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Can Your Business Afford to Not Work With Logistics Companies?

Thursday, June 18th, 2015

Logistics are an enormous part of any retail business, because they include your product’s entire journey from its source to your store, or to the customer’s home. This includes packaging, transportation and shipping, delivery and warehousing or cross-docking.

Any breakdown in your company’s logistics can mean big trouble for your company. Because of this, it’s often better to outsource your logistics, than to keep them in-house.

It takes great skill, experience and attention to detail to deploy a cohesive logistics strategy, just as it does to run any company. Your logistics team is essentially a corporation within a corporation. That’s why it makes sense to outsource to a company whose sole focus is on logistics.

For many years, businesses had no choice but to manage their own logistics. However, by outsourcing your logistics, you ensure that:

  • Your customers are more satisfied,
  • Your costs are dramatically lower, and
  • Your profits are higher

Why?

Logistic companies carry insurance for your merchandise and their employees, so you don’t have to. When you manage your own logistics, any loss is your team’s fault. You also have to carry the monthly cost of insuring your merchandise. In addition, you have to manage and properly reimburse your workers. This means paying salaries and covering workers’ compensation, health insurance and other benefits for warehouse workers, drivers, handlers, administrative assistants, managers, dispatchers and all other sorts of staff you probably haven’t even realized you’d need yet.

Fleet and machine maintenance and insurance. In addition to insuring your merchandise, you have to ensure that your transportation and machinery carries the right insurance. You must also ensure that you have the most up to date trucks and machinery. This means keeping up with safety recalls and knowing what modern equipment is available, so you can properly compete with other companies in your industry.

Logistic companies have reliable and measurable experience. When you choose to work with a logistic company, it’s not like reading a resume and hiring just one or two extremely qualified people. Logistics companies have been in business for many years. You can measure their success in the success of the customers they work with. Since logistics providers serve many customers across many industries, they can easily adapt to a wide variety of rapidly changing marketplaces. Because of this, your company will never be left behind. In addition, you will always have an expert second opinion on hand when you need to make a logistics decision.

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