A Midwest Third Party Logistics (3PL) Center Will Save You Money

By August 10, 2011 October 10th, 2019 Articles of Interest

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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