April 13, 2010-
Outsourcing Logistics Can Have
Positive Effect
on Manufacturer’s Bottom Line
Terre Haute, IN – Growing companies and established ones alike are finding that third party logistics solutions are an important component in their ability to keep up with demand and remain profitable. According to the International Warehouse Logistics Association, 80 percent of Fortune 500 companies outsource at least one function of their logistics supply chain.
“Outsourcing logistics allows companies to focus on their core competencies,” said Andy Hendricks, Director of Logistics for Distributors Terminal Corporation (DTC), a third party logistics (3PL) company located in Terre Haute, Indiana. “DTC has the expertise and technology to save manufacturers both time and money.”
Manufacturers find that outsourcing logistics to 3PLs like Distributors Terminal can reduce their operating expenses and therefore reduce the total delivered cost for their customers.
“Outsourcing logistics functions allows manufacturers to make more efficient use of their labor, capital and resources,” Hendricks said. “They are able to shift from fixed costs to variable costs. They don’t need to make infrastructure investments like warehouse space and logistics software. And they have greater flexibility to react quickly when their business environment changes.”
He said DTC offers value added services like order fulfillment, cross-docking, pick and pack, labeling, kitting and vendor managed inventory that can assist manufacturers in solving the most complex supply chain problems. DTC can also customize specific services according to the unique needs of each customer.
“Logistics has one goal–getting the right thing, to the right place, at the right time,” Hendricks said. “We tailor our services for the benefit of each of our customers to make sure this happens in an efficient, reliable, and cost-effective manner.”
Distributors Terminal Corporation, which has provided distribution and warehousing services to Wabash Valley companies since the early 1900s, is located in Terre Haute’s Fort Harrison Industrial Park. Committed to outstanding customer service, DTC provides comprehensive logistics solutions that include warehousing, transportation and an array of value added services. For more information, visit www.distributorsterminal.com.
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