HOW TO OUTSOURCE YOUR WAREHOUSING & DISTRIBUTIONS SERVICES:
Contemplating your warehousing & distribution services is a good problem to have. Typically this means your original business idea is getting traction and you are in a state of growth. To become successful and as profitable as can be, you want your warehousing and distribution services to be as efficient as possible. Hopefully, this blog post will share some valuable options and supply solutions to best develop these customer services.
Whether your small idea has blossomed more than you were prepared for or or this was an expected part of your larger business plan, at some point you will need to create the best possible solution for warehousing and distribution. Because when done right, your marketing message can reach a greater market share than expected and your staff and facilities are not configured efficiently, you run the risk of jeopardizing customer service and need to develop better answers.
Here are some other international shipping strategies that might help your business development:
- Get A No Cost Rate Quote For International Shipping
- Considering Ocean Shipping Services
- International Automobile Shipping Information
5 THINGS TO KNOW ABOUT WAREHOUSING & DISTRIBUTION OUTSOURCING:
As stated above, limited staff and a faster growth rate than expected might leave you in the predicament of fulfilling orders and servicing customers in a way that they expect and in a way that will keep them loyal to return fo another purchase.
Here are the primary reasons to speak with and partner with a reputable and experienced warehouse & distribution service for your growing business:
1. What Exactly Is An Outsources Warehousing & Distribution Service?
Sometimes this service is referred to as a third party logistics provider. This type of organization is an expert and experienced in the storage, then distribution of various types of stock, including your specific product(s). The beauty of these types of organizations is that they are already situated in the storage of paletted goods or even loose goods, depending on your needs. Once orders are places, these specialized companies have the ability to package your goods according to your specifications and see that they are delivered (distributed) in the most efficient manner possible. Your job at this point is to compare companies because those with larger supply capabilities can negotiate better and discounted rates.
2. The Greatest Benefits Of Outsourcing:
Depending on who you ask, you may get some different answers to this question. In our opinion it’s the experience and guidance that provides the greatest benefit of outsourcing your warehousing & distribution operation. You are really setting yourself up to ride the coat tails of an organization that has provided this services for many years an this adds credibility and efficiency to your won international shipping needs. Another primary consideration is that you want to keep your focus on what you do best and trying to leave extended services to a more experienced company saves you time and possibly painful growing pain in an area that shouldn’t demand your main focus. It is part of the art of delegation.
3. When Outsourcing Serves You The Best:
One rule of thumb is simply this… When you have more than one pallet of stock or more than 5 orders per day. You want to avoid running out of stock as your orders start to increase. This can happen when your stock inventory expands and your customer orders contain more items. Keeping your customers happy is simple. It depends on reducing the time between a customer order and the time of delivery. A good outsourcing provider will make it easy for you to monitor inventory in real time and having your outsource partner dispatching an order the same day it’s received.
4. Managing Stock:
Many companies shipping their products overseas are under the misconception that they are looking control when outsourcing this type of service. This does not need to be the case. Your outsourcing service provider should have systems in place that will notify you of changing inventory levels while also providing you real time order reports. This is one of the advantages of partnering with an experienced outsourcing provider.
5. Finding The Right Outsourcing Provider:
The first thing is to realize that there are hundreds of third party logistics providers all over the world. The key is to be able to choose the one that fits your operation the best. Size is important. You always want to partner with an outsourcing provider that is built the best to handle the size of your needs. As you are considering size, don’t forget to take into consideration how quickly you are growing. This comes into play when deciding on the length of the contract you sign. Don’t lock yourself into a company or contract that might restrict the rate of your current growth. Never forget to evaluate a potential provider on flexibility as well.
Here are some other considerations when researching outsourcing your warehousing and distribution needs:
- What does their network of facilities look like and how do they fit your current sales patterns?
- Paperwork experience – Are they equipped to get customs challenges handled easily?
- Domestic transportation needs.
- Security operation and safeguards.
- The level of technology involved providing the reports and information you need on a timely basis.
We provide this type of information on a regular basis. ETC International Freight Systems provides regular blog posts like this one each week. We also encourage you to reach out and ask any questions you have. Warehousing, distribution, international shipping at every level demands flexibility and a partner you can count on in any situation.
Just use the button below to ask a question or even set up a no cost consultation. These are important questions and you need to feel very comfortable at every turn. Let us help you sort through these and many other details.