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Outsourcing Logistics to Improve Business Efficiency

Many businesses seek to improve their operations by improving logistics and supply chain processes. While the level of efficiency improvements will depend on the nature of your business, outsourcing logistics solutions is well worth considering.

For example, a manufacturer should be able to improve their profit margins more significantly than an importer of goods, as a manufacturer is involved with importing raw materials or parts from suppliers and transporting these items to retailers or customers. A retailer or importer has fewer interactions with the transportation of goods and therefore less room to improve their margins with improvements in their logistical systems.

There are many ways that businesses attempt to improve their logistical systems. These methods include streamlining processes, automated logistical processes, relocating plants, factories, and warehouses, or reorganising existing plants and factories. Certain businesses can improve efficiencies by training employees involved in logistical operations. One way in which to improve logistical operations is through outsourcing these functions.

Logistics outsourcing involves using an outside logistics firm to handle certain functions of your business. This process of logistics outsourcing can take several forms. One form is through hiring an outside firm to handle your delivery and courier requirements (a business same day courier). This would involve the logistics company transporting your goods, parts and raw materials between locations for a fee. Although you would incur a charge for this service, your business will likely save considerable money on the purchase or lease of vehicles and additional staff (drivers). You'll be able to hire a courier as and when required, so more able to adapt to fluctuating demand. Here are more advantages if outsourcing a same day business courier:

(1) Leaves you to focus on your business

Outsourcing your logistics to a trusted international same day courier company will not only make the process of transporting products and goods proceed more efficiently, but also enable you to focus on your day-to-day business functions. Having a dedicated logistics division might initially be a sound concept, but this would also mean that you would have to create additional tasks and jobs that might take away valuable time and resources from your core functions. Outsourcing helps improve your business stay focused as all of the delivery and transportation tasks are now delegated to the service that you hired.

(2) Greater access to technology

Today’s same day courier companies largely use the latest in both security and transportation technology. These technologies help ensure that all products and goods are accounted for and tracked accordingly while being kept secure during the entire transportation process. This technology is also beneficial for your customers as they would be able to track the progress of each of their deliveries. Here at Speedel, we're always working on ways to make each shipment flow in a transparent manner for our clients and indeed their clients. We provide a comprehensive GPS tracking system that also enables our client's recipient to also monitor shipping progress. This takes away chasing phone calls and emails as well as providing all-round transparency.

(3) Reduces risk management

Transporting products and goods will always have their risks. You have to be prepared for a host of unexpected events that might affect the overall delivery process. Outsourcing your logistics services will allow you to reduce the amount of risk management assessment that you need to do. Your logistics company would be able to do this for you and give you a more detailed report that would allow you to see all of the possible risks. They'll also provide contingency plans for each event.

(4) Reduces costs

Logistics and shipping can be a costly expense for business. Transporting products and goods across vast distances means using up a significant number of resources and modes of transportation. This makes logistics outsourcing a much more cost-effective option, as they would be able to provide the best and quickest express delivery solutions.

This efficiency allows logistics companies to transport your products much faster, as their extensive knowledge of routes helps ensure that you would be able to save time and money.

(5) Boosts customer satisfaction rates

Customer satisfaction will always play a huge factor for any business. Ideally, they want their orders to be delivered on time without any issues. By outsourcing your logistics, you will be able to provide your clients with the best express delivery solution that will surely keep them happy and satisfied. Logistics services only aim to deliver your products and goods on time which will only be good for your business’ reputation.

Final thoughts

It's best to choose a business-specialist courier too, as they will be experienced working within your industry sector and will have the appropriate expertise and insurance cover.

Another way to utilise logistics outsourcing is through a firm that specializes in reviewing your logistics systems and recommends changes to assist you in your processes. During this process, this outside consulting firm will enter your business, obtain organisational charts detailing how your business is conducted from a logistical viewpoint, observe your processes in place, and recommend changes in your business that can lead to improved logistical efficiencies. As these consultant firms have significant experience in these logistical operations, they can streamline your operations and improve the overall efficiency of your logistics systems and introduce new software that has a proven track record and can be successfully implemented in your organisation.Improving the logistics in your business should lead to visible improvements in your overall profit margins and profitability.

Consider using an outside logistics firm to capitalise on their experience in logistics and let your company concentrate on what you do best. Here at Speedel, we are a trusted courier for many businesses in industries such as aerospace, manufacturing and retail. We offer a time-critical service 24/7, 365 days a year, so can respond to the needs of a business immediately.

Have you thought about using a logistics outsourcing service or business same day courier? If so, click here to talk with us or acquire a no-obligation quote.

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