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Logistics is an essential but time-consuming and expensive part of any business. Luckily, there is a solution that can help streamline operations and optimize costs — outsourcing your logistics.
In the modern business landscape, outsourcing logistics needs is becoming increasingly popular. Not only can it help you save time and money, but it also increases organizational efficiency and flexibility.
If you're new to the topic of logistics outsourcing, don't worry. We'll cover what it is and why it's beneficial. Here are five reasons why outsourcing your logistics needs can be a smart move.
What Is Logistics Outsourcing?
Logistics outsourcing is the act of contracting with a logistics provider to manage one or more elements of the supply chain. Typically, these services include transportation management, inventory management, warehousing, and fulfillment. By outsourcing these logistics tasks, businesses can focus on their core competencies or operations while streamlining the supply chain process.
Why Outsource Logistics?
Shipping and logistics can be an incredibly complex process. Whether you’re sending a package to the other side of the world or just across town, many details need to be taken care of. This is why many businesses choose to outsource their logistics operations to third- or -fourth-party logistics providers to simplify their shipping needs and ensure orders arrive on time and without issue.
However, choosing the right logistics provider isn't always easy. Here are 13 criteria you should look out for when choosing a third-party logistics provider.
5 Reasons for Outsourcing Logistics
#1 Cost Savings
Any business' top priority is to keep costs low and maximize profits. By outsourcing, businesses can avoid investing in technology and infrastructure, as well as reduce personnel costs. When working with an experienced provider, you will only pay for what you need without having to foot the bill for any additional expenses.
In addition, transporting goods via an outsourced company can often be less expensive than shipping the goods internally. Logistics providers have established connections with shipping companies and are therefore able to secure better rates than what a business would be able to negotiate on its own.
In fact, according to a study on the state of logistics outsourcing in 2017, 75% of shippers reported cost reductions due to outsourcing their logistics needs.
#2 Improved Efficiency
By outsourcing your supply chain management, you can free up resources that can be used to focus on core operations. A logistics provider who specializes in the field can ensure that all of your processes are being optimized for maximum efficiency.
Additionally, outsourcing allows you to eliminate costly delays in production and distribution by improving visibility across the supply chain. This includes real-time tracking of shipments and the ability to make adjustments as needed.
However, instead of relying on logistics providers, you can take the guesswork out of logistics with Cargoflip. We help businesses with a single platform that offers real-time updates on every shipment. Using Cargoflip's technology, your team can quickly identify any potential issues and take corrective action, ensuring that your goods arrive at their destination on time and without issue.
#3 Increased Flexibility
Outsourcing provides businesses with the flexibility to adjust operations according to changes in customer demand. For example, if you need more inventory during a peak season, an outsourced logistics provider can quickly provide additional resources and services.
An experienced logistics provider has the resources and expertise to adjust operations quickly based on changes in your industry or market conditions. This means that you can remain agile and flexible as needed without needing to invest in additional resources or personnel.
#4 Improved Customer Service
An experienced provider will have detailed knowledge of the entire supply chain process, along with access to data that can help improve customer service levels across the board. This allows customers to get their orders faster while also experiencing fewer issues with shipments overall.
In addition, by outsourcing your logistics needs, you can build relationships with a variety of carriers and suppliers that can help to improve customer service. This allows you to offer customers more delivery options while still ensuring they have visibility into their orders and deliveries.
By partnering with Cargoflip, companies can improve customer service by keeping customers up-to-date on all shipments and reacting to changes promptly.
#5 Scalability
Outsourcing also allows businesses to scale up or down depending on their current needs without needing additional resources or personnel.
This means that companies can adjust operations quickly and easily to accommodate changes in customer demand without sacrificing quality or service levels as demand increases or decreases over time.
Streamline Your Logistics With Cargoflip
Outsourcing your logistics is an effective way of managing costs while improving operational efficiency, customer service, and scalability.
By leveraging the expertise of an experienced provider, businesses can ensure that their supply chain operations are running smoothly and that orders are shipped on time and without issue.
Whether you’re looking for long-term support or need some extra help during peak times of the year, partnering with an experienced logistics provider can provide tremendous value to any business.
With a tool like Cargoflip, businesses can gain even more visibility into their supply chain operations while simultaneously improving customer service and scalability. Leverage Cargoflip’s proprietary technology to streamline your logistics processes, ensure that orders are delivered on time, and provide customers with real-time tracking of their shipments.
