Distribution Fulfillment Services
Distribution Fulfillment Services - Top 10 Ways Grocery Stores Benefit
Studies have shown that distribution fulfillment services, sometimes referred to as third-party service, have certain advantages to the grocer market. In a recent study, grocers using distribution fulfillment services indicated that the important business factors when choosing to utilize a warehousing company were: responsiveness to service requirements, quality of management, and ethical business practices. Additionally, warehousing solutions such as value-added services and low costs were cited when choosing a warehousing company.
The benefits of using distribution fulfillment services as ranked by manufacturers, wholesalers, and retailers are as follows:
1. The ability to respond to specific logistics and warehousing needs. The flexibility of the warehousing services provided allows the client more responsiveness in their own specific marketplace.
2. Quality of management. Distribution fulfillment services by their very nature of being a specialized warehouse service are highly efficient and well-versed in the rapid, ever-changing warehouse logistics marketplace.
3. Companies also cited the excellent track record of ethical performance as an important criterion when choosing to use a distribution fulfillment service.
4. The ability to provide certain value-added services such as kitting and even light assembly creates the logistical advantage of having products come in already prepared for the marketplace.
5. Costs of warehousing and logistics is decreased by using a distribution fulfillment service. The absence of costs associated with capital expenditures for warehousing space and the procurement of real property is significant.
6. A specialized warehousing company , especially a regional one, is much more versed in the channels of transportation in the market area. This keeps the costs of transporting down as these companies are able to negotiate lower costs based on overall volume.
7. The knowledge of your market brought to bear by the distribution fulfillment service will streamline the flow of the product efficiently and smoothly.
8. The working relationships built with the warehousing and logistics service will add to the functional dynamic of the local business.
9. The warehousing and logistical service assumes some of the associated risk with the warehousing and shipping of perishable goods and the costs thereof.
10. Lastly, the distribution fulfillment service invests in state-of-the-art warehousing technologies. This systemic advantage gives the client unsurpassed technology for a fraction of the costs associated with procuring and implementing an internal system.
Further responses to preferences of the size and scope of the distribution fulfillment service chosen reveal that while national warehousing providers are preferred when a client wants to consolidate services, the warehousing consultants and logistical service providers most often prefer the regional distribution fulfillment service. This is attributed to the aspects of the reported research above. The regional warehousing company is better able to be in touch with the mission of the client, better able to provide flexibility and therefore be more responsive on a real-time basis to the specific requirements of the client.
About TeamDCA: TeamDCA members operate 24.5 million square feet of warehouse space, state-of-the-science systems and decades of experience achieving customer objectives in each regional market. The TeamDCA network of leading edge distribution centers provides a full menu of transportation services at negotiated rates with common carriers strategically located throughout the US. Whether managing inventory, filling orders, or processing returns, TeamDCA links your supply chain to, from and within the warehouse.
I would place quality of management on the top of the list when it comes to utilizing a warehousing company. Your article has several good points that I agree with.
It’s amazing how quality of management plays a big factor. Your article has raised a few good issues. Thanks!
Cost of a warehousing company and logistics decreased? I like the part about negotiating lower costs when transporting.
This is one article that is going into my favorites. We own a mid-sized grocery store in Scranton, PA. This has shed some light on logistics and warehousing.
Responsiveness to service requirements and ethical business practices are sooooo important. It can’t be stressed enough. Thank you for writing this logistics and warehousing article. It is on point.
After reading your article, I have come to the conclusion that I have a lot to learn about logistics and warehousing. This is going to save me an arm and a leg.
Mmmmh. You must have been a fly in our conference room wall. We were just talking about how studies show distribution fulfillment services have benefits for the grocery market. Behind every good company is a good warehousing company.
When you find a good warehousing company, it will automatically add value to your business. Thanks for share this info with us.
I own an organic food store in New York; your distribution fulfillment tips are very helpful. Every grocer should utilize a warehousing company.
Having state-of-the-art warehousing technology is important. You wouldn’t believe how many times I’ve come across companies that haven’t updated their technology since Clinton was in office.