Outsourced Logistics Management: How to Combat Ongoing Labor Shortages

Ongoing labor shortages strain manufacturers’ ability to drive growth and reduce costs, adding to current supply bottlenecks and rising prices. Manufacturers who rely on in-house logistics risk backed-up supply, inefficient logistics operations, and delayed reactions to market volatility as drivers and employees increasingly become hard to find.

With labor shortages, manufacturers must maintain strong supply chains. Outsourcing logistics management is a key step in increasing supply chain flexibility and reducing workforce requirements. Outsourcing provides access to valuable industry expertise and strategic data, whether using a logistics provider or third-party logistics (3PL) company.

Lead a leaner workforce

Labor shortages make it harder to find quality employees. Outsourced logistics management allocates a team of dedicated logistics specialists to oversee the seamless operation of global supply chains. Manufacturers can employ a smaller workforce by outsourcing logistics tasks like in-transit tracking and freight claim management.

When a manufacturer’s supply needs change with new markets or products, the next step is often finding and onboarding additional employees to manage supply chain logistics. With outsourcing, manufacturers can leverage built-up industry knowledge and scalable skills.

For example, an outsourced logistics team can include a transportation management system (TMS) analyst to manage TMS uploads and BOL distribution. The team can also include supply chain administrators who perform in-transit tracking, carrier compliance, and more. Finally, a global account manager coordinates operations between the outsourcing provider and the manufacturer. Together, this team possesses a diverse knowledge base and abilities specifically designed to optimize shipping processes across an organization.

Money-saving scalable efficiencies

In an environment of labor shortages, supply disruptions, and inflation, cutting costs is crucial. By increasing the efficiency of supply chains and freeing up time for strategic goals, outsourcing offers many ways to save manufacturers’ time and money.

Technology can improve productivity and help drive growth even in sub-par market conditions currently occurring in the construction industry. Outsourcing gives manufacturers access to cutting-edge technology such as AI and machine learning, real-time data visualization tools, and data-driven insights. These innovations identify actionable ways to cut costs and streamline supply chains without additional hiring expenses.

Outsourced logistics providers can also lower costs for manufacturers by taking over carrier contracts and manual logistics tasks. Outsourcing logistics teams can identify the most cost-effective transportation for all shipments by carefully analyzing and comparing carriers and saving money in carrier contract negotiations.

Lastly, outsourcing logistics means manufacturers can say goodbye to repetitive logistics management tasks. Using a TMS, dedicated supply chain administrators will complete manual tasks like invoicing, shipment tracking, and appointment scheduling faster than an in-house team. As a result, outsourcing saves money for manufacturers and allows them to spend more time on strategic objectives.

Boost supply chain flexibility

Amid the uncertainty, manufacturers can increase their flexibility by optimizing supply chains. Outsourced logistics management increases a manufacturer’s supply chain agility, beginning with visibility. In the event of labor shortages, complete supply chain oversight allows outsourced management to identify any problems, where they occur and react. This oversight ensures optimized control of supply chains and facilities on-time deliveries.

Many outsourced logistics management companies also offer customizable bundles of services. As issues arise and needs become apparent, manufacturers can add on outsourced services like carrier management, inbound freight management, and freight claim management.

Build stronger supply lines

Market unpredictability forces manufacturers to evolve—often in ways that have a long-term impact. For example, when labor shortages threaten supply chains and slow transportation, outsourced logistics management provides cost-saving efficiencies and the resources manufacturers need to get by with a smaller workforce.

For those looking to boost productivity in the face of ongoing labor shortages, CTSI-Global offers customized or fully-outsourced end-to-end transportation and logistics management. We can support your team with the real-time data needed to make informed decisions and preserve your bottom line with a comprehensive range of outsourced services and baked-in business intelligence.

Protect your business against further labor shortages with streamlined supply chain management. Contact us today.