The current economic situation could push more businesses to consider outsourcing their logistics and distribution functions in future in order to cut costs. This is the view of third party logistics service provider (3PLS), PDS International, based in North West England.
However, if 3PLS are to reap the benefits of such a move they need to ensure they can deliver on service.
PDS International's commercial director David McClelland says: "With the economic situation as it is, many companies are weighing up ways to save money and cut costs. Outsourcing their logistics function is one way of doing that - providing they choose a 3PLS which adds value to the whole operation. Companies are constantly looking at margins and evaluating costs - and this is one solution that may be considered."
Using an experienced 3PLS offers businesses a one stop shop option, cutting costs, streamlining processes and increasing flexibility. And if the 3PLS offers additional services, it can become a very attractive option.
PDS International offers reworks, packing and QA checks for example - breaking down large consignments into smaller personalised orders for specific customers. Having been involved in the industry for nearly 15 years it understands and has relationships with all the major retailers.
Its weekly "ship to" list includes Argos, Makro, Costco, Superdrug, Amazon, Matalan, John Lewis, TK Maxx, Tesco, Asda, Sainsburys and Morrisons, and a new contract, to start in April, will add almost a thousand Boots stores to these. The company also delivers to smaller local independent retailers and electrical outlets such as Comet, Curry's, Dixons and B&Q as well as offering a mail order fulfilment service.
David McClelland said: "Outsourcing has many advantages for businesses - and cost savings can be significant depending on the size of the operation. It means businesses do not have to own, maintain and staff their own warehousing and transport facilities. They can also achieve increased efficiencies through flexible storage costs based on actual stock levels and can benefit from their provider's best practice and investment in technology."
He added: "With the economic downturn starting to bite, there has never been a better time for businesses to look at their logistics and distribution functions and see if outsourcing is the best option to maintain profitability and ensure business success."