If your company moves goods or services from one source to others, you’re doing some form of distribution. It could be a complex distribution channel that goes from raw materials to finished goods and involves multiple channels of producers, suppliers and users. Or, it could be a simple distribution from the source to the final customer.
Whatever the extent of your distribution, it’s important for any business to evaluate whether distribution, including the movement of payment and reverse logistics, should be handled in-house or by a third-party logistics (3PL) provider.
But how do you determine whether or not you need a distributor. These four factors will help you figure it out.
1. Do Your Goods Present Distribution Challenges?
The size, weight, and shape of your goods may require your company to allocate additional resources to distribute them. Likewise, the amount of goods your company needs to distribute also can present challenges throughout the year.
When goods present distribution challenges, it’s always best to use a 3PL equipped to handle them. When choosing the best 3PL firm for your business, be sure to look at its capacity for distribution. It’s a factor that varies among 3PLs and will make a difference in how the logistics provider can meet your needs.
You might want to focus your 3PL search on those with multiple facilities, like Brendamour Warehousing, which as four state-of-the-art distribution facilities.
2. What Are Your Customers’ Needs?
Just as your goods may present challenges, so may the customers you serve. Some may need the goods bundled a certain way. Others may need their orders divided into separate shipments per quarter. Still others may need rush orders to meet seasonal demands.
A 3PL can help you evaluate your customers’ needs and fulfill them quickly. What’s more, a 3PL’s warehouse management system maintains ordering history profiles that trend the needs of your customers so you can better meet them in the future.
3. What Are Your Company’s Distribution Needs?
Besides meeting your customers’ distribution needs, your company also has to meet goals set by stakeholders. For example, if your investors have set a timetable for expansion into other market areas, outsourcing distribution can help meet those goals if your company is short on resources.
Public warehousing and distribution providers specialize in meeting the comprehensive needs of companies, no matter their type or size.
4. What Are Your Short-Term and Long-Term Distribution Goals?
When it comes to market focus, all companies approach it differently. Some do business in certain regions, while others reach out countrywide, or even globally.
If your short-term goals are to start out small and then expand your reach, you might opt to handle distribution in-house. But as your company expands, it might benefit more from the wide range of distribution routes that 3PLs provide.
Public warehousing and distribution services are core activities of third party logistics providers. They provide a means of getting your goods where they need to go that is efficient and cost-effective. And because their systems and processes are flexible, they can scale up as your company’s market reach expands.
Keep in mind, however, that some distribution providers may be limited in their reach. Some may service a certain region or not provide international trade. Others, like Brendamour Warehousing, Distribution & Services, offers local, nationwide, and international distribution services.
In addition, if your company relies on manufacturers in other countries, you need a distributor, like Brendamour Warehousing, that not only handles import and export services, but is also certified as a foreign trade zone.
When determining your need for a distributor, it’s important to consider 3PLs that are capable of achieving both your short- and long-term goals.
When You Need Distribution, Rely on Brendamour
If an evaluation of your company’s distribution needs determines a 3PL to be your best solution, we invite you to contact Brendamour Warehousing, Distribution & Services. We will listen to your needs, evaluate your current processes, and show you how we can meet the needs of your company, its investors, and your customers.