How outsourcing can help elevate the logistics industry
What’s included in the logistics industry
The logistics industry is more sizeable than many may think, with several types of companies falling into the sector. Just to name a few, there are Taxis, food delivery, couriers, HGV, coaches, airlines, and import & export. Due to the nature of these companies, many areas for problems have arisen over the years. Not only do these issues apply to small businesses, but they also massively impact the leaders of the logistics industry.
What problems do logistic companies face?
The problems in the logistics sector continue to develop at the time of writing and have been for some time. Following Covid, many of them are financial issues, though there are some exceptions. Below are just some of the concerns faced in the industry.
– Rising fuel costs (With a family car costing more than £100 to fill)
– The cost of fleet maintenance
– A lack of skilled drivers (With a shortage of over 100,000 workers)
– Poor routing strategies
– Pressures of becoming sustainable (Following laws and consumer expectations)
– Meeting tracking expectations
How can outsourcing solve these problems?
Although there are many considerations regarding the problems above, outsourcing processes can be a great way to soften the blow and keep you operating smoothly. Here are some examples of how:
Cost of fuel and maintenance – Outsourcing critical business functions such as customer service can bring significant cost savings, helping to justify paying extortionate fuel prices alongside regular vehicle maintenance. Additionally, if fuel prices were to fall, then cost savings would be even greater, giving more growth opportunities.
A lack of skilled drivers – In this case, outsourcing your recruitment could bring you more qualified candidates for a lower cost. Alternatively, you could outsource other processes, freeing up time and capital for your in-house recruitment. It may also be beneficial to invest the money saved through outsourcing into putting unqualified candidates through the required courses.
Poor routing strategy and trackability – Chances are, employing a UK team to get these strategies in place is too costly. Outsourcing a team to optimise your routing and tracking is more likely to be within your budget, and your quality will still be maintained. Having a capable team on hand can also be beneficial to making changes along the way as barriers arise, staying ahead of the curve.
Increasing sustainability – This is a strong focal point in logistics due to travel pollution. If this is your company’s focus, then handing over your processes can reduce your overheads and give you capital to move directly into environmentally friendly practices. This investment could see great ROI, considering that sustainability now plays a key role in the consumer’s decision-making.
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