15 Ways to Reduce Warehouse Expenses

15. Use third-party logistics. Barry noted that his clients have used third-party logistics more in the last two years than in the prior 10. Internal costs have increased to the point where, for many companies, on a total cost-per-order basis, it’s cheaper to use third-party logistics. Additionally, companies avoid having to invest in infrastructure such as warehouses and systems, and have reduced management of fulfillment, call center and IT. Companies instead can concentrate on the critical areas of marketing and merchandising.