What's Your Goal? Outsourcing Series Part 2

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 uncovered what a logistics provider should be able to do for you.  Today we'll talk about different levels of outsourcing.  In our next and last part, 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 providing steps to help you determine which provider can best serve you today and tomorrow.

 

After determining that outsourcing your logistics is the right choice for your company, now the task of determining what level of logistics support is going to work best for your company.  When it comes to partnering with a provider you should have options about what level of involvement they will have with your business.  The intricacies of your project's personalized plan can vary greatly.  As an example we'll look at three general levels today.  The best guide to determine how to proceed will always be your project goals.    

 

Goal 1: Manage your distribution costs.

Logistics Support Needed: Your 3PL will coordinate your tactical functions.

Result:  Short term results will be produced due to accomodations of volume fluctuation through multipile resources, expert consolidation, strategic location, and access to value added services. Although savings are realized, the potential for additional savings can be developed with further investigation of services.

Goal 2:  Manage distribution costs, increase revenue,decrease operating costs, and decrease personnel expenses.

Logistics Support Needed:  An experienced logistics provider who can assist with forecasting, analytics and staffing as well as your day-to-day tactical functions.

Result: Alignment of your company's growth plan with skilled resources to execute and support that plan.

Goal 3:  Manage distribution costs, increase revenue, decrease operating costs, decrease personnel expenses, reduce capital investments, gain access to new markets, decrease development costs.

Logistics Support Needed:  A best in class Warehouse Management System and Transportation Management System (See sidebar).  Your data is fully visible at all times, integrated into your system to achieve seamless communications between your logistics provider, your clients and yourself.  Collaboration with industry experts who are also assisting with forecasting, analytics, staffing and your day-to-day tactical functions.

Result: A comprehensive partnership that will not only sustain but encourage year over year growth and efficiency.  

Of course, everyone wants to know what these results are going to cost.  How is outsourcing going to save your company money?  An experienced supply chain management provider will be able to customize the right program for the right price.  How?  Companies like Nexus will look at your needs and help you choose the services that you need (to be cost effective) and leave services that would be extraneous on the table, because they wouldn't be the best use of your resources.  Nexus knows that your growth means ours, so your success is always our priority.   

In our final installment we'll discuss the steps to selecting the perfect provider to match your needs, what to expect, and what your on-boarding process should look like.   

We'd love to hear about your goals.  If you are ready to discuss the results an experienced provider can realize contact us today!

 

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More news!  

Nexus Adds Accellos TMS to Powerhouse Technology Suite

Nexus announces addition of Accellos Transportation Management System to their IT technologies.  Terri Bennett, Chief Information Officer, says, "The acquisition of the Accellos TMS system furthers our ability to integrate with our client systems as well as support the growth of all parties."  

Key Accellos TMS Highlights:

- Cusomizable triggers for e-mail Alerts and EDI Transactions

-Skytrack and Saferwatch integration

-POD Image Management

-Carrier Compliance and Performance Tracking 

To learn more about how the Accellos WMS + TMS suite can work for you, contact us today.