Expert guidance on whether to outsource logistics functions
Logistics outsourcing is the process of transferring the ownership for carrying out a specific logistics activity to an outside party. ‘In housing’, on the other hand, is the taking back control of logistics activities from a third-party. The core benefits of each approach are outlined below:
Benefits of Outsourcing Logistics
- Ability to focus on core business activities
- Release of capital tied up in warehouse property and systems
- Opportunity to access specialist logistics skills and technology
- Leverage scale and synergies of being part of a larger network
Benefits of Managing Logistics In house
- Retain operational control and flexibility to achieve service level
- Greater alignment of objectives particularly on cost
- Release time spent on managing external contracts
- Retention of skills supporting unique processes or customers
Our team of consultants are experienced in logistics outsourcing through delivering consultancy projects and working for third-party logistics (3PL) providers. We support your operation by evaluating the impacts of outsourcing specific services. In this, we understand whether there is a business case to support outsourcing and if there is, we help formulate a proposal for board approval.
Our expert guidance can also de-risk outsourcing or help to maximise the benefits of this. By reviewing logistics processes, we can pick out areas that are inefficient or complex. Complex processes can be a headache for 3PLs and can lead to painful transitions – plus outsourcing inefficient processes is quite often unlikely to solve the inefficiency. BoxLogic will guide your team through the process, get you ready to outsource, as well as help you select the right partner.
Once a decision has been made to outsource or take logistics functions back inhouse, BoxLogic can also support the next steps. These might include tendering out services, warehouse design, transport optimisation or project management support. Our consultants are also able to review an operation to identify efficiency gains and operational improvements, whether outsourced or inhouse. This can help you to set target contractual costs to negotiate with your 3PL prior to contract renewal or provide strategies to extend the life of an existing facility to delay outsourcing.