Decisions, decisions. For shippers that haven’t worked with an outsourced logistics management provider before, determining which services to utilize can be tricky. Is it more cost-effective to get the complete package, or will that include expensive add-ons that you don’t really need? And how customizable are custom bundles anyway?
While the answers to these questions will vary from company to company and provider to provider, there are a few considerations that every shipper should keep in mind when tapping outsourced logistics management solutions. Here are some tips to help you choose the right option for your company.
When to build a custom bundle
If your team has mastered certain supply chain functions but struggles with others, it may be worth building a custom bundle of outsourced solutions. This not only allows shippers to fill in any gaps they might have but gives teams more time to focus on the tasks they’re best at.
For example, if a team lacks the time, resources, and expertise to manage its transportation management system (TMS), managed TMS services can be highly valuable, boosting efficiency along the supply chain and saving money by ensuring optimal carriers and routes are selected for every shipment. Or maybe a shipper has got its outbound freight processes down to a fine art—but when it comes to inbound freight, there’s a lot of room for improvement. In this case, the logistics management provider could coordinate that side of things while the shipper focuses solely on outbound freight, minimizing the potential for delays and other problems.
Some shippers also start with a smaller bundle to make the most of a tight budget. To determine which services you need most, ask yourself:
- Where are our biggest gaps and blind spots?
- Are there any tasks that our team consistently doesn’t have time for?
- Where could we benefit most from deeper expertise and additional resources?
It’s also important to check that the bundle you choose won’t come packaged with services you don’t actually need that only serve to drive the price up. By opting for a truly customizable bundle, you can scale up and down the services you rely on depending on your experience with the provider and your current needs.
When to go all-in with end-to-end solutions
In some cases, fully outsourcing logistics management may be the most cost-effective option for a shipper.
This is often the case when shippers have a small team that is struggling to keep the supply chain running effectively—especially as it scales. Hiring more full-time staff is extremely expensive: even beyond their salary and benefits package, the time and expense of finding and training them must be factored in. By handing off day-to-day logistics management to an outsourced provider, shippers can ensure that the supply chain hums along smoothly at a fraction of the cost of hiring a bigger team—while freeing up existing staff to focus on more strategic initiatives.
Logistics management solutions tailored to your needs
At CTSI-Global, we believe that outsourced logistics solutions should work for you. That’s why we offer fully customizable bundles that allow our clients to find the support they really need. In many cases, after seeing what we can do, companies engage us to handle even more aspects of their supply chain—but we would never pressure shippers into services they don’t want or need.
The best solution is a partnership, and we’re ready to partner with you. Contact us today.