Finance and pricing, Advanced
3PL Outsource Break-even
Compare in-house transport cost vs outsourced 3PL rates to identify the break-even volume.
Formula: inhouse_total_cost = monthly_volume_tonnes * inhouse_cost_per_tonne + inhouse_fixed_cost_per_month; tpl_total_cost = monthly_volume_tonnes * tpl_rate_per_tonne; monthly_diff = monthly_volume_tonnes * inhouse_cost_per_tonne + inhouse_fixed_cost_per_month - monthly_volume_tonnes * tpl_rate_per_tonne; breakeven_volume = inhouse_fixed_cost_per_month / (tpl_rate_per_tonne - inhouse_cost_per_tonne), when tpl_rate_per_tonne > inhouse_cost_per_tonne
Compare in-house transport cost vs outsourced 3PL rates to identify the break-even volume.
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Formula
inhouse_total_cost = monthly_volume_tonnes * inhouse_cost_per_tonne + inhouse_fixed_cost_per_month; tpl_total_cost = monthly_volume_tonnes * tpl_rate_per_tonne; monthly_diff = monthly_volume_tonnes * inhouse_cost_per_tonne + inhouse_fixed_cost_per_month - monthly_volume_tonnes * tpl_rate_per_tonne; breakeven_volume = inhouse_fixed_cost_per_month / (tpl_rate_per_tonne - inhouse_cost_per_tonne), when tpl_rate_per_tonne > inhouse_cost_per_tonneUse for estimation. Verify safety-critical calculations with qualified review.