A DISTRIBUTION TEMPLATE FOR SUCCESS
A shared distribution environment can be a dynamic solution that can bring logistics efficiency quickly to your supply chain. In many cases, handling your warehousing and distribution services may be too costly and it’s not really your core business offering. By outsourcing your supply chain to a 3PL, you can reduce your costs, impact your efficiency and ultimately improve satisfaction to your customer.
So, what are the benefits of a 3PL shared distribution environment?
FLEXIBILITY | If your business has seasonal peaks or valleys, labor management can be difficult for in-house operations. However, a 3PL partner has the capabilities of changing their labor up and down as activity fluctuates. The volume swings can also impact your space needs. These shifts, again, are no problem for a 3PL with a multi-client environment.
COMMITMENT | In many cases it’s difficult to make long-term commitments when the supply chain can be a volatile environment. Your commitment to a 3PL relationship can be long-term or a 30-day contract. This allows you to shift your business differently if its required.
LEVERAGE ASSETS | Since a 3PL has many clients in the distribution center, they are able to leverage handling equipment, storage equipment and even facilities. Whereas if your organization invested in these assets, you may not get the utilization to be cost effective.
SHARE COMMONLY | In a shared environment, you have no dedicated resources unless you request them. So all overhead and leadership costs are shared and allocated amongst all clients in the facility.
EXPERTISE | Since there are a wide variety of clients in a 3PL shared facility, the 3PL leadership and associates become knowledgeable on industries, processes and compliance requirements. This experience and expertise can be used for your business and brings value to your supply chain.
These benefits of a shared distribution environment can positively impact the efficiency of your supply chain network. Are you interested in learning more about a shared distribution environment?