How 3PL Works
Outsourcing logistics functions to a third party supplier. Specialist 3PL providers can add value to your firm through decreased logistics costs and improved service offerings.
Online Distribution Services act as key business partners to over 120 New Zealand, Australian and multi-national companies. As a result Online Distribution Services 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:
Space requirements
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 area you do not use. When there is not enough room your warehouse becomes inefficient. Online Distribution Services solves this problem by charging its customers only for what storage they use when they use it.
Seasonal demand
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 Services costs vary with demand. Online Distribution Services usually charge per order dispatched and processed, so as your demand decreases so do your costs
Positioning
Positioning your product closer to the market provides shorter lead times and allows for greater customer satisfaction and reduced transportation costs. Online Distribution Services can position your inventory in strategic locations such as Christchurch, Wellington, Auckland and Sydney.
Costs
Minimise your fixed costs by allowing Online Distribution Services to manage all or part of your logistics. Facility associated costs such as rent, forklift and racking costs can be eliminated by paying for what you use. Labour costs can be reduced by eliminating downtime. Online Distribution Services has experienced staff and can transfer labour between 11 of its distribution centres to ensure labour costs remain low. Online Distribution Services have employees with skills in various areas from Accounts, Customer Service, Logistics and Inventory Managers to Labourers, Distribution and Casual Staff. Freight costs may also be reduced by using Online Distribution Services bulk buying power to purchase freight for significantly less than you might currently be paying.
Flexibility and Added Services
There are often many logistical solutions Online Distribution Services can offer potential clients that they do not currently provide or manage. From KPI management to contact centre capabilities and web order fulfillment, Online Distribution Services can open the door to opportunities you may never have considered.
So go ahead and see how Online Distribution Services has helped out their customers by reading some case studies or hear from them in our testimonials. Alternatively you may like to talk to one of our team by clicking here for contact details.
