SIX REASONS TO OUTSOURCE LOGISTICS SERVICES
Outsourced logistics is no longer a niche market. It is an industry that offers logistics services of all kinds, including packaging and labelling, distribution and transportation, warehousing, and procurement.
The outsourcing of logistics is a cost-cutting measure, but also a way to expand operations. It has proven useful for small companies as well as large ones. The ability to outsource means that companies need fewer employees, which in turn means lower overhead costs and more money for other things.
To get the best deal on outsourced logistics services, you should have certain information about your company’s needs. For example: what kind of product are you shipping? How often will you be shipping? What are the volume requirements? What additional services do you need? Are you planning to move or expand soon? How much space do you have available? Do you use first-class equipment and technology? What kinds of vehicles do you use now? What kind of safety features and protocols are necessary?
Outsourcing logistics can be a major expense for companies, but it doesn’t have to be. With the right information, companies can find businesses that provide personalized service at competitive prices — without sacrificing any quality or efficiency. Below are several reasons to outsource logistics operations:
1. Improve efficiency and reduce costs
Companies that outsource their logistics operations benefit from the experience, technology, scale, and operational best practices these companies bring to the table. A third-party logistics company offers shippers competitive rates by combining the volume and scale of all their freight to “buy in bulk” from carriers. 3PLs can provide logistics optimization tactics to help companies realize sustainable, long-term savings by reducing transportation costs.
2. Prioritize the core business
While creating new products, expanding markets, and growing a company, there isn’t enough time in the day to become an expert in logistics. The day-to-day execution, the strategic recommendations and the logistics operations are entrusted to a trusted partner when you outsource logistics management. You’ll also be able to free up your staff’s time so that they can focus on customers.
3. Enhance risk management
Despite the inherent risks in supply chains, 3PLs can help businesses prevent incidents and reduce downtime by mitigating incidents. The majority of 3PLs provide 24/7 monitoring and visibility to anticipate and resolve supply chain issues before they become costly.
4. Streamlining back-office operations
A majority of 3PL outsourcing service providers have already put in place the required systems and manpower. Their billing teams can handle thousands of invoices in short order. They can also audit them appropriately. Therefore, outsourcing logistics back-office tasks to professionals will increase productivity and free up your time
5. Reduction of liabilities
All interconnected carrier contracts, safety ratings, and insurance certificates are handled by logistics service providers. They usually have a back-office staff that handles invoicing variances and carrier vetting procedures. As a result, you face no liabilities, as the service provider takes care of the grunt work
6. Customize your solutions
By combining intermodal with truckload and final-mile shipping services, shipping capacity challenges can be mitigated, and customers can receive their items on time. 3PLs like TGL provide full-service logistics and have access to a variety of carriers, transportation services, and combinations of these services.
TGL is a logistics company that offers high-quality and affordable services to companies across the globe. As a logistics company, our value lies in our flexibility to provide clients with cost-effective solutions to meet their specific needs. At TGL, we recognize that each client has different needs and so our experts are always standing by to help you every step of the way. We handle our client’s freight with total transparency. By offering value-added services at affordable prices, we help them to reduce their costs and improve their profit margins.
Contact our Experts to discuss your Logistics requirements.
Email: info@tgl.ng