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Benefits of Using Distribution Centers

The larger your business and customer base become, the harder it can be to manage the multifaceted components that make up your supply chain. Goods and products may need to move between several locations or come from several different storage facilities before they reach consumers, and a problem with any individual link in that chain could have disastrous consequences for your business.

Establishing an efficient and comprehensive inventory management system is essential in the supply chain industry, and one of the best ways to achieve that is by building your business around one or more distribution centers. To start enjoying the benefits of using distribution centers as part of your supply chain, consider working with a dedicated 3PL provider like Brown West Logistics.

Reducing Long-Term Costs

While it is true that moving inventory into a distribution center can be costly in the short term, the long-term benefits of this approach far outweigh the initial expenses. Distribution centers are designed to maximize efficiency when it comes to the intake, processing, storage, and distribution of goods, which means less money wasted paying for temporary storage, dealing with stockouts, or losing customers due to delayed or incomplete orders.

On top of that, distribution centers can be used to store larger quantities of goods for longer amounts of time, allowing you to pay bulk rates for extra goods in advance, rather than scrambling to meet increased demand as it becomes clear. In short, using distribution centers allows you to plan for the future without sacrificing mobility or capacity in the present and can both cut down on costs and boost revenue.

Centralizing the Order Fulfillment Process

Another benefit to using distribution centers is the simplification of fulfilling large orders with numerous different products. If different goods are stored in different places, combining them all into a single order can require a massive transportation network, communication across multiple storage facilities, and a host of opportunities for a single procedural flaw or mistake to delay an order and leave customers dissatisfied.

With all your orders for a geographic area flowing through a central distribution center, all of those issues become a thing of the past. Order picking and inventory tracking can occur entirely within one facility or within a streamlined network of interconnected locations, dramatically reducing the number of pain points in your shipping and delivery logistics.

Maximizing Business Growth Potential

Of course, decreasing overhead costs and allowing for more efficient execution of your business goals are both great benefits that come with using distribution centers, but perhaps the most important advantage of this approach is the weight it takes off your shoulders as a manager or owner. Instead of spending your time ironing out kinks in your supply chain and chasing small improvements in a fundamentally inefficient system, you could focus on running and growing your business while knowing that your supply chain is in good hands.

You are just one part of your supply chain, and you should not have to spread your best efforts across multiple other parts of that chain just to keep your business afloat. A qualified 3PL provider could take the pressure off you and bring creative problem-solving and ingenuity to every part of the supply chain at once, leaving you to the all-important task of delivering the best possible experience to your customers. Reach out to learn more.