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Why Outsource Your Distribution and Warehousing?

Saturday, October 26th, 2019

When your strategic decision is to enter a new market, or improve your services within an existing market, you can depend on qualified 3PL’s to manage your distribution with little to no additional capital investment. Specialized partners who distribute locally or regionally can provide a service that dramatically improves your speed to market, customer service, and inventory turns and, when properly managed as a strategic extension of your business model, the results in sales growth may far exceed your expectations.

The benefits of outsourcing your distribution and warehousing needs is ideal if these are not your company’s core competencies. If expertise and dedicated resources are not available to manage an internal or external distribution function, if your business is looking to quickly and/or temporarily enter into a new market to gain a competitive advantage, or if you are a startup company choosing a partner like CWI Logistics can make all the difference.

According to a 3PL study – The State of Logistics Outsourcing, 69 percent of companies surveyed were using 3PLs for warehouse/distribution center management. Almost two thirds of companies surveyed felt the use of 3PLs had a positive impact on client service and nearly 75 percent agreed with the statement “Our use of 3PLs has had a positive impact on business process efficiencies.” In addition to that, almost half were able to measure an ROI from using a 3PL.

For most companies outsourcing warehouse or distribution center operations makes the most sense for the following reasons:

  • Take advantage of the benefits provided from a best-in-class operations
  • Improve your business’s customer fulfillment and distribution services
  • Distribution centers and warehousing services that are closer to ports and clients
  • Operations that are up and running in an expedited way
  • Industry-specific services that require little to no customization
  • Flexibility in managing business and supplier changes
  • The ability to easily and quickly add short or long-term capabilities
  • Flexibility and scalability of third party operations – ability to adjust your distribution and warehousing needs based on demand
  • Respond to strategic business changes quickly with minimal or no capital expense – i.e. change providers or networks or regions
  • Capital cost avoidance and seamless integration of data from 3PL WMS to internal systems for real-time visibility of your inventories and customer service
  • Value-add services (e.g. labeling, bundling, kitting, and other special packaging needs) to meet your specific and changing requirements
  • Lower costs while improving customer service
  • To take advantage of the warehousing company’s “other services” buying powers

If any of these resonate with your business or you have been considering outsourcing your distribution and warehouse needs to a 3PL we hope you’ll consider CWI Logistics.

With logistics from CWI, you’ll get customized warehousing options to fit your needs, warehouse management, flexible distribution centers, value-added services and much more to ensure your supply chain is always at its strongest.

Commercial Warehousing