When is the right time to outsource logistics


Presentation Description

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.


Presentation Transcript

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When is the right tme to outsource logistcs Your start-up has gained ground and is running smooth now. Your main producton actvity is outsourced. The business of receiving warehousing order fulflment and shipping how about logistcs in case you feel that logistcs and its components have now become a tme- consuming botleneck it is tme you contnue 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 tmes it is a good idea to let experts focus on their area of expertse in your business. It is frst required that you understand the need of your company to cut costs and if there is potental in the process for cutng costs. In case of an afrmatve you must look forward to outsourcing. Outsourcing of a business aspect can drastcally reduce expenses such as rentng warehouse space paying additonal staf packaging etc. You can bring in a logistcs company to take care of all this. This means that all those operatons which were being handled under your core operatons will now go to some ofsite safe and secure facility for which you will not have to pay any rent. Besides this the expertse 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 tme you have spent on logistcs planning in the past month. Can you now imagine putng all that tme and energy into innovaton for your enterprise in its core directon Before you take the call on outsourcing let us try to understand whether your enterprise requires outsourcing.

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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 tme for you to introduce 3PL into your business. This means that whenever there is a disrupton in your supply chain and logistcs your third party logistcs provider such as Gat logistcs will be in a good positon to reroute shipments as well as handle recalls and repairs. His handles a large porton of consumer response for your business. Savings Most of the cost savings and efciency that your company is asking for can come from not developing in-house warehousing and shipping and letng 3PL handle it for you. There sure are ways that an in-house operaton can innovate to increase efciencies. Yet to do this you will have to handle expenditures on your part. Most ofen this is not a good idea. Therefore you should let an outside frm 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 revolutonize the industry with the product that you make and not care about the source of the storage solutons for your product. This saves a lot of tme for most importantly focus of your team members and human resource management

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For most practcal reasons third party logistcs outsourcing has more highs than lows for businesses. The idea is to understand the requirement for 3PL outsourcing at the right tme in your company’s growth story. Source : htp://blog.gat.com/when-is-the-right-tme-to-outsource-logistcs/

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