What size warehouse will your business need in 3 years? 5 years?
Like so many businesses these days, you are probably enjoying the benefits of using “on-demand” software platforms like Xero. In the same vein, shouldn’t you be thinking the same way about your inventory management and warehouse requirement?
Most of the benefits of outsourcing your accounting or CRM packages can also be applied to outsourcing your inventory management and fulfilment functions – a lower cost of entry, scalability and integration, pay as you go, flexibility, security and value added services.
So, as with on-demand software, an outsourcing option exists for your pick-pack, storage and fulfilment requirements.
More and more businesses, including start-ups, are choosing to leverage off the fixed assets and huge economies of scale provided by an outsourced 3PL provider. Our highly respected and experienced 3PL Online Distribution has been delivering these services and their associated benefits to businesses for over 30 years.
Fluctuating space requirements
When business is booming, you run out of storage space – this becomes inefficient in terms of stock handling and can create increased risks for staff. When times are slower, you have excess space – this is wasteful and costly. Online Distribution eliminates this for you by charging only for the storage space used at any given time.
Seasonal demand
You will likely have an element of seasonality to your sales. These may be significant i.e. for two-thirds of the year there might be strong demand for your product but over the remaining one-third, demand slows. Online Distribution can simplify this with a transparent cost per order, dispatched and processed. This means that as your demand reduces, so too will your costs.
Market position
Positioning your product closer to the market provides shorter lead times and allows for greater customer satisfaction and reduced transportation costs. Online Distribution will position your inventory in strategic locations throughout Auckland, Wellington or Christchurch, or further afield with our global partners.
Reduce costs
With no set up fees, staffing or facility associated costs (such as training, health and safety, rent, equipment or OPEX) you can expect significant savings to service your clients. Freight costs will also be improved by using Online Distribution’s buying power.
Add on services
Online Distribution’s fantastic 120 strong team is highly skilled in many areas. You may wish to engage the team to re-work your product, gift wrap your orders, remove the pain of customer returns, or provide customer services on your behalf. They can also provide you with a serviced office or boardroom, broker your international freight, clear your imported goods, source your product and integrate seamlessly with your multiple sales channels.
By contracting with a 3PL provider such as Online Distribution your business will benefit by functioning in a far more efficient and cost effective way.
Contact Sam Stokes to discuss the ultimate flexible solution for these uncertain times.
