Third Party Logistics - Is It Worth It?


Third Party Logistics - Is It Worth It?

It’s reasonable to wonder if third party logistics services are truly worth it for your business. After all, you might have concerns that it will take some time to start up third party logistics for your organization. Third party logistics companies vary in quality and in terms of what they have to offer your bottom line. Plus, trusting third party logistics providers means giving a consultant access to a sensitive and critical part of your business.

However, Source Consulting has discovered that virtually any business can benefit from using a quality third party logistics management. When you select third party logistics companies with a proven record of success, you stand to gain annualized savings and benefits that will give you a true competitive advantage. The time that you invest in comparing third party logistics providers will pay off in terms of optimized processes and higher levels of efficiency.

Here are some things to consider when deciding whether third party logistics management is worth it:

Is Your Logistics Operation Growing?

Are you engaging in more logistics transactions this year than you did last year? What’s the outlook for the coming year? Have you been able to forecast your operations needs three to five years in the future? If your business is healthy and robust, then odds are you will have to continue growing the scale and complexity of your logistics. If you expect that your logistics will be growing steadily over time, then it is wise to consider optimizing your operations in this area.

Do You Have Carrier-Level Expertise?

It is possible for some organizations that already leverage great logistics expertise to capture some of the benefits that outsourced logistics can provide. However, at the very least, you will need help from former carrier executives who can help you to optimize your supply chain at every level. Frequently, understanding the kind of erroneous charges that carriers ascribe to your account requires insider knowledge, as does negotiating the best contract possible.

Do You Plan to Go Global?

While nationwide logistics can be very complex, international and global services are even more challenging. Building a global brand may start at home, but it requires the same level of excellent customer service wherever your brand may find itself. In order to continue building your brand with every international move you make, you will have to create a savvy network of local and regional carriers who can meet your needs. Outsourced logistics can provide the best options.

If your business is successful, you will inevitably run into bigger and bigger logistics challenges. Meeting these challenges successfully is far more likely when you have the appropriate industry know-how from the beginning. It is critical that your enterprise begins optimizing logistics early because every cost saving initiative you implement successfully will reverberate across your organization as it continues to grow. Missed opportunities will also have huge implications!

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