Why Outsourcing Logistics Often Makes Sense

We spoke recently about the potential benefits of outsourcing warehousing duties, partially or in full, to third parties service providers. We spoke of the way in which it can often be an extremely beneficial decision for the business as a whole, depending on a variety of on-going factors and considerations.

Along with warehousing, it is also worth considering the option of outsourcing logistics duties to a third-party service provider. Looking after logistics in-house can certainly have its advantages, particularly when it comes to minimising the complexity of the supply chain and taking full control over everything that happens. But at the same time, there are certain benefits that come with outsourcing logistics that could potentially go over and above those of in-house operations.

So with this in mind, here’s a quick rundown of just a few of the reasons why, depending on your circumstances, it may be beneficial to outsource logistics to a third-party service provider:

1. First of all, there is the way in which outsourcing logistics can potentially save you something that all the money in the world cannot buy – time.  Not only can established and efficient logistics companies get the job done much quicker, but they also take the responsibility away from you and therefore leave you with far more time to focus on more important business matters. This can in turn help drive efficiency and productivity significantly.
2. In addition, there is the way in which third-party logistics service providers also have the potential to reduce overall operating costs. You will no longer need the space and equipment required to handle logistics yourselves, nor will you need to foot the bill of the transportation required to make deliveries.
3. In terms of overall performance, it’s always worth bearing in mind the fact that it takes experienced and dedicated professionals to handle logistics in the most consistently reliable and effective way possible. You may have some experience with logistics, but not to the kind of extent as those who specialise in nothing but logistics, 24/7. So once again, overall business performance and efficiency can improve as a result.
4. Also worth considering is the way in which it is highly unlikely that the logistics equipment you use within your business will be anywhere near as advanced or capable as that used by the most advanced and fully dedicated service providers. Chances are they will be using the kind of new-generation technology and logistics approach that the average business simply could not replicate.
5. Bringing in dedicated experts like these to help out is always beneficial, due to the way in which they can offer expert advice and assistance on all aspects of logistics and warehousing operations across the board. As such, it’s a little like taking on an experienced professional adviser at the same time as a service provider.
6. Last but not least, working with a leading logistics company also means gaining access to their own network of service providers and resources, which could prove to be invaluable for your company.