The high cost of both reliable labor and real estate has forced many organizations to carefully analyze their internal distribution capabilities. The overwhelming conclusion is that it is too costly to staff and maintain an effective distribution center internally. In an effort to eliminate internal storerooms, corporations realize that there are ways to significantly reduce their administrative burden. Increased efficiencies associated with tasks such as kitting, mail services, warehousing and inventory management, can be accomplished through strategic partnerships. The benefits associated with such partnerships can not be underestimated. Distribution partners are freeing up valuable corporate assets and employee time to focus on activities more aligned with their core competencies.
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