Outsourcing warehousing and distribution is something that companies of different sizes and in different markets should take advantage of. Why? It provides companies with the opportunity to increase profits, expand and have longevity. It’s a good strategic move for companies who want to save time and money and capitalize on scalability, with room to focus on the core of their business. Take a look at these specific benefits that outsourcing warehouse and distribution services can provide businesses.
Ideal Location for Company Network
Accessibility is important when it comes to the location of your business and planning for product pickup and distribution. You want your warehousing and distribution center near major highways, ports, and railroads in order to reduce cost and the amount of time for delivery, and third-party providers are often located in these strategic locations. A third-party provider can also reduce your logistics expenses and significantly improve lead time in delivering products to customers by handling shipping regulations that constantly changes and tracking lost shipments. Rather than having to manage your own shipment center, outsourcing warehousing and distribution allows you to focus on other aspects of your business.
Flexibility That Supports Expansion
Outsourcing warehousing and distribution to a third-party provider grant you the flexibility in the supply chain, the transportation network, and warehouse operations. As business demands shift, which is common, you have the flexibility to scale your distribution model up or down and adjust to meet fulfillment needs. If inventory needs to be reduced or increased, your third-party provider will do that and, in the process, limit carrying costs. You don’t have to worry about driver shortage or fuel costs. Outsourcing allows for the continual streamlining of warehouse operational processes to accommodate shifts in business demands.
Experience and Expertise
Third-party providers tend to have years of solid experience and expertise in warehousing and distribution. The supply chain management expertise, culture, and services of the chosen provider should be in line with your specific business needs. The goal should be to see improvements in performance indicators, from on-time delivery to inventory accuracy. A reputable fulfillment service provider understands the intricacies of the supply chain and can be useful to you and your business, enhancing your level of service and improving turn-around time.
Considerable Cost Savings
By outsourcing your warehousing and distribution services to a third-party provider, you are saving time and money in a number of key areas. You will see costs associated with labor and transportation, in particular, decrease. The quality of labor and shipping are optimized, removing waste and improving productivity, creating a balance to cost and service level.
If you want to grow your business by redirecting warehousing and distribution to a third party, let Extreme Packing Solutions be your first choice. Extreme Packing Solutions can add value to your business, providing a centralized location for your inventory and optimized shipping and delivery. Superior service is what we offer so that you can see your business expand. Contact us today!