Warehousing and inventory-carrying costs are on the rise, according to the 26th annual State of Logistics Report.i Omnichannel ecommerce growth will likely strengthen this trend for the foreseeable future. To control these costs, many companies are leveraging value-added services at the distribution center.
Whether it’s assembling holiday gift sets, producing multipacks of beverages, or customizing monthly subscription orders, delaying product configuration until the last possible moment allows companies to be more responsive to customer demand without maintaining excessive inventory. Moving product customization closer to the customer also helps to accommodate unreliable forecasting or business fluctuations, reduce inventory carrying costs, and increase speed to marketing.
Positioning value-added services like packaging and fulfillment as close to the customer as possible doesn’t require a major overhead investment. These functions can often be outsourced to an experienced third-party provider. Many companies find that this flexible arrangement offers greater scalability in terms of space and labor and access to state-of-the-art technology and equipment without tying up capital.
At Saddle Creek, our value-added services have helped leading companies like TalkingRain and Coty to improve inventory control, better manage costs and accommodate customers’ changing needs. Read our case studies to learn more.
i 26th Annual State of Logistics Report. Council of Supply Chain Management Professionals (CSCMP). June 2015 – See more at: https://www.sclogistics.com/news-resources/press-releases-news/value-added-services-help-to-control-costs#sthash.GfpW9zuC.dpuf