Best Strategies When Picking the Location of Your 3PL Partner

Determining how to find a good storage 3PL warehouse isn’t just about four walls and racks. It’s about optimizing every step of your supply chain. With the global 3PL market now topping $1.1 trillion (GlobeNewswire), selecting the wrong location can inflate costs, delay deliveries, and hurt customer satisfaction. Since switching providers later is complex and costly, getting it right up front is essential. In this guide, we’ll cover:

1. Where your products originate
   
   
2. Where your customers live
   
   
3. Single vs. multi-facility networks
   
   
4. Environmental and risk factors
   
   
5. Proximity considerations
   
   
6. Specialized services (warehouse fit)
   
   
7. In-house vs. outsourced warehousing
   
   
8. ROI calculations
   
   
9. Emerging trends
   
   
10. Top North American and European hubs
    
    
11. Detailed case studies
    
    
12. A step-by-step next-steps checklist

Why Location Matters for Your 3PL Strategy

Location drives your entire logistics performance. According to FHWA, a poorly sited facility can add up to 30 percent to transportation costs and delay deliveries by days. Conversely, strategic placement can reduce outbound shipping spend by up to 25 percent (Mckinsey) and boost on-time delivery rates above 97 percent (CSCMP).

The true cost of location

• Inbound freight and drayage: According to MacMillan, warehouses near ports and airports can save 10–20 percent in drayage fees by minimizing last-mile truck moves.
  
  
• Outbound shipping: Zone-skipping allows packages to ship from the nearest node, cutting last-mile costs by up to 30 percent (Saltbox).
  
  
• Inventory turns: Faster throughput reduces days-on-hand, lowering carrying costs by 3–5 percent.
  
  
• Service levels: Proximity to key markets improves delivery speed, decreasing customer complaints by 40 percent.

Building a total landed cost model

A robust model should include facility rent, labor rates, utilities, inbound and outbound freight, and inventory carrying costs. Compare multiple candidate locations and scenarios, single hub vs. multi-node, to identify your optimal footprint.

Where Is Your Product Coming From?

Before selecting a location, understand your supply origins. Your choice of domestic or international shipping shapes transit times, costs, and facility requirements.

Locally sourced vs. globally sourced

Locally sourced products

• Lower transport costs: Short-haul LTL or parcel freight reduces fees.
  
  
• Rapid replenishment: 1–3 day transit enables agile restocking.
  
  
• Simplified customs: No international paperwork or duties.

Globally sourced products

• Higher landed cost: Ocean, air, and drayage fees add 10–25 percent to unit cost.
  
  
• Extended lead times: 30–45 days door-to-door from Asia.
  
  
• Port consolidation: Many importers funnel through Southern California or Vancouver.

Pro tip: If over half your SKUs come from overseas, prioritize a facility within a 50 mile radius of major ports. ShipBots’ Los Angeles and Vancouver centers can cut drayage fees by 20 percent and accelerate customs clearance.

Port and airport access

Ocean ports

• Los Angeles/Long Beach: Handles 40 percent of U.S. containers.
  
  
• New York/New Jersey: Northeast imports with strong rail links.
  
  
• Vancouver: Canada’s Pacific gateway.

Air freight

• LAX, ORD, JFK, YYZ: Major hubs with on-dock warehousing options.
  
  
• Benefit: Air-freighted goods can be palletized and on-shelf within hours.

Multimodal connectivity

Ecommerce warehouses with direct rail spurs, intermodal yards, or dedicated air cargo facilities simplify multimodal transfers and reduce handling delays.

Where Are Your Customers Located?

Understanding customer geography lets you balance cost and speed. Plot your order density and design your network accordingly.

Centralized vs. regional fulfillment

Centralized (single hub)

• Best for evenly distributed national demand.
  
  
• Typical coast-to-coast transit: 2 business days.
  
  
• Simplified inventory: One pool for forecasting.

Regional (multi-node)

• Speeds delivery in high-density zones (e.g., East and West coasts).
  
  
• Enables same-day or next-day SLAs in key metros.
  
  
• Cuts last-mile spend by up to 30 percent.

Example: An apparel brand with 70 percent East Coast orders increased conversion by 15 percent by adding a New Jersey warehouse for next-day delivery.

International demand

Offshore nodes

• UK and Ireland: English-friendly customs procedures.
  
  
• Netherlands: Central EU location with deepwater ports.
  
  
• Germany: Major manufacturing base with rail connectivity.

Benefits

• Cuts Europe transit from 7–10 days to 2–4 days.
  
  
• Local duty and VAT handling simplifies compliance.

Carrier partnerships

Develop relationships with regional carriers to secure discounted zone rates and tailored service levels. A diversified carrier roster protects against capacity crunches.

Single Facility or Multi-Location Network?

Balancing scale against complexity: more warehouses yield faster deliveries but also increase inventory carrying costs and management overhead. In some cases, splitting inventory can be a helpful tool, but for other scenarios it just isn’t as beneficial.

Benefits of multi-location warehousing

1. Improved service: Meet 1–2 day SLAs in multiple markets.
   
   
2. Operational redundancy: Other sites absorb volume during disruptions.
   
   
3. Zone-skipping savings: Reduced cross-country fees.

Pro tip: Multi-node networks can lower average shipping cost by 12 percent and boost on-time delivery by 8 percent.

When one warehouse suffices

1. Low volume: Under 1,000 daily orders.
   
   
2. Longer SLAs acceptable: Customers willing to wait 3–5 business days.
   
   
3. Budget constraints: Avoids duplicative inventory holding costs.

Pro tip: Model incremental shipping savings against increased carrying costs to make data-driven decisions.

Environmental & Risk Factors

Warehouses operate within geographic and climatic contexts. Factor in climate control needs and disaster resilience.

Climate-controlled vs. ambient storage

• Ambient: Standard for durable goods; costs lowest.
  
  
• Climate-controlled: 65°F–75°F with humidity regulation; adds 20–40% to fees.
  
  
• Cold/frozen: Required for perishables; adds 50–70 percent to fees.

Case study: A vitamin supplement brand avoided $100 K in annual spoilage by moving to a climate-controlled warehouse in Phoenix where summer highs exceed 100°F.

Disaster resilience and backup sites

• Avoid flood plains and high seismic zones for critical inventory.
  
  
• Maintain a secondary site 200+ miles away as a hot or warm standby.
  
  
• Incorporate business continuity plans with automatic failover to alternate nodes.

Proximity to Your Business: Does It Matter?

Hands-on oversight

Regular facility visits can build trust, enable floor-level feedback, and deepen strategic alignment.

Virtual management

Modern WMS platforms and dashboards grant 24/7 visibility into key metrics (inventory levels, order throughput, exception reports), eliminating the need for daily on-site checks.

ShipBots advantage: Clients access a cloud-based portal with custom KPI alerts and on-demand video tours.

Specialized Services & “Warehouse Fit”

Even the best-located facility must offer the services your business requires.

Pick & pack fulfillment centers

Efficient picking strategies (batch, zone, wave pick) boost throughput by up to 50 percent. If you need a dedicated pick and pack warehouse, look for:

• Real-time slotting and pick-path optimization.
  
  
• Automated sortation and robotics for high-velocity SKUs.
  
  
• Barcode scanning and audit checks to keep mispicks under 0.1 percent.

Kitting & assembly services

For bundling, labeling, or sub-assembly, ShipBots’ kitting and assembly services include:

• Ergonomic kit-building stations.
  
  
• Inline quality control to ensure accuracy.
  
  
• Scalable workflows that handle seasonal or promotional surges.

Real-World Example: A consumer electronics brand reduced pre-kit labor by 60 percent using a specialized 3PL.

Fashion & apparel fulfillment

Garments require delicate handling, folding, and quality checks. An apparel fulfillment company offers:

• Garment racks and hanger flow to prevent creases.
  
  
• Soft-goods QC stations for defect detection.
  
  
• Reverse logistics capabilities for returns processing within 48 hours.

Subscription box fulfillment

Subscription models depend on precise timing and customization. A subscription box fulfillment center provides:

• Dynamic slotting to accommodate seasonal inserts.
  
  
• Custom labeling and personalized messaging per subscriber.
  
  
• Scheduled batch processing to meet strict cycle dates.

Shopify Fulfillment Strategy

If you sell on Shopify, integration between your storefront and warehouse is mission-critical. ShipBots’ Shopify fulfillment connector delivers:

• Instant order import from Shopify.
  
  
• Two-way inventory sync that prevents oversells.
  
  
• Automated tracking updates sent directly to customers.

Benefit: Eliminates manual data entry, reducing order errors by 100 percent and cutting support inquiries by 30 percent.

In-House vs. Outsourced Warehousing

For fast-growing ecommerce brands, outsourced warehousing offers flexible capacity, expert processes, and advanced technology without heavy up-front investment.

Emerging Trends in 3PL Location Strategy

Micro-fulfillment centers

Compact, often urban, robotic hubs fulfill last-mile ecommerce orders in under 4 hours. Ideal for grocery, pharmacy, and high-velocity retail.

Sustainable warehousing

Green facilities integrate solar power, electric vehicle charging, and recycled-material packaging. Over 65 percent of consumers prefer brands with eco-friendly logistics.

Data-driven site selection

Advanced analytics and AI models evaluate demographic density, carrier lane costs, weather patterns, and real-time traffic data to predict optimal warehouse siting ahead of peak seasons.

Internet of Things (IoT) and digital twins

Sensors monitor temperature, humidity, and inventory movement, feeding real-time data into digital twins, virtual replicas of your warehouse, for proactive optimization.

Top 3PL Locations in North America & Europe

United States

• Southern California (LA/Long Beach): Premier import hub for Asia.
  
  
• Northeast Corridor (NJ/NY/CT): Dense population with robust rail and highway networks.
  
  
• Central US (Chicago, Dallas, Houston): Balanced reach with lower real estate costs.

Canada

• Greater Toronto Area (GTA): Canada’s ecommerce epicenter.
  
  
• Vancouver: Pacific gateway for trans-Pacific trade.

Europe

• United Kingdom & Ireland: English-friendly customs and business climate.
  
  
• Netherlands: Central EU location, advanced infrastructure, favorable tax environment.
  
  
• Germany: Major manufacturing and distribution hub with strong rail connectivity.

Next Steps & Checklist

1. Map your supply chain: Document product origins, transit lanes, and modal splits.
   
   
2. Analyze customer footprint: Plot order density against delivery SLAs.
   
   
3. Define service requirements: Identify pick & pack, kitting, climate control, returns workflows.
   
   
4. Model facility count: Compare shipping savings vs. inventory carrying costs.
   
   
5. Assess environmental risks: Climate control, disaster zones, backup site planning.
   
   
6. Decide proximity strategy: Hands-on vs. remote management.
   
   
7. Calculate ROI: Build a detailed cost/benefit spreadsheet.
   
   
8. Review emerging trends: Micro-fulfillment, sustainability, IoT, analytics.
   
   
9. Tour candidate facilities: Schedule in-person or virtual walkthroughs.
   
   
10. Engage 3PL partners: Request proposals, SLAs, and rate quotes.
    
    
11. Pilot and optimize: Run a test volume, gather data, and fine-tune your network.

By following these comprehensive strategies, you’ll be able to find a good storage 3PL warehouse that balances cost, speed, and resilience, helping your brand scale efficiently and delight customers at every touchpoint. Get started with Shipbots today.