This week’s blog is the last one of year and we’ll be discussing the benefits of outsourcing your logistics and the advantages it can have for your business.
Outsourcing is a method in which businesses contract business functions to third-party providers, whether this be goods or services. This can be hugely beneficial to your company from increasing efficiency rates to cost savings.
Here are some of the main benefits your business could gain when you choose to outsource your logistics:
Cost Savings:
One of the advantages of working with external companies, is lower costs. When you work with a third-party for your logistics, it eliminates the transportation operation costs and reduces the number of staff required and the related costs. It also means you don’t need to invest in warehouses, systems, and technology, as well as the cost of hiring employees to cover these roles. The costs saved can instead be reinvested into other parts of your business, to help growth. It also lowers your overheads costs, as third-party logistics are able to negotiate with suppliers to get you the best prices, while maintaining a high level of quality and service.
Logistics Expertise- Increase your access to additional skills:
When you outsource your logistics, you work alongside other skilled people within your industry’s supply chain, and it can benefit your company’s scale of growth and reach. Learning about the latest industry trends and technologies and implementing them into your supply chain can enhance your efficiency, which positively impacts your business.
Enhance your customer service:
They say when you spend one time doing something, you don’t have the time to do something else. Having a third party to outsource logistics for your business can free up time, which in turn allows you to focus on other core elements of your company. This extra attention and focus could improve the service you provide to your customers.
Advanced Technology Systems:
The benefit of an external logistics supplier is you can gain access to management systems, warehouse management systems and essential technology to ensure your operations run smoothly. The software can be costly, so if your supplier provides that technology and covers that cost, it saves your company from investing in it, yet you still directly receive the benefits. Having access to order tracking programmes allows companies to keep their customers up to date with delivery notifications, which in turn delights your customers and could create repeat business.
Increase your reach:
Outsourcing provides your business access to more facilities and increases your capabilities. Utilising the facilities such as the warehouses of your third-party logistics may allow you to reach clients that were previously not possible, due to your logistic provider having global locations in countries where you may not have your own facilities. If they specialise in a particular service you provide, this can also increase your efficiency.
Supply Chain Flexibility:
Your supply chain needs to be versatile and keep up with the industries latest trends as well as your customers’ requirements. Working with an external outsourcing logistics supplier, ensures you can accommodate with the fluctuations in demand and adapt when shipment volumes fluctuate. By being ahead of the curve and aware of what goods are most in demand, it allows you to provide your clients with a high level of service.
Conclusion:
There are many benefits to outsourcing your logistics. At Storm we are proud to deliver an excellent service to our clients and ensure their business needs are taken care of to the highest standards. The logistics system is complex, so trusting a third- party logistics provider to take care of your business needs can be an extremely effective way to enhance the running of your company. With many benefits, including enhancing your supply chain, lowering your costs, and saving time to allow you to focus efforts on other core part of your business, it’s clear to see why many companies choose to outsource their logistics.
Be sure to get in touch with our team and let us support your business!
https://www.storm-procurement.com/contact-us
Email us: logistics@storm-procurement.com
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