Reasons to Outsource Your Transportation Logistics Management

6 Reasons to Outsource your Transportation and Logistics:

While the transportation & logistics function is critical to your organization, establishing an in-house department can take a lot of time and resources. Many companies are finding that it is more cost-effective and efficient to outsource their transportation and logistics operations to a third-party logistics (3PL) expert.

Here are some of the reasons to work with a third-party logistics company:

1. It’s too expensive to establish an in-house department
2. You want to benefit from the years of transportation expertise and industry relationships that a 3PL offers
3. You don’t want the headaches of managing transportation, and instead want to focus on your core business
4. You want to be assured that you’re getting the best value from your carrier contracts
5. You don’t have time or resources to capture key data, analyze metrics or optimize your transportation operations
6. You’re not confident of the accuracy of your bills

Real-World Benefits

A third-party transportation and logistics firm can help you identify opportunities to control costs in many ways, by conducting analysis of historical and predictive patterns, looking at different options such as combining loads or timing shipments, negotiating more favorable contracts and consolidating carriers.

One large company in the power industry turned to Adcco 15 years ago to ensure they were getting the best value from their carriers. Prior to the relationship, the company was using 83 carriers , but through carrier analysis and negotiations, Adcco reduced the number to seven , obtained volume discounts from the carriers and saved the company $5 million.