Inventory sitting in warehouses is costing your business big money … from the bricks and mortar to house it; to the interest payments, insurance and taxes to own it; to the risk-related expenses of depreciation and obsolescence; to the opportunities missed due to cash flow limitations.
If your business revolves around the production or sale of products, you will have inventory. The challenge is to manage your supply chain and support your customers in a way that allows you to increase revenue and still remain cost effective.
Warehouse and distribution activities typically represent 25 – 35 percent of overall logistics costs for businesses. If this is not a core competency for your company, the question becomes, “Why build the capability when we can buy it?”
Contract logistics enables businesses to outsource distribution and warehousing solutions and drive value through superior return on your capital, sustained growth, and proactive risk management.
A dynamic marketplace
It’s a world of change for supply chain managers.