If you don’t already outsource some or all of your supply chain to a third-party logistics (3PL) company, making the move can seem like a big step full of doubt and uncertainty.
As your business grows, you create and nurture your supply chain to best meet the requirements of your business and its customers. Your supply chain is uniquely yours; an integral part of your business.
As such, the idea of outsourcing to a logistics company can raise a number of concerns.
- Can you be confident in the 3PL company to deliver in accordance with the standards of your business?
- Will you lose day-to-day control of your supply chain?
- What are the costs?
Unless and until you get satisfactory answers to these questions and any other concerns you have, outsourcing your logistics will not seem like a viable option.
But don’t expect the answers to magically appear. If you don’t seek them out, your current supply chain could become inefficient, or worse, and you may not realize it.
To help address their concerns, every business, especially those seeing solid growth, must constantly assess their current logistics functions for efficiency and cost effectiveness.
It means finding answers to a different set of questions.
- Is your current supply chain efficient and cost effective? You should track your logistics, warehousing and distribution costs on a regular basis. When you do, you will spot trends that clearly indicate problem areas.
- Are you losing focus? While every business hopes for growth and expansion, it’s not always easy to manage. And inefficiencies due to growth can creep into your processes unnoticed until one day an inordinate amount of your resources are being spent on maintaining your logistics and not on your core business.
- Can you quickly find a better option? Even if you answered ‘yes’ to the first two questions, that doesn’t mean the solution will be fast and easy. You need to be certain that whatever solution you choose will get your business on track and ready for continued growth.
Choosing a Logistics Company: If you have identified issues in your logistics functions, the right 3PL company will not be an added cost, but a boost to your bottom line. Your 3PL partner should address your concerns, give you confidence in your supply chain and let you get back to what you do best.