Capacity LLC

The potential market for third party distribution services encompasses a large portion of the supply chain, as shown above. Any business whose core competencies do not include inventory or facilities management should consider outsourcing those functions.

Online retail package growth alone is projected to grow from about 3 million packages per day to over 6.5 million per day by 2003. The changing channels of distribution present a serious fulfillment challenge for retailers, and a huge opportunity for experts in distribution operations. Traditional retailers will need to improve operating margins and efficiencies to compete, and wholesale businesses will face similar pressures, only on a larger scale with narrower margins.

As shown below, businesses with annual sales between $1 million and approximately $30 million benefit greatly from outsourcing their fulfillment.