Outsourcing Can Be Your Supply Chain's Competitive Edge

Posted by Harriet Mills on Mar 20, 2015 4:29:08 PM

logistics operatorToday's highly competitive business dynamic means maintaining a supply chain that runs like a well-oiled machine isn't just a goal, it's a necessity. It becomes quickly apparent to most companies that it's impossible to do it all, and therefore it's critical to find the right outsourcing partners to supplement weaknesses in the supply chain, such as contracting out assembly or hiring a 3PL provider.

While it can be tempting to try to do it all in-house, outsourcing can alleviate internal burdens so your business can focus on strategic areas. Just a few of the top reasons to consider outsourcing include:

  1. Cost reduction - The right partners can help to reduce overall costs. For example, a manufacturing partner might be able to buy materials at a bulk rate or a 3PL provider could access reliable truckload freight contractors you cannot.
  2. Time savings - A company may have inadequate staff or management knowledge about a particular supply-chain step, and therefore outsourcing saves time while boosting expertise in the supply chain.
  3. Rapid growth - Every business desires growth, but at times it can be difficult to manage increased demand. This is the case particularly if that growth happens quickly. Outsourcing can alleviate the stress of growth while eliminating supply-chain hangups.
  4. Eliminate major investment - Certain aspects of the supply chain can be extremely costly to implement in house, such as purchasing manufacturing equipment or a fleet of trucks for transportation. Outsourcing makes better financial sense.
  5. Boost strategic focus - By outsourcing certain functions of the supply chain, the management team can now focus on strategic analysis, product development and other important initiatives.

The right outsourcing partners can create a competitive advantage, but it's important to do your research first. Start by analyzing your business's core competencies so you can figure out what aspects of the supply chain would benefit from outsourcing. Some of the most common parts of the supply chain that can be improved by outsourcing include raw material processing, manufacturing, assembly, support operations, warehouse storage, distribution and transportation.

Outsourcing to a qualified 3PL provider is one of the best ways to reduce costs and save time while ensuring products are shipped promptly and safely. The right logistics provider will help manage the ebbs and flows of your business while cutting unnecessary overhead. They will offer scalability to adjust to your supply chain's needs while providing you with access to technology and expertise.

If you struggle with finding reliable, world-class carriers, a 3PL partner is a necessity. The recent driver shortage has put many companies in need of reliable carriers and transportation partners. For example, Choptank Transport is an award-winning company with longstanding relationships with more than 26,000 leading carriers. Learn more about your outsourcing options today.

 

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