Why You Should Outsource Your Warehousing and Distribution

When COVID-19 struck, e-commerce sales exploded. As people switched from real to virtual shopping carts, companies of all sizes suddenly found themselves struggling to keep up with the new demand.

The pandemic accelerated the growth of e-commerce by four to six years, according to an Adobe report. Even companies with already-established warehouses.had to pivot to accommodate the surge in online sales.

Luckily, there’s a simple solution for companies that need to efficiently scale their operations. They can outsource their warehousing and distribution.

An Armstrong & Associates report found that 90 percent of domestic Fortune 500 companies outsource part of their supply chain to third-party logistics providers. In Texas, industries ranging from apparel to health and more count on third-party partners to handle the logistics of their warehousing and distribution.

Outsourcing your warehousing and distribution can be your secret weapon. Here are eight reasons why you should partner with a third-party provider:

1. Logistics isn’t your passion.

Let’s face it — you probably didn’t dream of spending all your time on the job in a warehouse. You don’t have time to manage your company while also learning how to be a logistics company. By outsourcing part or all of your warehousing and distribution, you can better manage your time. A partner like Armstrong – Houston can provide everything from asset management to final-mile services for you. Focus on achieving your growth goals, and we’ll take care of the rest.

2. You’re ready for some savings.

When you are handling all warehousing and distribution on your own, the cost adds up quickly. In addition to your capital investments into the basic warehouses and transportation, you also have to pay for full and part-time workers to manage the day-to-day logistics. Investing in a partnership with a third-party provider is more cost-efficient because it not only provides you with overhead savings, but it also increases your productivity and quality of labor.

3. You’re tired of fulfillment errors.

When you partner with a third-party provider like Armstrong – Houston, you immediately gain access to industry experts with a wealth of knowledge about how to streamline and scale your supply-chain operations in a way that minimizes errors. At Armstrong – Houston, we have been perfecting our process for decades, so our clients experience more efficiency and effectiveness than they would if they tried to tackle their distribution internally.

4. You need a scalable solution.

Within some industries, demand varies drastically from month to month. For example, an electronics company may experience a surge in orders around the holiday season, but hiring a crowd of temporary employees doesn’t provide the flexibility or scalability their business needs. A third-party provider can keep up with the ever-changing shifts in demand so that you can scale profitably.

5. You want better technological support.

When you are trying to manage your distribution in-house, you might always need to be within shouting distance of your warehouse. Most companies don’t have the technology and security they need to keep their inventory safe from afar, so someone has to hover nearby. Armstrong – Houston offers inventory-management technology and real-time tracking that allows you to stay on top of your inventory from across town, the country, or the world.

6. You need help in the final mile.

Final-mile delivery is one of the most important — and visible — parts of the supply chain. According to a MetaPack survey, 59 percent of consumers say they buy more from retailers that provide quick, easy and transparent deliveries. When you pass your orders over to a third-party provider for the final mile, your customers receive more efficient, error-free deliveries that make your company look good.

7. You want to add value to your supply chain.

Outsourcing your warehousing and distribution gives you access to solutions that add value to your supply chain. For example, Armstrong – Houston not only can handle inventory control, management and security, but also consolidation, tracking, cataloging, installation, disposal and more. Third-party providers are always finding new ways to provide win-win solutions and create value for you and your customers. 

8. You’re being suffocated by stress.

The bottom line: managing warehousing and distribution is no picnic, but it doesn’t need to add stress to your daily life. Call Armstrong – Houston today at 281-897-1118 to learn how outsourcing can add ease to your operations.