Helping a Plastic Packaging Supplier Compare 3PL Costs and Plan Scalable Pallet Storage

A plastic packaging supplier approached CSG 3PL while reviewing its current warehouse and 3PL cost structure. The client supplied plastic pails, barrels, drums, cartridges and related packaging products that required pallet-based storage, regular pallet movements and reliable warehouse handling.

With resin prices putting pressure on margins, the client needed a clearer way to compare its existing 3PL costs against a more transparent storage and handling model. Instead of asking the client to prepare a full year of data upfront, CSG 3PL recommended starting with a recent 3PL invoice and breaking down the actual charge items first.

This gave the client a practical view of weekly warehouse costs, pallet handling requirements and future storage capacity before committing time to a larger annual review.review.

The Challenge

Rising material costs made warehouse efficiency more important than ever

For this plastic packaging supplier, warehouse cost was not just an operational expense. It directly affected their ability to stay competitive.
Their products take up space, move mainly by pallet and require reliable storage planning. At the same time, resin price increases were already putting pressure on product margins. If 3PL fees, pallet storage, inbound handling, outbound handling and order processing were not clear, the business would be squeezed from both sides.
Before working with CSG, the client needed clearer answers to several practical questions:

1. Where exactly were their warehouse and logistics costs going?
2. Could their 3PL costs be planned more clearly?
3. Could their inventory be tracked more transparently?
4. Could their storage capacity grow from 3K toward 6K without disrupting operations?
5. Could they spend less time warehouse management and more time growing sales?

The client was not simply looking for a cheaper warehouse. They wanted a backend operation they could trust.

CSG’s 3PL Solution

Customized Warehouse Cost Model Based on the Client’s Actual Operational Situation

CSG does not offer customers a generic warehouse quote.
Instead, CSG’s warehousing solutions team reviewed the client’s actual operational needs and developed a clearer cost model around how their products are stored, processed, and moved.
The plan focuses on the most critical cost and operational areas for plastic packaging suppliers:

• Pallet-based storage planning
• Handling of regular and extra-large pallets
• Inbound Pallet Receiving
• Outbound pallet movement
• Order processing
• Labeling and Warehousing Handling Requirements
• Storage capacity planning
• Inventory visibility is achieved through CSG’s WMS system.

This allows customers to fully understand the CSG partnership model without having to decipher unclear or bundled third-party logistics costs.

For customers, this is one of the most valuable parts of the entire process. They can clearly see where warehousing and logistics costs are going, understand which costs are controllable, and make more confident decisions based on structured models rather than guesswork.

What CSG Delivered
A Clearer Cost Model, Scalable Storage and Full Inventory Visibility

Cost Clarity

Protecting Margins When Resin Prices Rise

Our warehouse solutions team built a clearer cost model around the client’s actual storage, pallet movement, order processing and handling requirements. Instead of working from a general 3PL quote, the client could see how their warehouse costs were structured and where savings could be made.
In the first quarter of working together, CSG helped the client save AUD $8,000 in warehouse and logistics costs.

WMS Inventory Visibility

Turning Warehouse Data Into Better Business Planning

Through CSG’s WMS system, the client gained a live view of stock levels, inbound products, outbound movements and daily dispatch activity. This gave their team a much clearer understanding of what was happening in the warehouse every day.
With clearer inventory data, they could plan purchasing, stock allocation and sales activity with more confidence.

Scalable Storage

From 3k Storage Needs to a 6k Growth Pathway

CSG reviewed the client’s product type, pallet movement requirements and future capacity needs, then provided a scalable storage pathway toward 6K as additional space became available.
This gave the client confidence that their warehouse setup could grow with the business, without creating another operational bottleneck.

Why 3PL is Crucial for Plastic Packaging and Industrial Products Companies

The logistical challenges faced by plastic packaging suppliers typically differ from those of typical online retail brands. Their products are often bulky, require pallet stacking, and have significant space requirements. Furthermore, fluctuations in raw material prices can impact their profit margins, making visibility into warehouse costs particularly crucial.

For businesses selling plastic buckets, cans, cylinders, or similar industrial packaging products, a transparent third-party logistics model can help reduce uncertainty in storage, inbound processing, outbound pallet movement, and order processing.

CSG 3PL supports these businesses by helping them review their existing cost structures, understand future storage needs, and develop more scalable warehouse plans before embarking on a full transformation.

Need a clearer view of your current 3PL costs?

Send CSG 3PL a recent warehouse or 3PL invoice and our team can help compare storage, pallet handling and order processing charges against a more transparent cost model.