Logistics outsourcing: what is it all about and when it proves useful?

At present, in the world of business saying „time is money” means something special. Today, more than ever before, customer service speed is crucial. To be successful in competing with other entities which offer the same solution, you need to rely on logistics outsourcing. See what it is all about and for whom it is useful.

What is logistics outsourcing?

Logistics outsourcing is concerned with entrusting management of some or all logistics processes to the outside partner. The most common partner is a large logistics center. Such an entity can undertake a wide range of actions at nearly any stage of the supply chain on behalf of its customer.

– It is not only about warehousing products or sending them to the final customer – explains OEX E-Business expert. – A modern logistics outsourcing can cover a string of additional services, starting from receipt of goods in the warehouse from the outside distributor and inspecting their quality, through labeling, customizing, and ending up with customs handling or final customer service, including receipt of returns or factoring – explains.

This makes more and more companies from various fields of business, both in B2C and B2B, use logistics outsourcing.

What are the benefits of using the logistics outsourcing?

Primarily outsourcing lets you optimize logistics processes – by boosting them and lowering costs of tasks related to transportation, warehousing or completing and sending packages to the final customer.

Enterprises which choose to make use of this service:

• do not have to run their own warehouse or do it to a certain extent – this lets them eliminate redundant surface use costs or staff employment expenses,
• do not need to worry about instant delivery of goods to the final customer – this is possible due to perfect location of logistics centers and the fact that they often operate 24 hours a day,
• considerably reinforce their business potential – they can concentrate on winning new business partners as well as improving their products or services, being sure that logistics processes are correct,
• raise the quality of customer service – this is feasible thanks to improvement of deliveries and lower likelihood of making mistakes when completing or packing the order.

Importantly the range of services rendered under the logistics outsourcing can be flexibly adapted to needs of every single company. You can arrange with your partner who is going to be responsible for particular stages of the process – so that everything is smooth, economic and beneficial to the final customer.

Who logistics outsourcing is for?

Contrary to appearances, such services are not intended only for the strongest players. A rising number of small and medium-sized firms make use of them – for example online stores. In this case optimization of costs and logistics process time is priceless.

Such a cooperation can also be fruitful if you plan to be present on the international market. The experienced logistics partner can organize goods transportation and deal with customs and completing all formalities so that the flow of supplies remains smooth and free from obstacles.

As you can see, it is important that you get familiar with benefits arising from logistics outsourcing – the investment in such a cooperation may help you achieve your business goals easier.