Benefits of Outsourcing Logistics

August 12, 2014

Logistics management refers to the process of planning, executing, controlling efficient, effectual flow and warehousing of goods, services and associated information from the place of origin to the place of consumption with an aim of meeting the customer needs. When you let another person, specialised in logistics offer these services, it is termed outsourcing logistics.

Why consider outsourcing logistics?

There are a number of benefits that businesses can reap by outsourcing the supply chain management to a third party logistics. Third party logistics provides an all-in-one solution as far as assembly packaging, warehousing, and distribution of goods are concerned. Making use of third party logistics offers your business with dependable vantage logistics leading to optimization of profit integrating resources and knowledge. These benefits include:

Vast resource network: the extensive network offered by third party logistics services is advantageous compared to the in-house supply chains. With this resource network, each of the supply chain steps is carried out efficiently and cost effectively leading to lower overhead costs.

Optimized services: these logistics service providers have all the resources needed to fine tune each link in the supply chain or even restructure the whole supply chain. Using technology and the resources at their disposal, they ensure that an appropriate amount of goods are transported to where they are required effectively, efficiently and in a cost effective manner within the shortest time possible. The highly advanced management software these logistics service providers use is capable of analyzing and monitoring the entire process which helps to detect and remove any inefficiency so as to streamline the supply chain- this amounts to a constantly improved and optimized logistics.

Saves time and cuts costs: employing services of a third party logistics company saves the time you would have taken to execute the supply chain yourself; this time can be used to do other things for the improvement of your organization. It also helps you save money meant for warehousing, transportation, and the personnel to execute the logistics process. It also eliminates the issues of paperwork, auditing, billing, training and most important, the optimization necessary for your goods to reach where they are required in a timely and efficient manner.

Flexibility and scalability: with the third party logistics services, you do not need to be worried especially if your business is seasonal having its low and high seasons. This is because you can scale for warehousing space, transportation and other logistics in accordance to the need at the moment, that is, scale upwards during the business’ high season and downward during the low season.

Reaching new markets: these services enable your business to grow into new markets. With their distribution centre and warehouses placed at strategic places to enhance swift shipping of goods to any part of the world, reaching out for new markets and growth of your business is made possible.

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