Outsourcing logistics to third party logistics companies is a strategic decision for any business. Businesses have many factors to consider when making a decision to outsource part of all of their logistics. These factors include the availability of capital required to set-up logistics, technology to run and automate operations, expert personnel including scalable operational teams and the ability to keep pace with overall business growth while running logistics in-house.
Smart businesses know that in today’s economic climate they need to be highly competitive and stay focused on their core competencies as opposed to doing everything in-house. Outsourcing functions like logistics to third party logistics companies can deliver you with more time so you can focus on growing your business.
Read on to learn 4 things to consider when making your ‘to outsource or not outsource decision’.
Investment capital into growing business not in logistics assets
Setting-up logistics on your own means making heavy upfront investments in capital items like storage systems, material handling equipment, IT infrastructure, utilities set-up, furniture and fixtures. This capital can be converted into monthly operational expenses if you decide to outsource to logistics companies. This frees-up capital to invest in other more critical growth drivers. Smart businesses are aware of this and engage with logistics solutions providers to make efficient use of their capital.
Get ready-to-use technology without an extended development time and with a lower cost
If a business wants to use its own technology, they are likely to develop systems in-house or engage an IT company to develop it for them. Both of these options involve a cost and time investment including time to implement the system and train you employees. Alternatively, logistics companies use the latest IT technology which is specifically designed to serve supply chain customers and is likely to incorporate a Warehouse Management System (WMS). By engaging logistics companies you completely mitigate cost and time risks.
Stay ahead of the curve by having experts to work for you
Having your own logistics set-up will also mean that you need to hire a team of experts in each sub-function of logistics to ensure it works effectively and efficiently for you. Expert roles cost large salaries and hiring and training new staff on your business model consumes time and resources. In addition, these professionals may not be fully utilised for sub-optimal sized operations. When engaging logistics companies you gain access to a pool of experts. Expert logistics companies are likely to have a team of experts who have extensive industry experience in all aspects of supply chain operations and will add value to your business, seamlessly.
Leverage ready-to-use logistics and warehousing networks
If you are planning to expand your business to other regions within Australia or globally, you will need to have logistics set-ups in all of these new areas. If you intend to manage your own set-ups, it will consume a lot of time and management bandwidth in getting this done. Engaging logistics companies who have ready-to-use networks in Australia and internationally can assist you with your growth much quicker than the time and cost involved to complete your own set-up.
Whether you are a start-up company or expanding your operations in New South Wales or Australia, executing on your own poses challenges and delays which can cause your business to suffer. Smart businesses understand this and engage with a right 3pl in Sydney which can enable faster execution, increase speed-to-market and make you stay ahead of the competition.
For more than a century, BCR has continued to help small, medium and large businesses achieve an optimum logistics solution with warehousing (domestic and offshore) and transportation, including air freight and sea freight services to and from the major ports including Brisbane, Sydney, Melbourne, Adelaide and Fremantle (Perth).