LIVING LOGISTICS BLOG

    Yes, It Is a Great Idea.

    May 7, 2021 9:00:00 AM / by Ana Rosa Arana

    6 Reasons to Outsource Your Supply Chain Services. 

     

    Many companies struggle to decide whether outsource their supply chain services or not. The decision is often hard to make, but once you take the first step into it; you won’t want to turn back. 

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    Here are 6 reasons why outsourcing your supply chain is a great idea.  

     

    1. Freedom to Focus on Critical Operations

    Instead of trying to perform logistics services in-house, outsource to a company that has in-depth expertise and experience in carrying out logistics operations with ease. This 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 a short amount of time. Outsourcing logistics back-office tasks to professional vendors 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 while delivering a great 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 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 because 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. 

     

    If you are still wondering about trying this solution, we invite you to contact our experts. Visit geodis.com and discover the world of possibilities that GEODIS can offer to your business. 

     

    This article was edited by Ana Rosa ARANA - anarosa.arana@geodis.com.

     

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    Topics: Supply Chain Management, Supply Chain Optimization, Solutions, Expertise, Business Excellence

    Ana Rosa Arana

    Written by Ana Rosa Arana

    Ana Rosa joined the GEODIS family in September 2016 as part of the BP ILVC team. She's known for her contributions to different projects at the AMS CoE, and it's now part of the MKT & VE team. Ana is passionate about arts, communications, and design. Reach out to her at anarosa.arana@geodis.com

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