Outsourcing non-core competencies just makes sense. It provides you with more flexibility, expertise with no associated investment, and ultimately, a driver for your bottom line. Clearly, this is why outsourcing has now become a widely accepted practice across many industries. Of course, most companies understand why they should outsource, but less clear is what they need to outsource. Our advice is based on common sense – consider outsourcing if you focus a lot of time, energy, and money on an activity that is not your core competency.
One area that has traditionally gone under the radar within companies, but is gaining acceptance as an outsourcing option, is transportation management (including International and Canadian freight services).
Sure, many companies outsource various functions of their business, including administrative function, IT, and fulfillment. But they often overlook the most important part of the process. That is, getting the order to the customer’s home.
Because the company bears the ultimate responsibility for delivering packages to consumers, companies are starting to look at their options more and more. And they are finding it critical to examine various transportation management options.
Transportation management is usually kept in-house because it appears to be a simple process. The package has been organized for pick up. However, getting the package to the consumer is the difficult part. By examining transportation management and trying to determine how to be more effective in the marketplace, companies are utilizing transportation management providers for their expertise.
The most significant reason to outsource transportation management is to receive volume discounts.
It’s pretty clear that as a specialist, we will have significant buying power in the marketplace and will receive deep discounts for purchases. Because these discounts are based on volume, they will likely be much greater than discounts any individual company can receive on their own.
By outsourcing logistics, companies are able to partner with a provider that has already made the investments in the necessary IT.
In other words, you naturally benefit from this investment without having to sacrifice anything. So, you get the infrastructure, expertise, and industry advantages that you simply could not secure on your own.
As well, a good transportation management provider will not only have specialized logistics industry knowledge, but they should understand your business. Reputable providers will normally share clients’ names and their successes. This will give you valuable insight into the provider and possibly provide you with solutions you haven’t considered yet.
Outsourcing your transportation and logistics management needs can offer you savings in time, money, and resources. This can significantly contribute to your overall success and ultimately, your own customer relationships.
Contact FMi Logistics today to find out how we can help you.