This slow sourcing of product frees up much needed pick and storage slots in your warehouse. When distribution is a core part of your business, slow movers are an obvious choice for this method. The objective is to increase productivity in your distribution centre. Let the contractor pre-pick these slow moving items, have it merge on your shipping dock and delivered with the main order. By having the contractor pick the orders to your specifications, product will flow as if slotted in your distribution centre.
Temperature controlled products are ideal for slow sourcing.
There is a large expense in leasing a temperature controlled facility and maintaining its mechanical systems. Consider the advantages of having modern equipment controlling your product temperatures. In a leased satellite facility the operating logistics become difficult. Additional operating costs will include staff and equipment to receive, store and pick product as required. You will also need insurance and an alarm to protect your investment.