Logistics services are necessary for any business involved in the transportation of goods from one point to another. Managing the operations on your own can prove to be overwhelming, especially if you have other pressing matters on hand.
Outsourcing your logistics services to an external service provider or a Third Party Logistics (3PL) company can prove to be a wise decision in the long run. Logistics service providers like Flex Logistics deal in services such as transportation, warehousing, delivery, and other related operations. We are growing rapidly by day, offering superior outsourcing strategies and transition plans at cost-effective rates. They work hard for their clients and make sure that they provide customized logistics services, as desired by our clients.
What is Logistics?
Logistics is the overall management of how products are obtained, stored, and shipped to the customers. It involves the planning, execution, and tracking the movement of these resources to ensure their quick arrival to their end destinations.
Running an effective e-Commerce logistics team includes a few steps such as:
- Finding the right suppliers and distributors for your business.
- Discerning their accessibility to your clients and their efficiency in delivery.
- Forming business relationships and discovering the most cost-effective solution.
Most e-Commerce companies, especially these times, choose to work with an external service provider to keep pace with the market demand.
Outsourced logistics representatives are effective in overseeing your operation so that you can do other essential tasks in your organization.
What Does Logistics Outsourcing Mean?
In the past, for years people did things in one particular way. Companies managed their own production, transportation and logistics, all in house. These days, it has become more common for companies to seek out for a third-party logistics provider.
Now a days outsourcing to third party logistics providers (3PLs) is a fairly standard practice across many businesses. There are plenty of logistics operations of a company that can be taken up by a 3PL. Few core services a 3PL may provide are:
- Packing
- Warehousing
- Transportation
- Administrative management
These are just some basic services. There are many more.
Benefits of Outsourcing Logistics
Logistics outsourcing represents a solution for many organizations. By partnering with a third-party logistics company (3PL), companies reduce risk and gain access to dedicated expertise in shipping, supply chain, customs, and import-export processes.
If you plan to outsource your logistics, it’s critical to align yourself with an experienced, trusted team that will work with you to ensure success. Let’s look at some typical logistics outsourcing benefits.
Increased Focus on Primary Operations
Outsourcing your logistics processing helps bring about a significant transformation in your business workflow while streamlining everyday operations.
Outsourcing logistics data processing provides the speed and accuracy required to transport items to the right place while reducing shipment delays.
This, in turn, frees internal resources from manual tasks and shifts the core focus to primary shipping processes. Not to mention that data entry and the processing of shipping documents is no longer delayed or a pressing burden on your current staff.
Outsourcing further helps to establish an optimized process to handle invoices, shipping orders, bill of lading and more, in an efficient and standardized manner. As you improve and expand your logistics operations, your outsourcing company scales up their services to match.
Reduce Back-Office Work
The majority of outsourcing agencies have sufficient manpower and systems already in place. Because of this, they can process thousands of bills and audit them appropriately within a short time.
Outsourced logistics partners can help run your back-office services smoothly. They can help reduce the tasks that your in-house team needs to perform and raise your overall productivity.
Enhance Customer Satisfaction
In an increasingly competitive market with more and more options available to customers, maximizing customer satisfaction is increasingly important. Outsourcing logistics can improve customer satisfaction by reducing shipping costs and fees along with reducing shipping time.
Customers expect to receive their products quickly in today’s fast-paced environment, and shipping time can be a significant factor that plays into their decision of who to give their business to. To keep up with high expectations, many 3PLs can offer next-day or 2-day delivery at little to no extra cost for customers.
Relationships
3PL can help with customer relationship as well. When we hire a 3PL, we look at a long-term solution for your firm. Usually a company’s branding is adopted when dealing with customers. This includes logo, uniforms etc. A 3PL performing at a high level representing ones brand positively affects ones customer relationship.
On the other hand when we hire a transportation broker, he only represents himself. So the focus is solely on getting freight from Point A to Point B. Whereas, a 3PL stands to benefit from a positive relationship with the customer.
Access to Expertise
Outsourcing provides you with the best transportation solutions from industry professionals. 4PL teams have a breadth of experience with different markets, processes, and technology. Such expertise would take a long time and prove more costly to develop in-house.
Furthermore, logistics operations come with a lot of turbulence. Economy and industry disruptions, capacity fluctuations, etc., are the norm. So, it can be difficult for a company to keep up, especially one whose core competency is not logistics.
Logistics outsourcing thus proves very helpful in managing your supply chain. They have the data and resources to derive workable solutions quickly. So, your company would remain at ease, confident that your supply chain is in capable hands.
Access to Technology
This is the age of digital logistics. A 3PL brings with it specifically designed, trusted, and ready-to-use systems and processes that can manage the end-to-end logistical process on a single platform. Most of the 3PL service providers are also open to customizing or integrating their digital platforms with that of the organization they work with. This flexibility offered by a 3PL not only helps the organization bridge the gaps in its systems but also helps it to do it at a comparatively lower cost.
Cost Reduction
When you decide to work with a 3PL company, you automatically turn all the fixed costs into variable costs. That’s because you don’t have to pay for unused space or services, hire warehouse workers, or even run a warehouse, for that matter. Every month, you receive a clear settlement comprising all the services you utilized in a given month. Cost-wise, it’s the most effective logistics strategy.
Value-Added Warehousing Services
Value-added services are also on the rise due to e-commerce. This can include a wide array of services, including specialty packaging, inserts, kitting, returns, warranty management and other customized services.
Flex Logistics manages and performs multiple operations to achieve one goal: to efficiently move your product from the time of arrival to its final destination—on time every time. We have worked with a wide variety of customers, handling products and providing warehouse and logistics services for industries such as food grade, manufacturing, retail, and medical ingredients, among others. Whether you need repacking, labeling, kitting, or any other special project taken on, we have the experience and expertise to manage any supply chain challenge.
Scalability
By contracting a 3PL or other partner for logistics outsourcing, companies can scale up their operations, getting more done without hiring new team members. It also allows you to cut back quickly and easily on your logistics services and the costs associated with those services without laying anyone off.
When the economy is uncertain as it is now, outsourcing is an ideal solution for logistics since it doesn’t require a large capital outlay. You can pay for the logistics services you need at a given time and ramp operations up or down quickly and easily, allowing you to scale your logistics operations with no drama.
Outsourcing also provides companies the opportunity to break into new markets without developing logistics operations to service the market. The right 3PL already has knowledge and connections in the new market, allowing them to offer more efficient logistics at a lower cost than most companies would be able to manage themselves.
The FLEX Logistics Team is Here to Help!
Our team understands the importance of getting your products to the market. That is why we aim to understand your business and build lasting relationships with you and your team. Whether you are looking to add a new warehouse to your existing operations, growing and need to increase your distribution efforts, or starting a new company, FLEX has the solutions to meet your supply chain needs.
Contact us today to discuss your current and future warehousing and logistics needs. We will work together with you to understand your requirements and develop a solution that will set you up for future success.