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Why a Small Businesses Needs Distribution Warehousing Services

Tuesday, August 25th, 2015

When your product is in demand, your revenues increase and your company grows. It also means you’ll be increasing inventory, and turning over more products than you’re accustomed to. Soon, you might find yourself unable to keep up with the day-to-day demands of order fulfillment and inventory control. It is a daunting task, even for the most seasoned distributor, but for a beginner, it can spell disaster. Distribution warehousing, on the other hand, offers streamlined services, at reasonable rates, and offer expert advice about supply chain improvements.

Streamlined Services

Setting up and maintaining an efficient distribution warehouse is a monumental undertaking. It requires a great deal of forethought, which means it’s necessary to have experienced people at the helm. A deep understanding of the supply chain, coupled with the latest technologies allows distribution warehouses to manage the process seamlessly. From anticipating seasonal changes to managing the disposal of discontinued products, they control the supply chain so there are minimal delays, and tight control over the inventory at all times.

Reasonable Storage Rates

A distribution warehouse’s rates make it a viable option for even the most cash-strapped companies. Consider the cost of purchasing land and constructing a warehouse, staffing it, and developing all the systems that are necessary to operate it smoothly. It’s not just financial; all of these things take a great deal of time. By contrast, a distribution warehouse service allows small businesses to quickly implement the distribution processes necessary to get their products to market.

Expert 3PL Advice

It’s better to learn from others mistakes than to make them yourself. If you really want to learn about warehouse distribution, or anything else, nothing beats the advice of an expert third party logistics provider. A distribution warehouse is staffed by experienced logistics professionals who understand that their success depends on how well you do. Therefore, it’s in their best interest to develop deep, long-lasting relationships with the companies they partner with. Sharing information, and helping to develop procedures and practices that are beneficial to everyone involved is their top priority.

Instead of investing a huge amount of time and capital into a warehouse with distribution capabilities, smaller companies are wise to consider outsourcing their needs. It’s faster, and more efficient, and doesn’t require a great deal of time to implement. What’s more, it can be either, a short- or long-term solution depending on your specific needs.

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