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Knowledge Challenge
A friend thinks you can answer this question about Third-Party Logistics Strategy
You run a $25M revenue DTC brand currently using a 3PL. Annual logistics cost: $4.5M (18% of revenue). You're growing 40%/year and modeling next year at $35M revenue with $6.3M logistics cost. A consultant suggests insourcing fulfillment would drop costs to ~$5M (a 20% reduction) but require $1.8M one-time investment in WMS, lease, equipment. Should you insource?