10 Reasons to Outsource Logistics Services

10 Reasons to Outsource Logistics Services

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Logistics makes up to about 35% of your overall business cost:

Mess it up and you risk a huge amount of cash flow! There’s a reason why the supply chain industry continues to thrive. Every business globally, knows that it is the smarter move to outsource logistics services.

Self-managing such operations have also proved to be complicated and taxing. This takes away the attention that should be spent on the core functions of your business. As there are a ton of factors to make supply chain work, it is just wiser to let the experts handle it.

Here’s 10 reasons why logistics outsourcing will get your business ahead:

1) You get to focus on things that matter

Starting with the obvious, the process of warehousing and transporting of goods is an overwhelming one. This significantly slows down your core business, as most of your time is caught up in trying to handle logistical matters.

When trying to scale your ventures forward, time is your biggest asset. In this case, your best bet to retain precious time is to outsource logistics operations. With all the hassle out of the way, you can now focus on the processes that really matters to your business.

To further elaborate how powerful this perspective is, understand that:

2) Logistics companies can provide a full repertoire of services

Believe us when we say that most logistic providers can handle your entire supply chain process. Whether it’s transportation, warehousing or freight forwarding, such companies are built to tailor to your needs. Logistics outsourcing providers also work with a huge network to fulfill even more requirements.

Cost Efficient

Logistics Outsourcing-Image02You’re probably thinking – “wait, supply chain outsourcing is going to cost me money!”

It is normal for businesses to avoid engaging 3rd party providers as it will incur costs. The irony is that, trying to figure out your own logistics system, will actually cause your team to bleed even more; Financially.

When you outsource logistics operations to the experts, you can avoid these three challenges and save thousands of ineffective dollars:

3) Cut back on manpower costs

To carry out in-house logistics means forking out more money for manpower. When you engage supply chain outsourcing, you pay them a fixed amount and they will handle everything else – including their own team of manpower.

4) Reduced liabilities

Aside from labor costs, you will also save money from investing into transportation vehicles and warehouse spaces. All these will be provided by logistic companies and lift a huge load off your shoulders.

5) Handling of petty expenses

Not being tied down by such properties will also save a whole lot of incurring expenses. These includes maintenance, insurance, taxes and docking costs. You can now free up such expenses and roll it back into your business.

Enhance Your Customer Service

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As if it couldn’t get any better, what if we told you that logistics outsourcing will make your customers twice as satisfied?

6) Making use of technology

Supply chain companies in the 21st century, has many technologies in place – and this will get even better. Lets be honest; Nobody knows how to deliver goods better than these logistic giants.

As they prioritize their relationship with customers, log companies have since caught on technological trends to enhance their service. This includes real-time tracking, where your customers can always be in the loop of their goods.

7) Knowing the ropes to better delivery

Supply chain providers are masters in their own field and own field only. They usually focus their efforts into better logistic services. Hence, they know the subject better than anyone else.

Whether it’s taking a more efficient route or reducing client’s cost, your customer’s delivery experience will be well taken care of.

Scale Your Business with Ease

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If you decide on establishing an in-house supply chain management, be prepared to commit to it in the long run.

8) Save time trying to expand logistics team

As your business grows, so does your supply chain. Establishing your own team of logistics means spending more time and money to scale it along with your business. This becomes a lifelong obligation. On the other hand, supply chain outsourcing will allow the 3rd party to handle the growth of their own team. With that out of the way, you can now move your core business at a faster rate.

9) Adjustability

Because a 3PL provider owns the warehouse space and transportation, they also have the ability to increase your logistical needs. As your business grows, you can be rest assured that your 3PL provider will be coping up with the scale of your operations, just fine.

10) Other benefits

More to the positive list of logistics outsourcing; Includes the safety of your goods. These companies work with a code of ethics to ensure that your resources are in good hands. As a client, you also have control of your supply chain operations over a duly signed document.

To conclude…

It is evident that these key benefits will significantly contribute to the growth of your business. 3PL parties can also get the job done right instantly. This means getting your job done in a clear and concise manner – whilst not wasting time and money unnecessarily.

tags: outsource logistics, logistics outsourcing, supply chain outsourcing, supply chain management

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  • supply chain consultants
    Posted at 13:33h, 19 August Reply

    Very informative blog. It provides a great knowledge of using 3pls. One more thing i would like to add in this information that 3pls provide a tailor made business solutions to eliminate challenges in your e commerce supply chain business. Thanks for sharing the above information.

    • Alvin Ea
      Posted at 15:56h, 24 August Reply

      Thanks you for the additional pointer! You are right. Logistics have now grown to even take on tailored solutions. Especially with the influx of people operating in e-commerce. They expect their transactions to be done swiftly and outsource logistical operations – so as to do away with the hassle. No wonder even Jack Ma have set his eyes on the logistics industry!

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