With logistics outsourcing, you save logistics dollars
- No capital investment in warehouse facilities, equipment or human resources is required
- Costs associated with storage and handling are well defined and predictable
- Direct matching of storage costs to volume resulting in stable fixed warehouse costs per unit sold
- The investment in new logistics technologies is absorbed by the third party logistics provider and allocated across its client base
With logistics outsourcing, you have reduced logistics risk
- Your distribution system is insulated from labor disputes
- Warehouse safety, worker's compensation and regulatory compliance are not your problem
- Changes in the logistics portion of your business model are easily implemented
With logistics outsourcing, you improve logistics efficiencies
- Logistics and inventory management are the third party logistics provider’s core competencies which result in optimal logistics efficiencies: best warehouse locations, design, practices, equipment, technology, and most important, personnel hiring and training
- Ability to provide an integrated logistics solution customized for the customer
With logistics outsourcing, you achieve flexibility with your business dynamics
- Ability to accommodate seasonal sales and production peaks and dips
- Short term warehouse agreements offer flexibility to deal with temporary, unexpected inventory spikes or to experiment with a new distribution design