From hunting down carriers to dealing with damaged freight claims, handling your logistics in-house can be a real headache—whether you’re a 10-person operation or a multinational corporation. Trucks and drivers are in short supply and transportation costs are on the rise, driving the price tag up, while efficiency plummets. As for scaling effectively? You can forget about that, at least while your supply chain is holding you back.
With shipping as a significant role in your company’s ongoing success, optimizing your supply chain is critical. Making the switch to outsourced logistics is an invaluable step for many companies, helping them maximize their transportation spend and gain greater visibility, without relinquishing control. And since these services can be fully customizable, it’s possible to outsource the functions you don’t want to handle, while holding on to the ones you do.
Customization is king
There’s a common misconception that outsourcing logistics is an all-or-nothing deal—that you hand over the keys to the warehouse, so to speak, only to find yourself locked out. But that’s not the case.
Many outsourced logistics providers and third party logistics (3PL) companies offer the same level of customization that you’d expect from any other service your business leverages. You wouldn’t expect your cleaning service to add carpet cleaning if your office floors are all linoleum; likewise, you shouldn’t need to pay for the logistics functions you don’t want. Opt for a company that lets you bundle services that match your requirements—and only pay for what you need.
Putting a price on convenience
Another misconception about outsourced logistics is the idea that they’ll drive up costs. Of course, services of value require a fee. But the operational efficiencies, strategic business insights, and established carrier relationships that can come with outsourcing your logistics will ultimately bring costs down.
Say you outsource the handling of your freight claims management. When you’re busy, it’s all too easy to let claims sit, out of sight and mind, until the window to file has passed. Even if you do try to file them in time, you still have to worry about gathering the right documentation, photographing damages, and getting the fax machine working—forcing you to waste valuable time that could be better spent on business development.
An outsourced logistics provider can take care of all the busy work for you, ensuring your costs are recouped so your bottom line doesn’t suffer.
Outsourcing may also be the solution to your carrier capacity issues. Most providers have rich connections with reliable, pre-vetted carrier networks that can expand your capacity and ensure your shipments always get to their destination. Plus, you don’t need to go through the hassle of calling multiple carriers up to find one that meets your needs.
If you’re interested in learning more about what outsourced logistics can do for your company, contact CTSI-Global today.