Industrial Insights - Insource vs Outsource in 2026

Market data chart from Industrial Insights

The Deconstructed Supply Chain

Market data chart from Industrial Insights

Most executives still view outsourcing as a binary switch. You either run the warehouse yourself, or you hand the keys to a 3PL.

After sitting down with Scott Weiss (Maersk), Joe Dunlap (BlueJay Advisors), and Jonathan Briggs (ShipMonk), it became clear that this binary view is at the heart of why so many 3PL relationships struggle.

The modern supply chain is not a single block. It is a stack of distinct layers, each with different risk, capital, and time horizons. The more effective operators heading into 2026 deconstruct the stack and decide, deliberately, which parts belong in-house and which do not.

Here is how that deconstruction is playing out in practice.

Real Estate (The Asset) — Traditional approach: The 3PL leases the building and marks it up. Modern approach: You control the lease. This preserves flexibility and prevents being locked into an operator that no longer fits. As Scott Weiss noted, it allows the footprint to remain stable even if labor or management changes.

Labor (The Variable) — Traditional approach: Hire, train, and carry the liability internally. Modern approach: Outsource labor to the 3PL. Recruiting, retention, safety, and compliance are core competencies for platforms like Maersk and ShipMonk, especially in tight labor markets.

WMS & Automation (The Brains) — Traditional approach: Use the 3PL's systems and robots. Modern approach: Own the tech stack where it matters. Joe Dunlap highlighted a common misalignment: "A 3PL will not underwrite ten-year automation on a three-year contract." When you own the systems, you capture the ROI and retain optionality.

Transportation (The Reach) — Traditional approach: Rely on a single carrier strategy. Modern approach: Leverage network scale. Jonathan Briggs emphasized the power of aggregated volume through virtual carrier networks, while keeping data visibility and control on your side.

Management (The Oversight) — Traditional approach: Set it and forget it. Modern approach: Pay for performance. When real estate and technology are separated, the 3PL's role becomes execution and continuous improvement, not capital recovery. Fees become clearer and incentives align.

The So What?

Market data chart from Industrial Insights

Which parts of your supply chain are truly a competitive advantage, and which are better candidates for outsourcing? Lease rollovers force decisions. The difference is whether those decisions are made intentionally or bundled together out of habit.