The case for contract warehousing

The ever spiralling cost of distribution operations has led to the idea of contract warehousing being reviewed in a new light. The present policy for retailers has been towards cutting down on money tied up in stock in order to leave finance available for other purposes but this usually results in an increased number of deliveries of small volume. The continuing increase in transport costs also creates a situation which calls for the reappraisal of most accepted distribution set ups. These factors are amongst many which illustrate the inflexibility of a company operated system. Some of them are discussed by Gerald Hawkins, of Butlers Warehousing & Distribution Ltd.