No matter what size your business is, dealing with logistics on top of all your other departments can be a daunting task. Still, many companies try to do everything themselves, thinking they can save money and retain control of every facet of their operations while also expanding their business. This often proves to be overwhelming to a company, leading to reduced performance across the board.
At Expak we can take some of the weight off of your business operations by managing all your supply chain issues. Part of our approach is to adapt our services to meet the needs of your company. If you’re wondering about the pros and cons of outsourcing logistics, especially how it can assist your business, this article can help guide you in the right direction.
We believe there are many reasons to hire an outside logistics company. Here are five ways we believe that outsourcing your logistics will greatly benefit your business.
1. Outsourcing Helps You Focus on Your Strengths
We’re assuming you didn’t get into your particular business to worry about logistics. Though you may accept it as a necessary part of operating a company, we want you to know you have other options. Outsourcing your logistics to a third-party company like Expak not only gives you peace of mind, but also frees up time for you and employees to spend on the core functions of your business, whether that’s designing products, helping clients, or increasing your market share.
2. Third-Party Logistics Companies Have The Expertise You Need
Chances are that a third-party logistics company will be able to design systems that work better for you. Their experience in the industry, which includes the ability to negotiate better pricing, address problems, as well as to measure metrics and make improvements based on them, allows them to optimize your supply chain in ways not available to you. You’ll also gain increased visibility on your products you didn’t have before.
Expertise is gained through years of specialized experience in the field, and you can gain instant access to that expertise by employing a 3PL to handle your logistics for you.
3. Outsourcing Saves You Money
When you employ another company to manage your logistics, you’re automatically connecting yourself with better pricing and a more efficient infrastructure for your supply chain to work inside. 3PLs usually have established pricing with carriers built into their services. In addition, the optimization that a 3PL brings to your supply chain reduces cost at every step of the process. This, along with increased capacity and efficiency, saves you more money down the road.
Also, by outsourcing your logistics you’re also outsourcing your liability, meaning you won’t have to pay for accidents, repairs and labor issues related to your logistics operations. If you were running your own logistics operations, these payments could add up to be a considerable expense.
4. Open Up Options and Improve Your Flexibility
A 3PL with a national network like Expak will be able to greatly expand your options when it comes to shipping. Let’s say you experience a huge increase in the amount of customers around the country, leading to a higher logistics workload. With a 3PL in charge, you’ll be able to more easily adjust to the increase in business and get more products to more customers quickly and efficiently.
5. Your Supply Chain Will Become More Efficient and Experience Fewer Errors
You can trust that a 3PL like Expak will improve the efficiency of your logistics. By employing experts with years of experience in supply chain logistics, you’re committing to making your system more efficient. Expak has both partnerships and infrastructure in place to effectively optimize your supply chain, leading to faster deliveries and reduced errors across the board.
Expak’s expertise in technology systems and smart utilization of data help them make better decisions for your supply chain. If you want to talk about outsourcing your logistics, we’d love to chat.
