In the age of ubiquitous IoT, logistics has become a core expectancy at scale; i.e., a specialized service a company is not specialized in that requires significant investment and expertise to carry out, yet, expected as a standard regional capacity. Retail businesses can no longer survive in today’s real time omnichannel market without taking advantage of professional logistics, let alone compete. Let’s take a look at the vital incentives for outsourcing supply chain operations to a third party expert.
7 compelling reasons for a company to outsource logistics, instead of running its own headless fleets:
1. Cost Efficiency.
It’s no good endeavor to have to deal with perplexing supply chains on top of every day business responsibilities, particularly when there are excellent third party providers that can outmatch the core expectancy with their own core competency, i.e., by means of specialized warehousing, inventory and distribution system as well as transport with omnichannel at scale; for a bargain.
Obviously, having a stranger handle the company’s core expectancy is a terrifying prospect. Thus, identifying and selecting the right logistics provider can offload unnecessary responsibilities, grow existing capacities to better serve customer needs and enhance transparency, in one silver bullet.
3. Superior Resources.
Leading logistics service providers often have one thing in common – an encompassing network of quality supply and resources, which typically derives from excellent service and accumulated experience and contacts that benefit business outlooks in terms of continuous growth and development. Simply put, they are blessed with superior supply chain management.
4. Minimized Risk.
By substituting inexperience and incapacitated logistics with outsourced subject matter expert enables the company to shift focus to its own core competencies that require undivided attention, e.g., planning, marketing, sales and market expansion. For companies gripping over “it’s more expensive to hire someone than do it yourself!”, try to see it from the listed seven angles: it’s costly not to.
Leading logistics providers not only maintain sufficient warehouse space for your business as it expands, it also provides sufficient cargo and transportation that can meet the special handling conditions your product requires. And that, is one more big expense you don’t have to worry about! Be it seasonal, promotional goods, or for whatever reason for sales, the outsourced provider can feasibly tailor to swift changes with great flexibility.
In handling supply chain services, one thing that make leading third parties who they are, is, first and foremostly, the technological advancement specialized to optimize performance, one of which would be immensely expensive considering the regional capacity, if not impossible for a company of any size that doesn’t require a supply chain core competency of their own.
7. Industry Expertise.
Leading third party logistics providers are known to stay ahead of industry best practices with interactive standard operating procedures (SOPs) where management relies on modern technology to progress with constant updates to the overall process. Thus, they are capable of advising on the latest best practice for, e.g., packaging design, suitable transportation, product arrangement and other market-essentials, including manufacturing, that of which only a subject matter expert with progressive outlooks can see. Such best practices can bring efficient delivery and cost-effective services with minimal overhead requirements. Reputable third party logistics providers can also support your brand with enhanced reliability and consumer-friendly engagements, on and offline, as well.
In conclusion, outsourcing your supply chain to a third party can be the best decision you ever made; provided it is selected carefully. Different providers bring different qualities to the table, but the best choice will be able to answer the most questions about your business.
Compiled by BLOG.SCGLogistics
Reference and picture credits https://medium.com