Why Logistics Outsourcing Beats Insourcing

When you consider the benefits of outsourcing your logistics, you can end up with a long and impressive list. From being able to focus on your company’s core competencies and reducing risk, to being more flexible and improving customer satisfaction, it can make outsourcing sound like a no brainer.

So why doesn’t every business outsource their logistics?

Considering that we are a third-party logistics provider, we really can’t understand why more companies don’t take advantage of outsourcing.

But we think we might see the problem. And it lies in the perception of the benefits we listed above, and the many others that come from outsourcing logistics to a 3PL.

There is Only One Benefit of Outsourcing Logistics

When you look at an outsourcing benefit, like focusing on your core business, you may already have an argument against it. In this case, you might say “yes, but we can add the expertise, systems and facilities to manage and maintain the logistics we need, so why outsource?”.

Here are a couple other potential responses to outsourcing benefits.

Outsourcing makes your company more agile.

“Don’t talk to us about agile, we doubled sales in 2 years and didn’t skip a beat, so why outsource?”

You’ll improve customer service.

“We’re already considered a customer service leader in our sector, so why outsource?”

These are all really valid arguments and we hear them all the time. And many businesses simply like to have in-house control of everything they do.

In any case, the benefits of outsourcing all have one thing in common that can’t be said for doing the same thing in-house.

They save money. If you can’t enjoy this one benefit from outsourcing, then you shouldn’t outsource. But it is imperative that you consider and analyze all the costs and the full impact of every non-core function your company chooses before opting against outsourcing.

When you do, we’re confident that outsourcing will be the smart choice. If not, we wouldn’t be in business. To learn more contact us at PiVal International today.