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Outsourcing logistics: pros and cons
Establish your own logistics system is not easy, especially when it comes to small or novice companies. Sooner or later any enterprise managers are faced with the choice: to invest huge sums in the creation of their own vehicle fleet and staff of specialists or rely on a third party?
In either of these solutions there are both positive and negative moments. Let us consider them.
Outsourcing logistics implies presence of a third party in the logistics processes and even complete transfer of work to third parties. Intermediate party can be presented by either one company or a group of companies. Logistic operators are flexible in their offers and it is not difficult to choose the optimal one.
To equip your own vehicle fleet, hire or train specialists is a costly task both in time and in funds. And it is not always possible to achieve maximum efficiency. It’s another matter to ask for help from a company that not only has experience, but has already established itself as a true professional, with whom it is pleasant to deal with.
What is the main factor when choosing a logistics operator?
Most managers, first of all, pay attention to the price offer, which, however, is logical, but not always correct. First, high-quality services cannot cost too cheap, and secondly, the price you are told is often an average sum, which varies depending on the tasks and volumes.
Time is also an important aspect in choosing a contractor. It is one of the most valuable resources and the speed of the logistics company is negotiated separately. But there are a lot of pitfalls here too – three hours to receive the car: is it fast or not? Everything depends on the goods (bricks or laptops) and on the dimensions of the car.
It is better to make the final choice basing on individual tasks that you set for the company. If the volumes and term of work are significant, it is worthwhile to think about your own logistics center.