4 Benefits of Outsourcing Logistics Operations

When you have spent a long time building up your business, it can be tempting to hold on to every aspect of it so that you can retain control and ensure that everything is done just the way you want it to be.

Your logistics operation is important, as it is what ensures that your customers get the order they placed! It’s precisely because it’s so important that you can actually see huge benefits by outsourcing your logistics operations to a third party.

1. Lower your square footage requirement

By outsourcing your logistics operation, you don’t need to find room for it in your own business premises. This allows you to either stay in a small premises for longer or downsize to a small property. There are a number of benefits to basing your business in a small building:

• Smaller premises are cheaper. They are likely to have a lower rent or mortgage payment and be cheaper to heat and light. They may even come with a cheaper insurance premium.

• More investment capital. This cost-saving on-premises means that you can invest money elsewhere in your business into areas that you can grow and profit from.

• Lower taxes. Moving premises can, in some cases, can mean that you are able to lower your tax bill, depending on which state you are in. So do your research, and use your premises to your advantage!

2. Allow you to focus on growth

Outsourcing logistics operations means that you don’t need to focus your energy and resources on developing a top-notch logistics operation.

Instead, you can focus on running the core of your business. Things like strategy and marketing or product development are things that only you, with your vision for your company, can make the best out of. Use your time to focus on these areas that will really allow your business to shine.

3. Get better service

By working with an established logistics company, you will be working with someone who really knows what they are doing. This means that you are guaranteed good service and all of the benefits that come with it.

Of course, you need to ensure that you partner with the right logistics provider to realize this benefit, and it can be tough to negotiate the right deal with the right person at the right price.

This is especially true if you don’t have much experience working with third-party logistics providers (3PLs). It can be a worthwhile exercise to look into 3pl consulting, where a team of experts will assess your needs and what’s available in the market and help you broker the best deal for your company.

4. Efficiency and cost savings

An established logistics provider will be able to use their experience in the industry to operate in a much more cost-effective manner than if you were to run your logistics operation yourself. This means that you will actually be saving money overall, as well as saving time and getting a better service.