Outsourcing Logistics
Right, let’s get down to the matter at hand, outsourcing logistics. Whether your business is a B2B, B2C, service provider, retailer, importer/exporter, manufacturer or mining company your ideal outsourcing partner can be found with the right methodology, knowledge, experience and process. However, your requirements must dictate the process, not the other way around. The key is to first seek to understand. Understand your specific requirements. Understand how to outsource logistics to the right partner to consistently, cost effectively and with minimum management effort, meet your ongoing business requirements.
Since the 1980s the concept of outsourcing non-core business to enable a business to focus on its core business has been a great concept that has been implemented with a wide range of success. The size of the industry today is founded on the notion that in logistics volume cures all ills and that global supply chains have so increased in velocity and complexity that using an end to end solution provider makes sense. The explosion in B2C (business to consumer) retail business models is one example of a new sphere in logistics endeavours propelled by technology, social media and globalised trade.
However, there is no one size fits all solution. Large global 3PL provide strong service offers with real time visibility, consistent performance and reliable outcomes across long, complex, cross border supply chains subject to risk. This comes at a price and not necessarily with the flexible responsiveness your requirements or business model maturity demands. You benefit most from a 3PL where you are one of many similar customers with common requirements.
Many smaller 2nd and 3rd tier providers have offerings at a more affordable cost but without some of the bells and whistles and potentially the service levels and risk mitigation of the larger providers. They may however be leaner and more keen for your smaller volume requirements.
In any supply chain there is only one place that money enters the chain. That is from the ultimate consumer. Whether your competitive strategy is based on price, quality or differentiation the specifics of your product, price and placement must be the first consideration in specifying your particular requirements before contemplating any particular 3PL service provider.
Supply Chain Services Australia has spent the past 23 years and over 500 consulting assignments assisting customers to source logistics solutions and logistics providers to respond to requests for proposal from customers. This unique perspective allows us to be an effective translator, facilitator and mediator between the business goals of the 3PL service customer and the provider, to the benefit of both. We all go to sleep at night dreaming of a competent, well informed customer. SCSA can help you get there, whichever side of the fence you sit.
Talk to us about your business requirements and we can explain how we can deliver the right methodology, knowledge, experience and process to cost effectively achieve your business goals through outsourcing your logistics and allow you to focus on your core business. Remember, first seek to understand, then act.
Stephen MacPherson
Steve is a highly credentialled supply chain professional with success in executive, general, supply chain and logistics management, military logistics and in professional development. He has excelled as a consultant for 17 years and has contributed to the industry as a lecturer up to Masters Level, advisor on logistics and supply chain course content and as a former Chairman and President of the SCLAA.
