 | $1,926 | $2,862 | n/a |
$7,650 | $4,068 | $5,994 |
The chart below shows typical transit times, in days, when shipping from St. Louis to a variety of destination cities.
| To/From | Seattle | L.A. | Denver | Houston | St. Louis | Miami | New York | Boston |
| Seattle | 1 | 3 | 3 | 4 | 4 | 6 | 5 | 5 |
| Los Angeles | 3 | 1 | 3 | 3 | 4 | 4 | 4 | 4 |
| Denver | 3 | 3 | 1 | 3 | 2 | 5 | 4 | 4 |
| Houston | 5 | 3 | 3 | 1 | 3 | 3 | 4 | 3 |
| Miami | 5 | 4 | 4 | 3 | 3 | 1 | 3 | 3 |
| St. Louis | 4 | 4 | 2 | 3 | 1 | 3 | 3 | 3 |
| Indy | 4 | 4 | 3 | 3 | 1 | 3 | 2 | 3 |
| Chicago | 4 | 4 | 3 | 3 | 1 | 3 | 2 | 2 |
| New York | 5 | 4 | 5 | 3 | 3 | 3 | 1 | 1 |
| Boston | 5 | 4 | 5 | 4 | 3 | 3 | 1 | 1 |
| Average Shipping Days (8lbs UPS Ground) |
4.00 | 3.45 | 3.27 | 3.00 | 2.45 | 3.27 | 2.82 | 2.91 |
Would your organization benefit from a more cost effective outsourced logistics partnership? Contact TAGG Logistics for a free comprehensive review of your order fulfillment, shipping and distribution needs. Let us compare your current distribution costs to the costs of shipping from our facility. We are confident that our Midwest location can save you money.
TAGG Logistics - Where a Midwest logistics location translates to lower shipping costs and faster delivery of your orders.
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