Saturday, February 4, 2017

Does Your Business Really Need A Lead Logistics Provider?

By Douglas Bennett


As businesses seek to focus on their core abilities, more of them are now opting to outsource logistics management. This trend is expected to grow in years to come, as cost efficiency continues to gain importance. If you've been overwhelmed with the complexities that come with supply network management, hiring a lead logistics provider would make sense for several reasons.

Rather than foot the huge bill that comes with specializing in supply chain management, a more prudent move would be to outsource for better cost efficiency. For instance, the consultant could have access to resources and channels that you otherwise couldn't utilize on your own. Furthermore, you won't have to deal with complex audits, paperwork and the mistakes that often arise in these areas. In the long term, you'll be able to reduce liability and remuneration costs as you trim down your staff.

Engaging a supply chain consultant offers you the ability to scale your logistics depending on current requirements. This kind of flexibility is highly crucial, especially when your business is expanding into new markets or during seasonal busy periods, such as holidays. Conversely, it's also easy to scale downwards whenever necessary, in case business slows down. And compared to reorganizing your own supply chain operations, switching among lead logistics companies is much easier.

4PL specialists can offer your business the resources it needs to continually optimize each link in the supply network. Not only do they have the tools to restructure your operations, but they can also analyze and monitor practices to ensure commodities arrive where and when you need them. As a result, you'll benefit from reduced wait times, improved customer service and more profits.

Because every consultant will offer unique services, there's no universal structure that would suit every scenario. This makes it very difficult to create a standard metric to gauge whether one is getting the most out of their consultant. Still, there are some tips that one could use to ensure they get the most out of their service providers.

The consultant has to offer expertise that is not only relevant to your organization, but which also has the ability to adapt to your firm's growth. Additionally, hiring a 4PL company that offers a well-rounded package is also crucial. The most important elements to consider include freight forwarding, domestic transport and customs brokerage. All these points have to be taken into account. Organizations of all sizes and shapes need to nurture a fruitful relationship with 4PL consultants if they're to benefit from their expertise.

Whether you're just beginning or have been in business for several years, engaging a logistics consultant has to plug the gaps between where you currently are and where you aim to be. It's also crucial for the firms to understand these gaps and your desired outcomes as well. So besides developing quantifiable objectives, continuously evaluate the consultant's performance. You should also encourage them to keep you updated on major developments that are relevant to your entity.

Partnering with a logistics consultant could greatly assist firms whose supply chains have grown into complicated, asset-intensive networks. If you're looking to create a lean, cost effective network while achieving a high degree of flexibility and efficiency, hiring a 4PL company would be your best bet. So don't hesitate to take the leap, especially if you're looking to venture into new markets.




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