When is the right time to outsource logistics?

1. When is the right time to outsource logistics? Your start-up has gained ground and is running smooth now. Your main production activity is outsourced. The business of receiving, warehousing, order fulfilment, and shipping, how about logistics, in case you feel that logistics and its components have now become a time- consuming bottleneck, it is time you continue to read through. It is not easy to pass down an enterprise or an aspect of it when you have worked so hard on it. Yet, many times, it is a good idea to let experts focus on their area of expertise in your business. It is first required that you understand the need of your company to cut costs and if there is potential in the process for cutting costs. In case of an affirmative, you must look forward to outsourcing. Outsourcing of a business aspect can drastically reduce expenses such as renting warehouse space, paying additional staff, packaging etc. You can bring in a logistics company to take care of all this. This means that all those operations, which were being handled under your core operations, will now go to some offsite safe and secure facility for which you will not have to pay any rent. Besides this, the expertise and experience of the third party providers means that they will be providing you all these services at a much lower cost incurred. If this does not help, you to take a call, you should think about how much time you have spent on logistics planning in the past month. Can you now imagine putting all that time and energy into innovation for your enterprise in its core direction? Before you take the call on outsourcing, let us try to understand whether your enterprise requires outsourcing.

2. Consumer Response Consumer responsiveness is something that you could always use in your business. In case your business is asking for it, then it is the right time for you to introduce 3PL into your business. This means that whenever there is a disruption in your supply chain and logistics, your third party logistics provider such as Gati logistics will be in a good position to reroute shipments, as well as handle recalls and repairs. His handles a large portion of consumer response for your business. Savings Most of the cost savings and efficiency that your company is asking for, can come from not developing in-house warehousing and shipping and letting 3PL handle it for you. There sure are ways that an in-house operation can innovate to increase efficiencies. Yet, to do this, you will have to handle expenditures on your part. Most often, this is not a good idea. Therefore, you should let an outside firm handle this. Focus At last, one thing your business can always use is the capability and energy of your core team to focus on the product. This means that you get to revolutionize the industry with the product that you make and not care about the source of the storage solutions for your product. This saves a lot of time for most importantly focus of your team members and human resource management

3. For most practical reasons, third party logistics outsourcing has more highs than lows for businesses. The idea is to understand the requirement for 3PL outsourcing at the right time in your company’s growth story. Source : http://blog.gati.com/when-is-the-right-time-to-outsource-logistics/