Logistics: Outsourced VS In-house

Logistics: Outsourced VS In-house

Whether you are an up and coming business, or a well established one, logistics plays a huge role in your final product. Some business still handle the logistics of their goods in house, while others rely on a third-party logistics provider to tend to that part of their company.

Both, of course, come with their own pros and cons. Whether you choose to handle your logistics in house, or to outsource them, for your business is, of course, a personal preference, and we hope to help you choose what suits your personal and budgetary needs best.

In-House Logistics

In-House LogisticsOne of the first things to look at when deciding your order fulfillment requirements is whether or not your team can handle In-House logistics. Does your facility have the space to grow? If your business is considering in-house logistics, there should be space for your logistics as a whole. This will include warehousing of your goods while they await delivery. You may also want to consider how involved your product assembly is. If you have a fairly intricate and precise assembly, that might be better left in house. If your product is straight forward a 3PL may be more cost and time effective. Another point to consider is your current staff's skill level. A skilled and capable logistics manager and the team will make all the difference for fulfilling orders.

Outsourced Logistics

Outsourced LogisticsOutsourced logistics is simply 3PL or third Party logistics. That is the partnering with a logistics provider to tackle all or part of your logistic needs. That may mean you have outgrown your current in-house logistics, and in the growing period you need some extra help, or you want to outsource your logistics altogether. Outsourcing allows your company room to grow at a comfortable pace and allows for the time needed to focus on that growth. Many companies have found that the investment to grow is far higher than to utilize the hand of a third-party logistics provider. In many cases, a 3PL will be a more cost-effective form of growth for your company. Take the time to find a trusted and skilled 3PL provider, as they will essentially be a part of your team.

Before you decide which is best for your company, it is a good idea to take a step back and evaluate your businesses logistics, and what may be holding it back. Once you have an understanding of what areas need some improvement, then is a good time to decide which avenue to take.

American Manufacturing Solutions takes on logistics, from start to finish with an experienced and skilled team. Whether it be assembly and packaging, warehousing or delivery of your goods, you can count on us to get it done right. We take great pride in our team of trustworthy members, who work hard to produce nothing but top quality service for all of our clients. We look forward to helping you and your growing business with your logistics needs, no matter how big or how small the need.