Outsourced Logistics Myths
Clearing The Air On Outsourced Logistics Myths
Outsourced logistics allows a company to heighten the overall quality of their services. It’s basically the equivalent of the phrase, “know your limits.” Logistics outsourcing helps companies to achieve their business goals by saving money and delivering even better customer service. Gaining flexibility, scalability, access to advanced logistics technology, and strong industry connections are vital to the health of your business operations.
The safe, efficient delivery of your products is your priority. With this in mind, choosing to outsource and place your trust in an external company can be a huge decision. Like anything else, there are always common misconceptions that can deter you from making a decision that may be good for business. Let’s take a closer look and debunk some of those myths.
Myth #1: Your logistics problems end the moment you outsource
Avoid the mindset that once you choose to outsource logistics, it’s no longer your problem. It’s important to foster a strong relationship with your provider, ensuring they understand your business, your customers, and your goals. From there, they’ll be able to navigate and overcome any logistics challenges they face while working towards the goals you’ve laid out for them. Without having this clear understanding and communication, unnecessary problems could arise.
Myth #2: Outsourcing logistics will cost you more money
When considering a new business opportunity, one of the first questions is typically about costs. According to a survey done in the 2016 Third Party Logistics Study, 70% of companies who outsource logistics reported that outsourcing actually lowered their overall logistics spend. As your savings may vary, it could be helpful to analyze your current spend and your results. Then, factor in all of the potential benefits you can receive from outsourcing.
Myth #3: Outsourcing logistics leads to a decline in customer satisfaction and the quality of service
As previously mentioned, the degree of excellence provided by outsourcing is dependent on your relationship with your provider. When you outsource, your provider becomes an extension of your team, working towards the same goal with the same expectations. If these goals are clearly defined, the quality of service and customer satisfaction can greatly improve. Also, because outsourced logistic providers specialize in their services, companies can benefit from their experience.
Myth #4: Outsourcing logistics will cause you to lose control of the strategy
The way you conduct regular meetings with your provider to discuss your outsourcing arrangement will ultimately determine the level of control you have. For example, you can choose to allocate tactical operations to your provider while enlisting your employees to focus on the strategic aspect of things. Set high standards for acceptable technology to be used throughout the operations. You can even request reports and analysis for key-metrics.
Could your business benefit from an outsourced logistics specialist? Econo-Courier graciously serves the New Jersey & New York metropolitan area. Contact us today to see how we can make managing your business easier!