Whether you’re a sole proprietor running an eCommerce enterprise from home. or a large, multinational corporation, logistics are part of your business. Maybe your warehousing requirements have outgrown the basement and garage. Or maybe you need a transportation network to reach all corners of the world. In any case, you’ve probably considered outsourcing all or some of your company’s logistics.
Deciding if You should Outsource Logistics
In the case of needing more warehousing space, the decision to outsource may be easy to make. Either you invest in the purchase, staffing and equipping a warehouse space, or you outsource.
But for other businesses, those large enough to have extensive in-house logistics, the decision might not be so clear-cut. Maybe you have your own fleet of trucks, but you’re falling short of increased customer demands for next-day or same-day delivery. Do you add faster last-mile delivery capabilities, or do you outsource?
Why the First Step is to Set Goals for Outsourcing Logistics
Any company that outsources some or all of their logistics can have a wide range of reasons, or goals, for doing so. Here is a list of some of the more common goals of outsourcing.
- Reduce Costs – Sure it’s great to walk into the warehouse and see it full of product ready to go. Or to simply call up shipping to schedule a delivery at any time. But what’s the cost of that ability? Outsourcing logistics like warehousing and transportation might mean they are no longer on your premises, but they should cost less. And they may be more flexible and responsive to your needs too.
- Maintain Up-To-Date Technology & Expertise – Technological advancements are changing every facet of every business. Nowhere is that truer than in your logistics. Long-gone are the days of ‘set it and forget it’ warehousing, transportation supply-chain management.
- Maximize Customer Service – Not only do end customers expect no-extra-cost, same-day shipping, but they also want to return things just as quickly and conveniently too. Even if yours is a B2B enterprise, helping your clients meet end-consumer demands is crucial to your business.
If your goals for outsourcing are not met by a third-party logistics (3PL) company, then your decision whether or not to outsource is crystal clear.
To find out how your business can enjoy all the benefits of outsourcing logistics, get in touch with PiVAL International.