Today’s supply chain needs are complex. With advances in globalization, technology, and customer expectations, a company needs to consistently look for ways to be efficient and competitive in today’s marketplace. Often times, businesses look to outsource to a third party logistics provider or 3PL to gain the edge they need. However, many people who are given the responsibility to make this decision can find it more complex and difficult than they realized. They may find themselves asking a very common question which is, “How do I even know that I need to outsource?” Where do you start?
If you are asking yourself the same question, here is a list of 10 signs that you may need outsourcing support:
- You have inefficient inbound materials flow.
- You have high costs because you have too many carriers.
- You have high inventory carrying costs.
- Your technology is lagging.
- You have minimal to no visibility into your inventory and performance monitoring.
- Orders have exceeded the capacity of your current warehouses and private fleet.
- You struggle to meet omnichannel customer demands of faster delivery times.
- You are not good at returns management.
- You struggle with seasonal or fluctuating demand.
- Your warehouse labor costs are out of control.
If one or more of these signs resonates with you, you will need to determine a plan or process that defines the problem and identifies solutions, potentially with the help of a 3PL. Companies do tend to outsource basic services to 3PLs such as transportation, warehousing, and freight. However, there are also advantages to outsourcing more complex services such as packaging, kitting, assembly, and cross-docking to create even greater efficiencies and superior customer service.
If you want to learn how to prepare your case for outsourcing, download our new guide which gives you a suggested template and notes on what to include. Click here for your copy of “Making the Case for Logistics Outsourcing”. https://www.gdintegrated.com/ebook-making-case-logistics-outsourcing/
About the author: Susan Himes is a Marketing Specialist at G&D Integrated.