NewStream Blog

7 Benefits to Outsourcing Warehousing & Distribution

Thinking about outsourcing your warehousing and distribution? It's a big step, but one through which your business will see big gains.  Here are some reasons why outsourcing can be a cost-saving answer to your supply chain concerns.

Location Suited to Your Network

Location is key to warehousing and distribution. Trust a third party provider to reduce your logistics expenses and increase lead time to customers with its easy access to major highways and airports. Centralized locations, as well as warehousing and distribution centers near or in route to your vendors, distributors or production facilities, can also produce major transportation cost savings.

Flexibility to Expand

Utilizing a third party provider allows you the flexibility you need to scale up and down with seasonality or fluctuations in demand throughout the year without sacrificing cash or customer service.  Through continuous improvement initiatives and process updates, the 3PL will efficiently adjust to meet your fulfillment needs.

Benefit from Their Experience

Take advantage of the third party provider's years of experience and expertise in supply chain management.  Choose a provider with a culture that best fits your business with experience in the services you need.  This will give you more time to focus on your business while simultaneously seeing improvements to on-time delivery, inventory accuracy and other key performance indicators pertinent to your product and customers.

Additional Value-Add Services

In addition to helping you save money through its warehousing and distribution efforts, the 3PL can also provide many value-added services to enhance your supply chain, including kitting, packaging, assembly, inspections, cross-docking and more. By adding these services to your business, you could see additional cost savings in labor, inventory and transportation.

Increase Customer Service

Your customers will see the benefits of outsourcing warehousing and distribution through reduced lead times and an increase to on-time delivery.  Let the third party provider focus on fulfillment while you focus on growing your business. Your customers, and your financials, will thank you.

Significant Cost Savings

Save time and money by outsourcing your warehousing and distribution to a third party provider.  Use your cash to help grow your company and leave warehousing space and infrastructure investments to the 3PL.  Labor, capital, and transportation costs can all be decreased through these outsourcing efforts.

Focus on Your Core Business

Being able to outsource warehousing and distribution to a third party not only frees up cash that can help grow your business, it also lets you redirect your time and energy into your main operations.  Focus on areas where you are skilled and leave the rest up to a third party provider whose core competency is warehousing and distribution.  

Tagged: Warehousing, Supply Chain Management, Distribution

May 1, 2019 2:02:40 PM