How Outsourcing Logistics Optimises Business Performance

Particularly over the last few decades, efficient logistics have steadily become more intrinsic to commercial success. Advancements in logistics technology and techniques, surging customer demand and the rigours of an increasingly interconnected worldwide market dictate that business delivery networks need to be running at their best to ensure both survival and growth.

Technology

For larger enterprises and blue-chips, outsourcing logistics to a third-party logistics (3PL) provider has long been the solution, but in-house logistics are still prevalent amongst SMEs who believe the DIY approach is the best way to ensure costs remain manageable.

This is, in fact, somewhat of a fallacy. In most cases, SMEs will be able to find cost-effective logistics contracts that harbour the potential to revolutionise their operational performance. Here, we discuss the key areas of improvement 3PL services can offer.

Comprehensive & Customisable Services

Most 3PLs have extensive and adaptable service offerings to suit every business operation. Depending on what services a business requires, a 3PL can offer anything from minor improvements through to a full overhaul of a company’s logistics management.

For SMEs who may rely on a simple delivery operation through the likes of Royal Mail, a 3PL provider can introduce elements of the logistics cycle that the business didn’t even realise they needed, as well as fine-tuning the parts of the process they already have in place.

Increase of Operational Reach & New Market Potential

SMEs regularly operate within local markets, with a logistics operation corresponding to their market reach. Outsourced logistics can offer access to resources that allow a localised business to expand its market offering beyond its current service area and as far as required.

B2B specialists Tuffnells offer international delivery services that can help take a business to the next level, utilising over 100 years of experience to provide access to new client markets both nationally and worldwide.

A Major Administrative Weight Lifted

In-house logistics operations place a significant strain on the back-office operations of a business, consuming notable manpower, time and spend to maintain efficient affairs.

3PLs offer the expertise and resources to remove this huge administrative burden, allowing a business to focus its own resources on critical operations, whilst adding specialist knowledge to the logistics process and reducing their liabilities.

Enhanced Consumer Experience

3PL providers generally specialise in logistics and logistics alone, with the entire enterprise devoted to developing and providing the most efficient, cost-effective and optimised supply chain possible.

SMEs that place their logistics burden in the hands of a 3PL will benefit from quicker service, better visibility and a continued drive to improve the process through actionable data. These benefits align with the demands of the customer, meaning a business can expect a boost in customer satisfaction, which in turn promotes brand loyalty and repeat custom.

With increasing competition in the market, logistics providers are looking more towards the SME market to engage with new business. 3PL contracts are becoming ever more accessible for smaller companies, and an optimised logistics operation could be the key to taking a brand to the next stage of its development.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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