How to compare 3PL quotes on the same order profile
Compare two illustrative fulfillment quotes, calculate monthly minimum shortfalls, and see why the lowest pick fee may not mean the lowest bill.
Calculate the complete monthly bill
At two units per order, there are 1,000 additional picks. The return estimate is 50 orders. Provider A’s eligible pick fees total $2,500, leaving a $500 shortfall against its $3,000 minimum. Storage, shipping, returns, and the account fee remain payable on top because they are not marked eligible in this example.
Provider B has a lower base pick fee but higher additional-pick, storage, and shipping costs. It still has the lower recurring total at this volume because no minimum is entered for B. A comparison should show the full breakdown rather than label a provider from the base fee alone.
| Monthly line | Provider A | Provider B |
|---|---|---|
| Base pick and pack | $2,000 | $1,500 |
| Additional picks | $500 | $800 |
| Minimum shortfall | $500 | $0 |
| Storage | $1,000 | $1,100 |
| Shipping | $5,000 | $5,200 |
| Returns | $150 | $150 |
| Account fee | $100 | $100 |
| Recurring monthly total | $9,250 | $8,850 |
| Cost per order | $9.25 | $8.85 |
| Cost per order without shipping | $4.25 | $3.65 |
| Year one, including setup once | $111,500 | $107,000 |
Enter the minimum’s eligibility explicitly
In the calculator, add separate lines for base picks, additional picks, storage, shipping, returns, and the account fee. Enable Provider A’s monthly minimum and mark only the two pick lines as counting toward it. Put the setup amount in the one-time setup field rather than a recurring monthly line.
Minimum shortfall = max(monthly minimum − eligible subtotal, 0). Adding the whole $3,000 minimum after the $2,500 pick subtotal would double-count charges. Marking shipping as eligible without contractual support would understate the shortfall. Confirm the definition with the provider before using the estimate in a decision.
Eligible subtotal = 1,000 × $2.00 + 1,000 × $0.50 = $2,500
Shortfall = max($3,000 − $2,500, 0) = $500
Recurring total = $2,500 + $500 + $1,000 + $5,000 + $150 + $100 = $9,250
Year one = 12 × $9,250 + $500 setup = $111,500Check what changes when orders double
For a second scenario, use 2,000 orders with the same units per order and return rate. Keep inventory fixed at 50 pallets by turning inventory scaling off. Provider A’s eligible fees rise to $5,000, so its minimum no longer adds a shortfall. A totals $16,400, or $8.20 per order; B totals $16,500, or $8.25 per order. The ordering of the estimates changes.
If stored inventory or receiving activity should grow with orders, enable scaling and review those quantities instead. Manually entered monthly estimates and fixed monthly fees do not automatically become a different rate card. Volume bands use one rate for the entire applicable quantity, not graduated rates for separate portions. Model the exact contract convention.
Check the omissions before choosing a provider
Ask about packaging, inbound handling, peak surcharges, dimensional weight, special projects, taxes, and the term of any discount. Convert quotes into one currency before entry; the currency control formats amounts and does not fetch exchange rates. Compare service coverage and operating requirements separately from cost.
The year-one estimate assumes identical activity for twelve months and adds setup once. It is not a cash-flow forecast for a seasonal business. Save the assumptions with your local project, review the exported breakdown with each provider, and protect exports that contain commercial terms.