Blog Details

Logistics services are very important for any business into the transportation of goods from one place to another.  Managing the entire set of operations by oneself can prove to be too complicated and demanding, especially if you have other issues on hand. As the costs of transportation related to logistics increases every year, it is only fair to think of outsourcing your logistics needs to a reliable company, thereby reducing costs significantly.

Outsourcing your logistics services requirements to an external service provider or a Third Party Logistics (3PL) company can prove to be the wise decision one can make in the long run. Such logistics service providers mainly deal in services such as shipping, warehousing, transportation, delivery, sourcing, personal container, procurement and other related operations. They are growing rapidly by day, offering superior outsourcing strategies and transition plans at cost-effective rates. They are keen on providing customized logistics solutions as desired by their clients.

7 Reasons Why You Should Outsource Logistics Operations

There are many reasons to outsource logistics services, but you first need to understand how outsourcing will affect your business and whether it will save you costs or not. Some of the main reasons to outsource logistics services include –

1. Freedom to Focus on Critical Operations:Instead of trying to perform logistics services by oneself, its important to look out for the right company that has in-depth expertise and experience in carrying out logistics operations with ease. This in turn will help you free up your resources and allow them to focus on other critical operations

2. Reduced Back-office Work:Most 3PL outsourcing service providers have sufficient manpower and the desired systems already in place. They can process thousands of bills and audit them appropriately within short period. Outsourcing logistics back-office tasks to professional vendors therefore frees up your time, reduces heart attack and keeps the wheel of your business running.

3. Intensified Customer Satisfaction:Most service providers specialize in logistics services only. They know the domain better than others and can come up with innovative strategies to further reduce costs for their clients, as well as deliver better experience. This leads to enhanced customer satisfaction thereby builds lasting partnerships

4. Reduced Liabilities and Efficient Handling of Petty Expenses:The logistics service providers help to manage all inter-connected carrier contracts, safety ratings, and insurance certificates. More often than not, they have a back-office staff ready to work with invoicing variances, carrier vetting processes, etc. This means you stand to face zero liabilities as all the grunt work gets taken care of by the service provider .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

5. Economies of Scale:You might end up spending a lot on trying to scale up your existing team to perform logistics services by oneself. However, a third-party logistics service provider can help you achieve economies of scale as they specialize solely in providing logistics needs, thereby being able to ramp up or ramp down services within short intervals

6. Efficient Real-time Tracking:Most 3PLs 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 improving your business

7. Other Relevant Benefits:
   • Good warehouse management system (WMS) ensuring safety of your goods
   • Control remains with you, the client
   • Efficient and timely delivery of goods
   • Transparent with dealing with clients
   • Easy outsourcing operations process with duly signed documentation

 How to Select the Appropriate Service Provider?

Once you decide to outsource logistics services, you need to spend time identifying the right service provider. Then, you need to make a detailed outsourcing plan with the service provider of your choice and get started. Specialist logistics service providers or companies that only specialize in providing logistics services, usually have detailed knowledge about transportation management services, customs brokerage, clearing, logistics consulting, freight forwarding, logistics information systems, warehousing, and other related domains. Some of the factors to consider include –

• Review critical aspects like gap analysis, cost analysis, supply chain operations, and feasibility of outsourcing, among other aspects

• Identify the service providers’ expertise – number and capacity of warehouses, transportation system, procurement process, customer service channels, etc.

• Check if major logistics processes such as pre-receiving, receiving, inbound inspection, pick up and drop, etc. are in-place, and to what extent

• Perform a competitor analysis for cost-to-benefit ratio and check their customer interaction levels, back-office support, exceptional incidence rates, performance index, etc.

Choose Main service logistics for Streamlined Logistics Back-office Services

With over 8 years of experience in handling diverse back-office operations for logistics, Main service logistics can help you move ahead with logistics services. We differentiate ourselves by adding value to your business through streamlined and inventive processes. We place paramount importance on easy documentation, security, quality, and faster delivery times. By partnering with us, you stand to gain from the following –

• 100% compliance with state and federal DOT regulations
• Zero risk and liability
• Professional screening for all logistics team members for further peace of mind
• Advanced infrastructure and technological systems in place to ensure valuable time is not lost in paperwork
• Cost savings and streamlined operations