Total Cost of Service: BJ Patterson on Why Storage Cost Is the Wrong Number, Chargebacks, and How to Select a 3PL | Supply Chain Saga Ep. 021 from Supply Chain Saga

Supply Chain Saga

Mark Taylor

Total Cost of Service: BJ Patterson on Why Storage Cost Is the Wrong Number, Chargebacks, and How to Select a 3PL | Supply Chain Saga Ep. 021

1 hour 25 minutes Posted May 12, 2026 at 8:00 pm.

— Opening: BJ Patterson Returns to Supply Chain Saga

— State of Logistics: "Chaos Is Probably the Operative Word"

— Trucking: End of the Four-Year Freight Recession and CDL Enforcement

— Warehousing: COVID Hangover, Excess Capacity, and Record Vacancy

— Housing Starts as the Leading Indicator for Warehousing Demand

— Brick and Mortar Resilience: Shopping as a Social Activity

— Small Box vs Mid-Size Warehousing and the Amazon Effect

— The Death of Peak Season: "Not Even a Molehill"

— Social Media Impact on Brands and 3PL Operations

— Southern California Lease Rates During COVID and the Fleeing Effect

— Workforce Productivity: Phoenix Labor Half as Productive as the Inland Empire

— Breaking Down Total Cost of Service: Drayage to Outbound

— Why 40% of US Imports Come Through Long Beach and LA

— Retail Compliance Explained: Routing Guides, Labels, and Automation

— Chargebacks: Punitive by Nature

— Client Case Study: $400K in Chargebacks Reduced to $11K

— The TSA Analogy: "Just Take Your Damn Shoes Off"

— How to Select a Good 3PL: The Questions Nobody Asks

— Tribal Knowledge vs Systematically Embedded Processes

— Primary, Secondary, and Tertiary Distribution Markets

— Single-Point vs Multi-Location Distribution

— The Supply Pipe Revisited: Inventory as Money in Transit

— Walk the Warehouse: "It Takes Five Minutes to Know"

— "We Only Get Paid to Do It Once"

— The Kama Sutra Cookbook Story: Why Mispicks Matter

— Closing: The KISS Principle and 3PL as True Partner

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Show notes

BJ is founder and CEO of Pacific Mountain Logistics, a full-service 3PL in San Bernardino, California, with 30+ years in warehousing. Recorded April 2026, BJ and Mark cover the state of freight, warehousing, and tariffs — then pivot into a masterclass on total cost of service and what brands should ask when evaluating a 3PL. TOPICS COVERED: - 2026 logistics: ocean freight chaos, tariffs, and the end of the trucking freight recession - CDL enfor...

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