Faster delivery reduces finished goods inventory and thus lowers the costs of handling and owning this inventory. Your products remain accessible throughout all stages of distribution, making it easier for you to respond to problems or new opportunities quickly. Separately, you gain increased financial flexibility because faster delivery means faster collection of receivables. Increased operational flexibility enables you to manage production better and to allocate resources more efficiently. As a result, customers are more satisfied and loyal.
Faster distribution means more selling days for retailers.
Increased flexibility makes it easier to enter and to supply new markets, and to do so quickly. The benefits of optimizing distribution can be achieved either with an in-house distribution system or through outsourcing. In general, however, the best way to optimize distribution is to out-source it. Logistics providers can and do deliver greater savings and increased efficiencies because distribution is their business. They have greater resources and specialized expertise that is hard to find in-house.