Why Should I Outsource My Inventory?
By Daniel Lowrey
TDaniel Lowrey
here are four main reasons why a business should consider outsourcing its receiving, delivery, inventory and general logistics processes.
I want to save money
This is the most obvious reason to use a third party logistics (3PL) organization. If someone else can perform an integral part of your business for you and do it cheaper you'll not only be saving money but time. Companies most often name lower costs as the chief reason to turn to a 3PL provider. There are several areas where costs are eliminated and efficiencies created:
* No need for a warehouse to store goods
* No need for forklifts and warehouse/inventory management systems
* Seasonality or volume spikes and dips become more manageable
* Staffing and human resource cost are reduced
I want to do it better, faster and smarter.
When you outsource your distribution and order fulfillment all of a sudden you have an expert on your team who possesses the experience and the resources not only to do it better, but cheaper. If your primary business isn't managing inventory, picking and packing, or fulfilling and processing orders, why not outsource to someone who performs those tasks as their primary focus? Not only are costs reduced, but the level of customer service is increased.
I can't keep up with the technological Joneses
It's difficult to keep pace with the daily technology changes in today's distribution and order fulfillment world. At its base, real-time visibility in inventory and order status should be standard. A quality 3PL uses cutting-edge technology to reduce costs and streamline the order fulfillment process, but more importantly, maintains an edge on changing technological demands.
I want to focus on what I do best
Companies who outsource their logistics are significantly better equipped to focus their efforts on activities in alignment with their core competencies. Simply put, outsourcing allows everyone to focus on what they do best.
Would your organization benefit from a more cost effective outsourced logistics partnership? Contact New School for a free comprehensive review of your order fulfillment, shipping and distribution needs. Let us review your logistics strategy to see how we can help ... we're confident that our logistics experience and expertise will save you money and improve your business.
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