In-house or Third Party Distribution?

The reasons given for manufacturers, wholesalers and retailing companies contracting out their distribution are many and varied but most are well known to all who operate in this field. After all, distribution contractors like Christian Salvesen, Tibbett & Britten, Excel and Hays have been preaching them loud and clear for the last ten years. They hold out the promise of, among other benefits: Incredible Savings on Operating CostsLiberating Vast Amounts of CapitalDramatic Service ImprovementsAn End to Industrial Relations HassleFreedom to Concentrate on the Real Business etc.