The first step in deciding whether to insource or outsource warehousing and distribution is to define your exact operational goals after doing an in-depth analysis of your own particular current situation. Know what you are asking for. There are different levels of outsourcing available, not all will suit your requirements. You can consider one of these:
Advantages of outsourcing your distribution:
One of the main reasons cited for outsourcing is that you can focus on your core business and leave specialized services to the experts. Other “hard” reasons are the reduced need for capital investment in plant and equipment and possible savings in the cost of maintenance and repairs. There are other “softer” benefits that can’t be easily quantified such as less staffing headaches and not having to be an expert on the supporting technology.