3PL vs. In-House Fulfillment: Which Model Fits Your Growing E-commerce Business
Katherine Wroth • October 28, 2024
As your e-commerce or omnichannel business expands, regular reviews of your fulfillment logistics strategy will be necessary. The right fulfillment model can streamline operations, improve customer satisfaction and boost profitability—but the wrong one can create bottlenecks and added costs. Here’s a guide to help you evaluate which model suits your business best and align your fulfillment strategy with your goals.
What Is 3PL Fulfillment?
Third-party logistics providers (3PLs) offer businesses end-to-end supply chain solutions by managing your warehousing, picking and packing, shipping and often customer returns. If your company has complex logistics needs or is experiencing rapid growth, outsourcing to a 3PL partner can bring scalable expert support that helps you maintain high-quality service.
Benefits of 3PL Fulfillment:
- Scalability and Flexibility: 3PLs adapt to your business’ changing needs, expanding your capacity during peak seasons or scaling back during slower periods.
- Advanced Technology and Expertise: The top 3PL providers use cutting-edge logistics technology and possess deep industry expertise, helping businesses stay efficient without heavy tech investment.
- Focus on Core Competencies: Freeing your team from logistical complexities allows them to prioritize core business activities like product development and marketing.
Potential Drawbacks of 3PL:
- Less Control: Relying on a third party means losing some operational oversight, which can concern companies with unique handling requirements or customer service standards.
- Integration Challenges: Synchronizing a 3PL’s technology and processes with your own can pose initial challenges, requiring setup time and communication alignment. At Barrett, our IT experts work closely with your team to address compatibility issues from day one. We optimize data flow and establish reliable processes, so your operations remain uninterrupted and efficient.
What Is In-House Fulfillment?
In-house fulfillment involves handling all logistics activities within your organization. You retain full control over inventory, warehousing and order processing. Companies with predictable demand and more specialized handling needs or those who want to maintain complete oversight of their operations often choose in-house fulfillment.
Benefits of In-House Fulfillment:
- Total Control: In-house operations mean businesses retain oversight on every fulfillment aspect, from packing to shipping.
- Brand Experience: For brands focused on delivering a unique hands-on experience to customers, in-house fulfillment allows customization that may be harder to achieve through a 3PL. At Barrett, we offer tailored solutions that mirror the high-touch experience you aim to deliver. From customized packaging to personalized handling, Barrett ensures that every step reflects your brand’s standards and creates memorable customer experiences.
- Data Ownership: Companies handling fulfillment internally have direct access to fulfillment data, enabling real-time adjustments and insights.
Potential Drawbacks of In-House Fulfillment:
- High Operational Costs: Renting space, hiring staff and investing in logistics tech add up. Overhead costs can escalate as demand grows, especially without economies of scale.
- Resource Intensive: Managing an in-house fulfillment team and process diverts significant resources from other business areas, making it challenging for smaller teams.
- Scalability Limitations: Scaling in-house fulfillment to match high-volume periods such as holiday seasons can strain resources and lead to delays.
Deciding Factors: When to Choose 3PL vs. In-House Fulfillment
While both models have their merits, a few deciding factors can help guide you:
- Volume and Demand Fluctuations
If your business experiences seasonal spikes or fluctuating order volumes, a 3PL can offer flexible support without requiring additional space or staff. - Budget Constraints
3PLs often require less upfront capital than establishing an in-house operation. With a 3PL, costs are variable based on usage, while in-house expenses are primarily fixed. - Control Requirements
In-house fulfillment may offer the best solution for companies that need total control to deliver a specific brand experience or meet unique handling requirements. However, it’s important to note that 3PLs like Barrett offer personalization and VAS services. - Growth Goals
Rapidly growing companies benefit from 3PL's scalability, which provides the infrastructure to expand into new regions or handle increased order volumes without the stress of constant reinvestment.
Making the Right Decision
The choice between 3PL and in-house fulfillment ultimately depends on your business's needs, resources and goals. At Barrett Distribution, we see firsthand how the right logistics partnership can elevate a company, whether it’s through efficiency, customer experience or sheer operational power. Consider your long-term vision and how each model aligns with your strategy. You can choose a fulfillment model that drives your success by evaluating these factors.
Whether you're looking to outsource or improve your in-house capabilities, the key is understanding your priorities and selecting a solution that aligns with your growth trajectory.
锘�Reach out to Barrett for a deeper insight into how we can support your fulfillment journey.
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If you’re evaluating third-party logistics (3PL) partners, the #1 tip is simple: Go on-site. A site visit will tell you more in 15 minutes than any sales presentation ever will — and it can save you months of operational pain down the road. While on-site, here are the top three things you should be doing: 1. Meet the people doing the work Start with the people — not the slides. Meet the operators on the floor Talk to the warehouse managers Ask questions directly to the people picking, packing, and shipping orders You’ll learn quickly whether the team truly understands the operation or is just following a script. A strong 3PL isn’t just systems and software — it’s experienced people who care about execution. Bonus tip: Spend time with the general manager . Their visibility, accountability, and involvement matter more than most brands realize. 2. Pay attention to cleanliness and organization This one is underrated — and incredibly telling. Are aisles clearly marked? Is inventory organized and easy to locate? Are workstations clean and efficient? Pro tip: Check the bathrooms 馃憖 If shared spaces are clean and well-maintained, chances are the same standards apply to inventory, orders, and overall service. 3. Watch how orders actually move through the building Don’t just ask how fulfillment works — watch it happen . How do orders flow from receiving to storage to pick, pack, and ship? Are there bottlenecks? Is automation helping or slowing things down? Do employees seem confident in the process? This is where reality separates itself from the pitch deck. What looks great on paper can fall apart in motion, and a live walkthrough makes that obvious fast. Why a site visit matters more than any deck A 3PL can show you metrics, technology screenshots, and polished case studies. But only a site visit shows you: Culture Execution Attention to detail How issues are handled in real time That firsthand perspective can prevent misalignment, missed expectations, and painful transitions after go-live. The bottom line If you’re choosing a 3PL partner, don’t skip this step. Go on-site. Meet the people. Watch the operation. It’s the fastest way to validate your decision — and one of the smartest moves you can make before signing a contract. Interested in booking a visit to one of Barrett's facilities? Contact us to schedule your free peak season audit here.
Warehouse automation isn’t new, but determining when it actually makes sense is where most companies struggle. Recorded live at WERC 2025 in New Orleans, this conversation brings together leaders directly involved in real-world warehouse automation decisions. Kevin Lawson interviews Chris Lingenfelter , founder of Robot Advisors, and our very own Tim Barrett , CEO of Barrett Distribution Centers. They sit down for a practical discussion on robotics, drones, and the hype surrounding automation. The focus stays on what actually matters: cost per unit, operational fit, employee experience, and ROI. If you’re evaluating warehouse automation or wondering why past investments haven’t delivered, this breakdown offers practical, experience-backed insights. Why Barrett took a robot-agnostic approach One of the most important takeaways from the WERC session: there is no one-size-fits-all robot. Barrett was an early adopter of autonomous mobile robots (AMRs), including systems from Locus Robotics and Six River Systems. But instead of standardizing on one solution, the company evaluates automation based on: SKU count and product size Order profiles and velocity Facility layout Customer growth expectations A footwear operation with serialized inventory has very different needs than an apparel fulfillment center, and Barrett treats them that way. The result: better outcomes for customers and lower long-term operational risk. Inventory drones: the unexpected game changer While AMRs get the spotlight, Barrett’s biggest automation win came from inventory drones. Using drone-based cycle counting, Barrett increased inventory count frequency by more than 7x while significantly reducing labor costs. For high-accuracy environments, especially serialized footwear inventory, this technology proved essential. The impact went beyond numbers: Higher inventory accuracy Faster exception resolution Better employee roles focused on analysis instead of manual counting In short, automation didn’t eliminate jobs. It made them better. How Barrett really thinks about ROI ROI isn’t ignored, but it isn’t the only metric. Barrett evaluates automation using cost per unit shipped rather than chasing flashy payback models. Capital investments are amortized based on contract life and redeployment potential, then layered with labor and operating costs. The guiding question is simple: Which solution produces the lowest sustainable cost per unit? That approach keeps decision-making grounded and aligned with customer outcomes, not tech hype. “To bot or not” starts with a baseline Chris Lingenfelter, founder of Robot Advisors, reinforced a critical point during the session: You can’t evaluate automation if you don’t understand how your warehouse operates today. Many companies struggle to answer basic questions: What does each unit really cost to ship? Where are labor inefficiencies hiding? Which processes are already working well? Before recommending automation, Robot Advisors helps operators establish a true baseline, then compare technologies objectively. Sometimes, the right answer isn’t robotics at all. That honesty matters. Automation as a competitive advantage for 3PLs For Barrett, automation isn’t just an operational tool. It’s a competitive differentiator. When engaging new prospects, the team often presents: Multiple automation paths Clear tradeoffs between solutions A data-backed rationale for each option That depth of analysis resonates with COOs and CFOs evaluating long-term fulfillment partners. It signals preparedness, transparency, and experience, not guesswork. The workforce question: what changes, what doesn’t As robotics adoption increases, warehouse roles are evolving. At Barrett, automation shifted labor away from repetitive tasks and toward: Exception management System oversight Data analysis Engineering and IT support Over time, this required growing centralized IT and engineering teams, a necessary investment to support advanced operations across multiple facilities. The takeaway from WERC 2025 was clear: automation changes work. It doesn’t eliminate the need for people. Thinking about automation, but not sure where to start? Contact us now for a free supply chain consultation.
FOR IMMEDIATE RELEASE Franklin, MA — Barrett Distribution Centers , a leading third-party logistics provider recognized for its expertise in eCommerce and omnichannel fulfillment, is proud to announce a new partnership with Maxwood Furniture to support its Western US DTC fulfillment operations. The partnership marks a significant milestone for Maxwood as the company continues to scale its nationwide distribution strategy. Maxwood Furniture is a global manufacturer of precision-engineered wood furniture with more than 20 years in the market. The company offers several distinct brands and product lines that ship from its US-based distribution centers or directly from its 1.3 million-square-foot factory in Vietnam. Maxwood serves retailers, design and procurement firms, hotel groups and turnkey project companies around the world. “We walked away from our visit to Barrett’s Montebello operations genuinely impressed with the visibility their systems provide,” said Heidi Germann , senior manager of operations at Maxwood. “Their integration, reporting and thoughtful approach to network design really stood out. Barrett’s geographic footprint fits where we’re headed and their team’s thoroughness helped us determine the best transition path.” After the initial transition, Barrett will begin planning a Dallas warehouse location to support Maxwood’s continued growth. “We are excited to partner with the Maxwood Furniture brand and team,” said Mark Healy , vice president of customer solutions at Barrett. “Our companies are aligned culturally and operationally, which creates a powerful combination to support Maxwood’s market-leading growth initiatives.” The launch is scheduled for mid December with outbound DTC order processing beginning shortly after. About Maxwood Furniture: Maxwood Furniture is a family-owned and operated import and wholesale business that designs, manufactures, and distributes solid wood furniture products across North America and around the globe. Our products are meticulously engineered in our fully accredited factory to meet or exceed US & EU safety standards. We manufacture using the latest equipment & best materials, including industrial-grade hardware, to create products that are made to last. Our customers range from designers to small independent & large retailers such as Rooms to Go, Jordan’s Furniture, and Bernie & Phyl’s. About Barrett Distribution Centers Since 1941, Barrett has provided customized third-party logistics (3PL), direct-to-consumer (DTC) eCommerce fulfillment, omnichannel distribution, managed transportation solutions and retail compliance for clients across all industries, with a focus on apparel & footwear, health & beauty, consumer packaged goods (CPG) and education. Barrett continues to be a leading 3rd party logistics provider in North America, known for superior execution, customer engagement and direct access to senior leadership decision makers. As a member of Inc's fastest growing companies list 15+ times, Barrett is big enough to do the job and still small enough to deeply care about your business. Brands interested in a new 3PL partnership may contact Barrett directly here . Official Release Here
