Logistics is part of a business’ operations that can be completed in-house or outsourced to a third party logistics partner. If you’re curious about whether outsourcing is the right route for you, we’ve outlined the pros and cons to help you decide.
What is Logistics Outsourcing?
Logistics outsourcing, also known as contract logistics, is where a business uses a third party company to deliver logistics operations, whether that be partially or fully. They usually deliver a whole range of logistics services such as warehousing, storage, transportation methods, processing systems and more.
Logistics partners are extremely experienced in their field, with a whole team of specialists behind them to manage the entire process for any kind of business. A service level agreement is signed to ensure all responsibilities are covered by the third party partner for complete peace of mind.
Advantages & Disadvantages of Outsourcing to a Logistics Partner
If you’re considering outsourcing your logistics for your business, it’s a good idea to familiarise yourself of the benefits and drawbacks of using them, so you can gain clarity.
Pros of Outsourcing to a Logistics Partner
Save Time
One of the main benefits of outsourcing your logistics is saving a huge amount of time. Logistics can be quite a time-consuming task which can lead to losing focus on other jobs that are important to your operations and compromising quality. Thereby, you can free up more time by outsourcing to a logistics partner, so you can concentrate on other activities as well as future growth.
Utilise Expertise
A third party logistics company is dedicated to logistics operations and normally has many years’ experience in the field. This means you will have access to their knowledge and expertise that you may not initially have. If they are reputable and reliable, they have probably worked with a wide variety of companies across different sectors and are familiar with specific requirements of specific types of businesses. This will enable streamlined processes throughout every delivery.
This experience is also reflected in the handling of export documentation and compliance. When outsourcing your logistics, you want peace of mind that all the paperwork is correct and all legislation is met, so you avoid penalties and fines. With this, your partner will take on this responsibility, so it saves you the stress and hassle knowing that it’s all in safe hands.
With over 45 years’ experience in the logistics industry, you can rely on Cross Country Carriers to be your logistics partner. Contact us today to see how we can help you.
Cost-Effective
Of course, outsourcing your logistics will come at a price but it will still be cost-effective in the long run. Long established logistics partners can often receive competitive rates on warehousing, packaging materials and other services which can ultimately be passed onto you.
As well as this, outsourcing instead of hiring an in-house logistics department saves huge costs on space, PAYE, equipment, insurance, etc. All these costs add up quickly, whereas using a logistics partner instead, you can capitalise on their existing resources and only use exactly what you need.
Scalability & Flexibility
Another benefit that also affects cost-effectiveness is the ability to scale your business. Knowing that you have a reputable logistics partner behind you, you can rest assured that they can support your future growth and their services can adapt to your increasing needs.
Whether its entering new markets, keeping up with changing trends, or adjusting to seasonal demands, their extensive facilities and resources can scale up or down accordingly. Instead of overworking or underutilising your own logistics department, outsourcing this to a resilient third party will give you confidence that your business is always supported.
Cons of Outsourcing to a Logistics Partner
Loss of Control
We understand that business owners can find it hard to relinquish control to a third party, especially at the start of a new working relationship. The trust has to be built and you want to look after the client relationships you have. It may seem like a risk, but as mentioned above, logistics partners have the experience to understand your business and the expertise to make sure you are always compliant.
At Cross Country Carriers, we have grown significantly over the years to support our client base. This success cements our reputation as a logistics partner you can trust with the products on your shelves, urgent orders and a seamless operation. We know communication is key and we are always on hand for support at the other end of the phone.
Disconnection Between Clients & Agents
A third party logistics company is basically the middleman between yourself and the client. Whilst it may seem like a barrier, all you need to do is choose a logistics partner that is communicative and reliable.
As mentioned above, an experienced logistics company will understand different business’ needs and adapt their services to align with your requirements. This ensures streamlined processes and will present themselves as a positive extension of your team which your clients will appreciate.
Strategic Misalignment
Choosing to outsource your logistics may feel like inviting a stranger into your business that doesn’t understand your goals and objectives. During your search, make sure to look for a partner that takes the time to gain a firm understanding of your value proposition.
Strive towards the same aims and be confident that they can meet and exceed your specific KPIs. At Cross Country Carriers, we take the time to get to know you, your business and exactly what you want to achieve so we can do the same for you. We are part of one team, all with the same targets.
Choose Cross Country Carriers as Your Logistics Partner
There are definitely more benefits than drawbacks when it comes to outsourcing to a logistics partner, especially when you know you can trust them. If you’re looking for a reliable partner, Cross Country Carriers are here to support you and your needs. Contact us for more information today!
