Why Outsource NRI ?

Focus on Core Competencies

If your core competencies are:

Then your focus should be directed towards these areas. Managing a complete distribution network is a major task unto itself. Attempting to handle this task can take away from your focus on core competencies. By using a Logistics Solution you can be assured that your products will be handled properly and delivered to the retailer in a timely manner. This will allow you to better direct your energies on your brand’s growth and development.

No Fixed Overhead

Efficient distribution of your goods requires you to have a complex physical distribution network in place. This involves:

• A commitment to high fixed costs for warehouse space

• These commitments can be from 3-5 years
• If your company is growing you will be required to either pay for unused space to allow for that growth or pay a premium for short term space
• If your business is at all seasonal those costs will remain 12 months of the years whether or not there is any commercial activity to support the expense.

• Major capital costs for racking and fixtures
• Costs and headaches associated with warehouse employees
  

Establishing and running an efficient physical distribution network is extremely expensive, due both to the initial capital costs, as well as the fixed costs for space. By utilizing a Logistics Solution provider such as NRI, it is possible to operate with no fixed overhead for distribution. The cost for distribution becomes a variable cost based on volume. This translates into:

• No costly “slow seasons” when fixed overhead is proportionately much higher due to low shipping volumes
• Greater product margins

Greater Margins

By working with a fulfillment center, not only can you come close to matching the costs of other corporations, you may be able to better them due to operating without fixed overhead. NRI’s service charges are variable, meaning they are a per-piece charge or percentage of wholesale value. When compared to the huge fixed costs of establishing, staffing, and running a warehouse, it is in fact possible to achieve better margins when utilizing a logistic provider than your own warehouse.


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