Top 3 Reasons Why You Should Outsource Your Logistics Requirements

05 Nov Top 3 Reasons Why You Should Outsource Your Logistics Requirements

Peace of mind and efficient logistics management Save time, money and effort Network growth and opportunities Whether you are a small business or a large conglomerate, you have your own business activities to do. Businesses that you are an expert in, businesses that you specialise in and activities that are central to your business.

For most people involved in manufacturing and trading, shipping and freight may not be a core activity, but it is something that needs to be done as part of the business.

Shipping, freight and logistics operations can be complex and complicated if they are not properly managed, because they require many phases of supervision, reporting, communicating with government and regulatory bodies.

There are professionals in charge of these specific activities and there are 3 good reasons why you should outsource the logistics needs to these specialists rather than deal with them yourself.

1) Peace of Mind and Efficient Logistics Movement (a) A reliable logistics service provider with expertise in all modes of transport–road, rail, air and sea–can provide cost-effective and efficient freight transport solutions, whether unimodal or multimodal, depending on your requirements.

b) They may control and monitor your order fulfilment process and arrange key business elements such as storage, distribution and delivery as per your orders without you having to micro-manage the process or have to invest in those assets.

c) They will also have a good relationship with the carriers to ensure that you get the storage you need and control freight rates using their purchasing power, which is typically complemented by their volumes.

(d) You will also be briefed on the appropriate documentation conditions, licences, permits, etc., not only in your country but also in the country of destination or origin, depending on whether you are exporting or importing, as well as on the particularities of transhipment ports enroute to your destination.

e) Advances in technology have created a new generation of freight forwarders, digital freight forwarders that use leading technologies such as IoT (Internet of Things), Big Data, Analytics, Apps to create digital freight platforms that create efficiency through new solutions.

f) These digital platforms allow the forwarder to introduce technology-based improvements in key logistics functions through various internal processes, including supply chain procurement, sales & strategic planning and customer service.

2) Saving Time, Money and Effort Outsourcing your shipping and freight needs to the right partners not only gives you full peace of mind, it also saves you a lot of time and money that you would otherwise need to spend in property and personnel overheads, accounting, supervision, possible penalties, etc.

The money saved can be channelled back to your core business.

3) Build Your Network and Opportunities A specialised logistics company, particularly one with a global footprint or network, gives you reliable access to agents and a reliable network across the globe.

Having a reliable agent not only enables you to do your business in a cost-effective manner, it also gives you the opportunity to increase your global business, which might otherwise not be possible due to a lack of reliable partners.

By choosing a reliable logistics partner and having an open deal with them in terms of your business, you can have the flexibility to grow in the area in which you need to grow.

For example, you don’t have to worry about your cargo storage space, whether it increases or decreases depending on the market. Your logistics partner can always understand the scale of your business and scale your offering up or down as per your requirement.

Note that they can do this because not only can they rely on your company, but your business depends on you.

CONCLUSION When dealing with an environment you are not familiar with, such as shipping, freight and logistics that turn out to be quite costly if not properly managed. It always pays to be safe than sorry and to leave the business to experts who have been engaged in these activities for years and who know the workings of the business.