The value proposition by Warehousing and distribution companies is rooted in the flexibility and fungibility of costs over various modeling periods. In a typical spreadsheet model it is easy to understand the effect of an economic downturn that reduces demand in certain business segments while increasing demand in other segments. In cases like this an outsourced facility would make more sense to the manufacturer. In situation like these, companies that provide the ability to reach other markets, be it domestically, but far from the manufacture?s location, or regionally or even internationally, become worth the effort. That, in essence, is the value proposition of Warehousing and distribution services.