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| Summary Some businesses, like Santa’s Best, have heavy seasonal distribution needs due to the types of products they sell. In the case of Santa’s Best, a Wisconsin based producer of Christmas tinsel and decorations, their needs for space increase dramatically during the summer months as they produce the hundreds of truckloads worth of product needed to fill their customers’ orders. And during the three weeks prior to Halloween, their labor needs skyrocket as all orders are filled and shipped nation-wide. Santa’s Best chose O’Byrne Distribution Centers to handle their nation-wide Walgreen’s orders and year after year all their products ship on-time and accurately under the tight three week schedule. Benefits Heavy seasonal or cyclical distribution needs probably show most clearly just how important it is to minimize the fixed costs of logistics. By outsourcing their seasonal distribution through O’Byrne Distribution Centers, Santa’s Best avoids the fixed cost of owning or leasing year round space and instead is able to pay for it only when they actually need it. The same is true for their labor needs. This dynamic of "paying for only what you need or use" exists whenever a company outsources its logistics functions – whether the needs are seasonal or not. Every business has heavy and light shipping days throughout the year. And at the end of the year, if they look at it honestly, they have at least a "season" worth of slow days when they were over-staffed and space was under-utilized, and a "season" worth of heavy days when they were under-staffed and paid for it in overtime and were out of space and paid for it through inefficient material handling, damage, and loss of goods. Although these things don’t necessarily show up as a separate line on a company’s profit and loss statement, they certainly exist and are very expensive. By utilizing O’Byrne Distribution Centers, your company will change fixed distribution costs into per unit charges so that your company will pay for only the services it uses, when it uses them.  |
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