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The Advantages of Outsourced Pick and Pack Distribution

Friday, February 7th, 2014

Efficiency is at the core of our business. Anyone in supply chain management knows that maintaining a streamlined supply chain is imperative for the successful operation of any business. From the customer’s perspective, most of that success hinges on the last (and often, most tedious) leg of the supply chain: product distribution.

Recently, retailers and logistics companies alike were faced with a new distribution challenge. As online shopping grew in popularity, retailers were increasingly responsible for shipping their products directly to consumers, not stores. As a result, the industry had to find the best way to ship a high volume of small orders quickly and inexpensively. The answer? Pick and pack distribution.

Pick and pack is exactly what it sounds like. Retailers store products in bulk cases or pallets in a pick and pack warehouse. When an online order is received, it’s processed through the warehouse’s inventory software, which generates a list of the products to be shipped. Then, workers pick these items from the retailer’s on site stock, pack them up and ship them off.

Why would a company take advantage of pick and pack services?

Unless you’re a retail behemoth like Amazon, operating your own pick and pack operation can be very costly and time consuming. Outsourcing to a warehouse eliminates the need for individual businesses to invest in or maintain their own warehouse space (and the workforce to manage it). With the help of an outside logistics specialist, you can focus on your core competencies without the additional stress of managing every moving part of your own supply chain. Using sophisticated inventory management software, a company like CWI Logistics can keep a constant eye on stock levels and guarantee prompt delivery to your customers.

Pick and pack services are especially advantageous for smaller companies. Large warehouses receive more comfortable shipping rates because of their high volume of orders. They also have their own customer service teams who specialize in shipping. So if you’re running a small business, a third party pick and pack service can allow you to offer the same level of service, security and shipping speed as a larger competitor.

Ultimately, pick and pack services help ensure that customers receive their orders intact and on time. And since how your product arrives can determine how much trust your customers place in your company, choosing a responsible, hardworking warehousing company can be one of the most important business decisions you make.

Commercial Warehousing