Strategically Speaking: Should You Be Outsourcing Your Distribution?
7 questions that will help you decide.
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2. How do your operating metrics (e.g., functional expense to net sales ratios, lines per order, fill rates, order time in process, average collection cycle, etc.) compare with similarly sized competitors? Visibility to operating information is essential to managing costs and successful profit-improvement initiatives. If your business systems cannot provide this information without a brute-force effort, you are likely leaving money on the table—profits that outsourcing may allow you to leverage.
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David Hetherington
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