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    6 Reasons for Outsourcing your Supply Chain Services

    Oct 24, 2018 3:20:12 PM / by François Xavier Lanne

    1. Freedom to Focus on Critical Operations

    Instead of trying to perform logistics services in-house, outsource it to a company that has in-depth expertise and experience in carrying out logistics operations with ease. This in turn will help you free up your resources and allow them to focus on other critical operations.

    1. Reduced Back-office Work

    Most 4PL outsourcing service providers have sufficient manpower and the desired systems already in place. They can process thousands of bills and audit them appropriately within short time. Outsourcing logistics back-office tasks to professional vendors therefore frees up your time and increases productivity.

    1. Enhanced Customer Satisfaction

     Most service providers specialize in logistics services only. They know the domain better than others and can come up with innovative ideas and strategies to further reduce costs for their clients, as well as deliver a better experience. This leads to enhanced customer satisfaction and builds partnerships that will last a lifetime.

    1. Efficient Handling of Expenses

    Small expenditures like insurance costs, docking costs, transportation, or fixed warehouse costs are all taken care of by the logistics service providers. You do not have to deal with petty expenses, thereby freeing up your accounting department's time.

    1. Economies of Scale

    You might end up spending a lot on trying to scale up your existing team to perform logistics services in-house. However, a third-party logistics service provider can help you achieve economies of scale as they specialize only in providing logistics services, thereby being able to ramp up or ramp down services within short intervals.

    1. Efficient Real-time Tracking

    Most 4PLs are technologically adept and allow for real-time tracking and visibility of loads. Some of the more popular service providers even provide integration with WMS and ERP. By being able to track your shipments with ease, you spend less time worrying and more time focusing on other core areas.

    Topics: logistics, supply chain, visibility, supply chain management, 4PL, customer satisfaction, transportation

    François Xavier Lanne

    Written by François Xavier Lanne

    Francois has been in the industry for 12 years working in several countries becoming fluent in 3 languages (English, French, Spanish). He graduated with his Masters in Supply Chain & Project Management from Sorbonne University in Paris. He joins the Supply Chain Optimization line of business with expertise of industry trends and GEODIS’ services. Francois is the Business Development Director with over 4 years of experience in sales. Francois specializes in supply chain solution design, implementation, global supply chain operations, optimization and decision support tools and the 4PL/LLP business models.

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