In the challenging and rewarding journey of running a business heavily involved in product movement, choosing a reliable logistics strategy is often one of the most critical decisions you will make. The relationship with your customers depends significantly reliable and efficient transportation of products from your facilities to a customer’s doorstep.
Logistics can also be a source of substantial and consistent headaches, as well as a great deal of expense. To assuage inherent challenges, many companies of all sizes opt for outsourcing logistics to third party (3PL) providers or full-service logistics companies.
Benefits of logistics outsourcing
Choosing a reputable, experienced, and professionally-run logistics facility to manage your supply chain brings you years of targeted supply route and fleet movement experience that you simply don’t have time for. In fact, the effort required to establish your own logistics solutions is substantial, and includes great expense and complexity.
In times of unprecedented growth, unexpected facility shutdowns, or other events; you need to have a backup plan in place to ensure your product continues to reach intended destinations. And this applies to a small, one-person show to enormous companies. Case in point:
A big logistical deal
In the recent past, retail powerhouse Target announced a move to outsource their nationwide logistics needs; a decision estimated to save $2 billion. In addition to tremendous cost savings, Target simultaneously boosted their logistics capacity and allowed them to focus improving applicable technology over increasing the size of their existing supply chain.
The logistics skinny
Here’s how logistics outsourcing works: Instead of working night and day in an attempt to create every new supply route your own, you can leverage existing and proven methods and resources implemented by highly experienced personnel. Say goodbye to logistics headaches while you scale up your business or scramble to gather product for a last-minute shipment to a key client. A solid logistics company can meet your needs by tapping into an array of reliable sources.
If you need a short-term logistics rescue, help during your company’s busy season, or you are poised for nationwide expansion; partnering with a professional logistics company keeps your business running smoothly.
How to choose the best logistics solution
When it comes to selecting the ideal logistics partner, do your homework to be sure their capabilities match your needs:
Consider a supply chain consultation
There is no shortage of 3PL providers out there but it is always a good idea to get an expert opinion to identify specific areas of need, missteps siphoning value from your business, or other drains time and money.
Be sure you’re looking at the right problem
Don’t rush into this. Identify areas where you need help and then choose an adequate logistics solution. Doing this in reverse could actually increase costs rather than decrease. Investigate what a potential logistics partner can offer related to your needs.
Make it a good fit
Logistics warehouses include different sizes and types of storage space and material handling equipment. Be sure to partner with one that matches the demands of your product.