The Location of Your 3PL Could be Costing You a Fortune
In today’s hyper-competitive consumer packaged goods (CPG) landscape, efficiency in logistics is not just an operational advantage—it’s a strategic necessity. Brands are constantly seeking ways to reduce costs, improve shipping speed, and adapt to a growing number of sales channels. One of the most overlooked strategic decisions is where to store and ship products.
For many CPG brands, the answer is clear: partnering with a third-party logistics (3PL) provider in the Midwest.
Here’s why a Midwest-based 3PL can be a game-changer for your supply chain:
1. Central Location = Lower Shipping Costs
The Midwest—home to cities like Chicago, Indianapolis, and Columbus—is geographically central to the continental U.S. This centrality dramatically reduces the average shipping zone for parcel and LTL (less-than-truckload) shipments.
Lower average shipping zones = lower shipping rates.
You can reach most U.S. customers in 2-3 business days via ground shipping.
Brands can consolidate inventory in a single facility without sacrificing national reach.
For brands selling through multiple online platforms (Amazon, Shopify, etc.), cutting a zone or two off your average shipment can mean major savings across thousands of orders.
2. Faster Delivery Times Nationwide
A Midwest location means faster ground shipping to both coasts. Consumers now expect 2-day or even same-day shipping regardless of their location. With a 3PL in the Midwest, your brand is better positioned to meet those expectations without paying for expensive air freight.
Serve customers in New York and Los Angeles from a single fulfillment center.
Achieve 1-2 day ground coverage to 70-80% of the U.S. population.
3. Scalability Across Channels
Many Midwest 3PLs—especially those focused on CPG—are built to handle omnichannel fulfillment, including:
Direct-to-consumer (DTC)
Amazon FBA replenishment
Wholesale and retail distribution
Club stores, distributors, and more
This flexibility means you don’t need separate partners for each channel. As your business grows, a Midwest 3PL can scale with you—whether that’s shipping pallets to Whole Foods or individual orders to online customers.
4. Access to Key Transportation Hubs
The Midwest is a logistics powerhouse. Chicago, in particular, is one of the largest freight hubs in North America, offering:
Dense rail and highway infrastructure
Major parcel carrier hubs (UPS, FedEx, USPS)
Proximity to national intermodal networks
This translates into more reliable and cost-effective transportation options—both inbound from your manufacturers and outbound to your customers.
5. Better Inventory Efficiency
For brands using copackers located on the West or East Coast, it may seem logical to use a nearby 3PL to minimize freight costs. But this strategy often leads to higher downstream shipping costs when fulfilling orders nationwide.
Instead, many smart brands freight inventory in bulk to the Midwest—once—and then ship smaller, lower-cost parcel or LTL orders nationwide.
Freight in bulk = lower cost per unit
Fulfill closer to your customers = lower parcel spend
Result: total landed cost per order goes down