Why Outsource Logistics?

This article presents some of the main advantages of outsourcing internal logistics operations in enterprises

This is a very common question! Despite much talk about outsourcing (outsourcing), there are still many companies that perform certain activities, other than its Core Business (Business Key / End Activity) internally.

This position may be correct, especially if such activities are not exclusive and the market have enabled service providers for their execution.

On the other hand, there are several companies whose business is specifically address which is not the Core Business of your customers! In other words, providers trained to perform specific functions to other organizations services, where these are not only a support and activity end.

In the case of logistics is no different! A Logistics Service Provider (LSP) in English Third- Party Logistics (3PL), concentrates all his efforts in this segment.

See through different perspectives:

People

This means that people who work in this business are subject matter experts, both academic background (MBA, Masters, PhD, etc.) and by the professional experience. Moreover, they are caught in the middle, attending trade shows, forums, meetings and having access to channels for the sector, such as magazines, blogs, etc. Thus aware of new technologies and national and international trends. All this reflects the Solutions and Highlights offered to its customers.

For a company that outsources, there may be a considerable reduction in headcount, which reduces the need for management, space and other administrative tasks relating to people.

Equipment

There are dozens of equipment applicable in the storage and handling of materials. However, one must know what they offer and what supply or not the need for each operation. In some cases equipment and other influences in a wrong choice can jeopardize the whole operation, so it is important to understand the subject!

Processes

Having a robust process is the basis for a good transaction! You need to map all activities and to understand them in detail, so you can generate: speed, quality, flexibility, productivity, reliability, etc.

Environment / Layout

For operation you must have an appropriate environment in terms of: space (area, height, weight capacity of the floor, elevated docks, lighting, detection systems and fire fighting, security, etc.) and appropriate layout to provide reduction of movements, times lead time and better use of space.

Quality

It is what every service provider must continually seek!

One of the main reasons why some companies are afraid to outsource. It is a fact that not all providers can ensure a good level of service, so it is important to choose the right partner! This must have a QMS – Quality Management System developed, implemented and controlled through key indicators (KPI – Key Performance Indicators).

Technology

The market is constantly evolving, so new technologies emerge daily. It takes work to date and implement the new features available, both hardware as software. All this can generate greater productivity, agility, quality, lower costs and can also make a difference to the end customer!

Costs

I think this is the main factor for choosing outsourcing by most companies! Service delivery can be lower costs, everything depends on the efficiency of the logistics operator. In many cases it is still possible to replace fixed costs with variable costs, which is very positive for organizations!

The perspectives above are just some examples besides these there are several others that can be observed. Important to remember that the effectiveness of outsourcing depends on all parties involved in the steps of that change.

Source: www.administradores.com.br

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