As organizations grow, there comes a time when leadership has to decide between investing heavily in internal resources or aligning with outsourced partners to meet the needs of the expanding business.
The benefits of outsourcing logistics often outweigh trying to do it all in-house. A full-service logistics provider already has the technology to most efficiently manage the supply chain, the labor force needed to meet deliveries and the flexibility to allow for scaling as the business grows. In the following sections, we’ll explore ways a logistics partner can support your company’s growth and increase overall proficiency.
One of the biggest challenges facing organizations that have hit capacity is finding the capital to continue growing. A full-service logistics partner typically costs companies a fraction of what it would take to hire drivers and a team to manage the supply chain or build a new warehouse.
Another benefit of working with a full-service logistics partner is increasing storage capacity as needed. Many organizations are often limited by how much inventory they can store in their warehouses. However, by working with a professional logistics company, it’s possible to add additional storage as needed.
Having the ability to manage storage capacity can also benefit an organization during slow months. For companies that choose to build new warehouses, there is no way to decrease costs if sales are lower than projected. However, with a partner-provided warehouse, businesses can utilize as much or as little space as they need.
When partnering with a full-service logistics partner, most people only think about the benefits it will bring their organization. However, having a reliable partner can also impact other business areas, including the company’s other supplier and vendor relationships.
Even though most manufacturers are good at forecasting and moving products, there are bonuses for working with a logistics partner that has reliable carriers. For instance, most team members at logistics companies have spent their entire careers in the supply chain industry. They have unique experiences that can help navigate challenging situations and provide guidance on improving overall operational efficiency.
Supply chain technology often makes a significant impact on the efficiency of a company. If an organization utilizes an outdated system, shipping finished products to the customer can take longer.
Unfortunately, new tools and software often come with an extensive price tag outside the current budget. Luckily, there is a cost-effective way to still reap the benefits of cutting-edge technology through a third-party logistics partner.
By partnering with a logistics company, you can access different tools, such as high-end ELD devices, to improve the accuracy of driving hours.
It’s challenging to excel at all aspects of supply chain management. Many companies have specific areas that they perform exceptionally well and others that can use improvement. While there are often plans in place to address the sluggish regions, it can take years to bring the department up to speed.
Using a full-service logistics partner is one option that allows manufacturers to quickly address problems, provide stability and put in place lean supply chain practices. These strategic partners offer a way to bridge the gap between your current and future operations without experiencing a decrease in operational efficiency.
Giving up control of any part of your company’s supply chain can be a challenging task. It’s natural to want to monitor the data and participate in all the daily tasks of operational improvement. However, working with a proven third-party logistics partner far outweighs the hesitations.
Full-service logistics partners like Classic Logistics staff industry experts that have spent decades working with organizations to boost operational efficiency.
To see how the industry-leading experts at Classic Logistics can support your company’s growth plans, contact us today and schedule your free quote.