Contract distribution is a legal agreement between a business (supplier) and a distributor, where each party has its own roles and responsibilities for the supply, movement and delivery of goods. For business owners, running a fleet alongside running a business creates a multitude of challenges, so using contract distribution is an attractive option. Here are some of the reasons why contact distribution can benefit your business.

Time management – Having a contact distribution agreement in place allows you to hand over the responsibility of getting goods to where they need to be to a third-party, so you can get on with other aspects of running your business. This means no additional time is spent on administration and organisation associated with running your own fleet of vehicles, or the processes involved in supply chain and delivery to customers.

Keeps costs low – with a contract distribution agreement, there is no need to invest in your own transport and maintenance, warehousing, or management of running the distribution side of your business. If you have fluctuations with the number of goods needing to be shipped or the frequency of consignments, using a contact agreement evens out the costs as facilities are always in place and up and running. 

Operational benefits – when you have a contract agreement with a distributor, operations run smoothly. There is no downtime associated with vehicles being off the road, drivers taking time off work, or other disruptions to service that could affect your reputation with customers.

Expertise – The laws, rules and regulations surrounding distribution across the globe are always changing and evolving, and this can present many challenges for businesses shipping goods nationally and worldwide. With a contract distribution agreement, those with the knowledge and expertise in the industry will be able to find the most efficient, secure, and cost-effective solutions for any consignment.

Why choose LTS as your Contract Distributor?

At LTS, we understand the importance of working in partnership with our clients to create a bespoke contract agreement that helps them get the most for their business and its customers.

We are an experienced team with many years in the haulage industry behind us. We work with businesses of all sizes and find the best ways to help with any aspect of supply, storage and distribution. Our advanced logistic systems can improve supply chain management, efficiency and reduce costs for national and international consignments. 

We constantly monitor our performance, so when we spot something that could be improved, we work with our partners to come up with effective solutions. We adapt and evolve alongside your business and look for new opportunities, giving you a flexible approach that always strives for the best outcomes.

A contract distribution agreement takes all the stress and hassle out of the logistics side of your business, so you can get on with increasing growth and revenue. For more on how we can create bespoke contract distribution to benefit your business, get in touch with our team today!