Logistics involves managing the movement of items from the point of origin to the point of consumption. It is often a complex process, but also an essential component of many businesses.
Logistics - Outsourcing
Today's typical company outsources logistics in order to maximize efficiency and implementation while minimizing travel time and costs.
Reasons to Outsource Logistics
1. Allows you to focus on essential operations - Leaving logistics to the experts frees up your time to concentrate on other critical areas of your business, increasing your core competencies.
2. Increases customer satisfaction - In today's competitive business world, customer satisfaction is paramount. Customers appreciate timely and reliable deliveries.
3. Reduced trivial expenditures - Let the logistics provider deal with the expenditures of insurance, docking, transportation and fixed warehouse costs, freeing up your accounting department from dealing with a multiple number of small expenses being doled out to a variety of vendors.
4. Efficient Tracking - Logistics providers have developed highly efficient tracking systems as part of their business in order to provide their customers with pinpoint accuracy regarding the location of their products and goods. This, then, allows you to pass on that information to your customers, providing them with a peace of mind.
5. Stop Reinventing the Wheel - Why spend your valuable time and money determining how to best handle logistics for your company? Logistics providers have invested a great deal of time and effort into optimizing their strategy. Continuous evaluation of the overall process allows them to maintain their own competitive advantage. After all, their business depends on it.
Finding the Right Logistics Provider
1. SWOT Analysis - Analyze your strengths, weaknesses, opportunities, and threats regarding keeping logistics in-house or outsourcing the process.
2. Selection Process - Have logistics providers come in to do a presentation regarding the services and benefits they can offer your company. Do not provide them with any requirements ahead of time; instead see if they have studied your company to understand your needs. If they do not take the time to personalize their presentation to your company, they are probably not a company with whom you want to partner.
3. Request for Quotation or Request for Information - Provide specific information, especially regarding forecasted quantities. Beware of a quotation that sounds too good to be true, because it probably is. The information you receive needs to be realistic.
4. Site Visit - Before signing any agreement, visit the logistics provider. Take a tour of their operations and meet the management and employees. Talk to their existing customers.
5. Legal Documentation - Once you have chosen a logistics provider make sure to document specific details regarding what you have agreed on and what you have not agreed on. The more detailed the documentation, the lower the chance of disagreements in the future.
At American Manufacturing Solutions we are well-known in the logistics arena, with an excellent track record! We are ready to take on your logistics needs and provide you with reliable and efficient services. Contact us today to have us work with you on your logistics needs!
