5 Reasons You Need To Outsource Logistics Management

Logistics Management will make or break your supply chain.

In the current business economy, optimization means more than ever before, as more and more of your competitors find ways to leverage the same – or similar – properties you use to get your products and services to clients and consumers. The most important facets of your business demand the full attention of your resources to keep abreast of the growing demands, which can tend to leave logistics management as the last man out. As such, there isn’t a better reason to outsource this crucial aspect of product delivery to the experts, in the interest of accomplishing a duality: freeing up your resources, as well as optimizing the delivery. Consider the other benefits of outsourcing logistics management that inevitably develop:

1. Risk-reduction. The importance of going with a company that works exclusively in logistics management cannot be understatement. Being that the totality of their company efforts goes towards this, they can afford to provide the highest levels of carrier contract management, as well as greater carrier scrutiny. Insurance certification and Department of Transportation safety ratings are handled better than the average shipper, who’s struggling to keep up because logistics management isn’t their core business purview. (Source: University of California, Irvine)

2. By outsourcing logistics management, you go with a company that has a huge log of carriers, as well as a private fleet to meet the demands of its many clients. Just like wholesale products, this naturally reduces the price when compare to the run-of-the-mill shipper. The cost savings that come from exclusivity allows more modern equipment to be purchased for transportation and delivery.

3. Not only do you save yourself the out-of-pocket costs for a (probably subpar) transportation system, but outsourcing allows more advanced technology – because of the diminished overhead of the exclusive shipping company – that can be used to provide you with real-time updates of your shipped products. Get these updates right on your mobile device if you choose.

4. The economies of scale allows you access to more carriers; given the exceptionally low overall prices you pay out when you outsource to a company dealing exclusively with logistics management, to get even greater access than you would otherwise be able to afford is a real boon to the end-users and your company.

5. The most important resource that outsourcing logistics management frees up, as touched on from the start, is time. Since time equals money, it also relieves your business of expenditures for lower-quality service, because your in-house team couldn’t hope to simulate the efficiency and range of contacts of a carrier company that works exclusively in this field. It absolves you of the need for in-house personnel for payment processing, and the headache of necessary audits to ensure accurate rate charges by carriers.

There’s a reason why the numbers on business done by companies that work exclusively in logistics management are so high in recent years (to the tune of hundreds-of-billions of dollars); given the money and time they save companies like yours, while also keeping the prices down, the bandwagon is steadily grabbing ever more clients.