Outsourcing distribution can speed up time to market, free up more cash and improve profitability.
Agility means asking questions of your supply chain and looking for ways to make it more efficient or to adapt as global markets change. This is particularly important as Brexit continues to cause uncertainty.
Many exporters find that outsourcing inventory management delivers competitive advantage by allowing them to move faster to capitalise on global growth opportunities. It gives them the option to choose whatever sourcing and distribution system suits their business now, with the flexibility to change at any time in the future without incurring new infrastructure and set-up costs.
Although offshoring remains popular, we are seeing more and more exporters are opting for nearshoring (moving production or assembly closer to the customer) and right-shoring (taking into account the proximity of sourced materials, production, warehousing and distribution) in order to optimise supply chains and improve customer service.
Whatever shoring option you decide is right for your business (and we can help you choose), outsourcing your inventory management to UPS gives you an unrivalled distribution network. We have over 35-million square feet of distribution and warehousing facilities, strategically located at approximately 1,000 sites in more than 120 countries, serviced by a package delivery fleet that includes 237 aircraft and over 100,000 vehicles.
Outsourcing gives you more choice, allowing you to select the right options to ensure that inventory levels are better regulated to prevent products being overstocked or out of stock as demand changes.
You can also reduce time-in-transit and overall transportation costs. Depending on whether goods are being transferred between warehouses or delivered to customers, the most cost- and time-efficient method of transportation is automatically used. Optimal inventory location combined with optimal transportation results in the fastest delivery at the lowest cost.
Outsourcing also reduces risk. Today’s marketplace demands uninterrupted product flow and on-time delivery of critical orders. If retailers and distributors are unable to continuously replenish inventory, customers may take their business elsewhere — with subsequent harm to profits and reputation.
Increased options and networked distribution points mean alternative routing is available when unusual events occur, thereby reducing the risk of disruption.
One thing outsourcing should not mean is handing over control. As well as improved agility, outsourcing logistics to UPS gives you the ability to assess and change things quickly, thanks to the company’s sophisticated enterprise resource planning, distribution, and visibility technology.
Get in touch with one of our logistics experts, and find out how agile solutions could help with your personal export challenges.