Outsourcing logistics functions to a specialist 3PL provider adds value to your firm by reducing costs and enhancing your supply chain.
Online Distribution acts as a key business partner to more than 180 New Zealand, Australian and multi-national companies. As a result, Online Distribution has enormous economies of scale and bulk buying power - which is passed on as savings to our customers. Not only do you get improved service by outsourcing your storage and logistics, it usually comes with improved stock management and significant cost savings.
When considering outsourcing your logistics function, it pays to consider the following points:
When times are good you run out of storage space - and when times are slow you have too much room! If you have too much storage capacity in your warehouse you are paying for space you do not use. When there is not enough room available your warehouse becomes inefficient. Online Distribution solves these problems by charging its customers only for the storage space they use, when they use it.
Many customers have significant seasonal trends. For two thirds of the year there might be strong demand but over the remaining third it is quiet. Online Distribution costs vary with demand. Online Distribution usually charge per order dispatched and processed; so as your demand reduces, so do your costs.
Positioning your product closer to the market provides shorter lead times and allows for greater customer satisfaction and reduced transportation costs. Online Distribution can position your inventory in strategic locations such as Christchurch, Wellington, Auckland and Sydney.
Minimise your fixed costs by allowing Online Distribution to manage all or part of your logistics. Facility associated costs such as rent, forklift and racking can be eliminated by paying only for what you use. Labour costs can be reduced by eliminating downtime. Online Distribution has experienced staff and can transfer labour between 11 of its distribution centres to ensure labour costs remain low. Online Distribution Services has employees with skills in various areas from accounts, customer service, logistics and inventory managers to labour and distribution staff. Freight costs will also be reduced by using Online Distribution's bulk buying power to purchase freight for significantly less than you might currently be paying.
Flexibility and added services
There are many logistical solutions Online Distribution can offer potential clients that they do not currently provide or manage. From KPI management to contact centre capabilities and web order fulfilment, Online Distribution can open the door to opportunities you may never have considered. Just talk to our team.
Want to know more? Just talk to our NZ logistics experts