The Decision To Outsource


These days there seems to be a lot of talk about choosing the right logistics provider.  Of course this is an important business decision that must produce a beneficial relationship with a strategic partner, or cause a break in your supply chain.  But, what if you aren't even sure if you need a logistics provider?  Is outsourcing even for you?


In our new three part series, we are going to cover the basics to help you decide if outsourcing is the right choice for your company.  In the first part we'll cover what a logistics provider should be able to do for you.  In the second part we'll talk about different levels of outsourcing.  Lastly, we'll cover how to make the final decision, what to look for in a provider and the steps to take to locate the best provider for you.  Essentially- determining which provider can best serve you today and tomorrow.


Part 1- What Should A Logistics Provider Be Able To Do For Me?


Are you often asked/asking questions like:

 How is our shipment accuracy to our customers?  Can we improve?

 What are we doing to stay current with industry trends and cost saving technologies?

Do we have resources allocated to logistical studies and savings opportunities?

Are our inventory levels in line with product demand?  

What is the cost savings potential if a leaner supply chain was in place?

If any of these questions give you pause, outsourcing your logistics is probably an idea to explore.

A quality supply chain management company will be able to provide metrics regarding on-time receiving, shipping and delivery, receipt processing time, inventory accuracy, order picking accuracy, space utilization, productivity, damages, accident rates, volume trends, turns performance and compliance.

An experienced logistics provider has the team to accomplish these and other important tasks.  There is an industry wide talent shortage in logistics- there are six job openings for every supply chain management graduate.  A good supply chain company has already attracted and trained those individuals, adding to your team of experts.  

A good logistics partnership will save you money through providing creative ways to cut costs upfront as part of their services.  A great logistics partner will save you money through cost avoidance.  Assuming that your new relationship with your logistics partner means your business is flourishing, your provider is also equipped to help you avoid any "growing pains".  They will see costly "pot holes" on the road ahead and assist you in diverting your course before you hit them.  Ways a logistics provider might do this are through high level and granular analytics, years of experience and their connections in the supply chain industry.  In one case, Nexus was able to save our customer over $10,000 because of our relationship with the local rail yard and one paper company $100,000s with our expert retail compliance knowledge.  Those are some serious pot holes!

Finally, outsourcing to a provider who has employed high powered WMS, TMS and EDI systems means you have access to tools that can cost millions of dollars, all while they are saving you money.  

So, if you need measurable results, cost savings and avoidance, and access to high powered management systems outsourcing your logistics needs to a trusted team with 35 years' experience may be the right choice for your company.  We'll make it easy to take the first steps with our evaluation process and Client Implementation Process.