Outsourcing Logistics

If your company doesn't want to take care of logisitics processes in-house, you can choose to outsource this to a logistics company. Typically, you'll need a contractual arrangement with that other company and will need to be in close communications with them to ensure a smooth transition.

Outsourcing has a variety of different advantages, making it easier to get work done and access the best logistics expertise. In this article, you can learn more about how logistics outsourcing typically works and how it benefits companies.

What is Outsourcing Logistics?

Outsourcing logistics allows companies to hire other organizations to take care of their logistics functions. By outsourcing, the hiring company may save money and get better results than they would if they tried running all of their own logistics operations instead.

Generally, logistics companies work with a variety of different clients to provide them with the logistics services they need.

How Does Outsourcing Logistics Work?

Companies that decide to outsource their logistics generally figure out from experience that logisitcs requires a significant resource investment and may not be as efficient for companies to do themselves. This is particularly true if the organization outsourcing their logisitics doesn't consistently use logistics services enough to have their own full-time, in-house logistics team.

Typically, a company outsourcing logistics decides to hire another company by following this process:

  • Initial planning: First, the organization plans to outsource by choosing logistics tasks and projects that can be readily hired-out to another company. They then create some goals for the hiring process and begin looking for a partner to hire.
  • Outsourcing search: From there, they look for a company to hire and begin comparing pricing, delivery times, volume, and other details.
  • Negotiation: The two companies negotiate a plan to meet the hiring company's logistics goals and needs.
  • Contract: The organizations sign a contract outlining expectations and compensation that is appropriate for the work.
  • Implementation: Of course, changing logistics takes time. The two companies will now spend time working closely together to make the transition successful. They will need to communicate effectively to make this a smooth process and make sure all of the right steps are followed as team members are trained.

Throughout the process, both organizations will need to work together well and communicate effectively to help ensure success.

What Software is Needed for Outsourcing Logistics?

Outsourcing logistics requires several different types of software to ensure that both companies can work together and have access to everything they need.

Example software used in logistics outsourcing:

  • VoIP (voice over Internet protocol): VoIP, or Internet-based phone service, allows organizations to quickly and effectively communicate via phone with landline, wireless, and other VoIP subscribers. It can help save money and improve phone features for subscribers.
  • UCaaS (unified communications as a service): UCaaS brings several forms of communication into a single platform so organizations can stay connected. With an essential service like logistics, it makes sense to use many different forms of communication together to make sure everyone stays on track and organized.
  • CCaaS (contact center as a service): CCaaS can help organizations gain access to a full suite of call center operations, software, and infrastructure. If the company chooses to outsource their call center as well, they can even avoid hiring call center agents themselves.
  • Cloud hosting: With cloud-hosted software applications, logistics companies and their clients can avoid having to obtain all of their own software and infrastructure and can instead contract this out.

Thanks to great software, logistics companies can get more accomplished and access more features and functionality. They can scale their operations, keep track of key analytics, and share information among their team members and with their clients.

Getting Started with Outsourcing Logistics

Outsourcing logistics allows organizations to obtain the logistics services they need even if they decide not to have in-house logistics staff and resources. Instead, they choose a trusted third-party company who can complete the work. This allows them to benefit from the other company's expertise and economies of scale derived from specializing in logistics.

Your business has enough on its plate. Outsource what makes sense for your business, choose a world class SaaS technology solution and focus on what's important: your clients. Call 1-866-879-8647 or fill out an online form to request a no-obligation quote from an 8x8 product specialist.

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