If you are reading this article then it’s likely that you are toying with the idea of setting up your own logistics department to help to save your business money. This is your first big mistake and many business owners before you have done exactly the same thing. You need to think about the costs of setting up your own logistics department in both times and start saving money. It takes an incredible amount of organisation and effort on your part to try to set it all up in the first place and you will be spending business funds purchasing suitable transport and setting up a particular office environment to deal with all of your logistics needs.
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It doesn’t make any financial sense to do something like this and to tie up all of your hard-earned cash into something that might not even work in the first place. This is why many people look outside their business for high value logistics services from reputable service providers that have been in business for many years. If I still haven’t convinced you about the futility of setting up your own logistics department then maybe the following reasons for using a professional logistics provider can help you to make the smart business decision.
- Better control of your costs – There is no ambiguity when it comes to using a trusted third-party logistics provider because their charges are very upfront and so this will allow your business better inventory control when it comes to passing on the cost to your customers. Using a third-party logistics provider will cancel any supply chain problems and there are procedures will be incredibly efficient because of the amount of planning that they do.
- It reduces your overheads – As was briefly discussed before, running your own logistics Department is a very time intensive and costly thing to do. By passing on your logistics needs to your provider, you’re taking real steps to reduce your overall overheads which include having to store products in warehouses pay high shipping costs for a streamlined shipping process.
- It prevents loss of stock – These logistics service providers have everything in place to make sure that they know where every single one of your items is at any particular time in the logistics chain. They can actually offer you the option of going online and seen exactly where your delivery is and when it will reach its final destination.
- It gives you the competitive edge – It’s likely that you have been looking for something that can push you ahead of your closest competitor and this is the very thing to do just that. If you can offer your customers a reliable delivery service that will actually bring their goods to them on the day specified and at an agreed time then this can only have a positive effect on your customer service outcomes.
It doesn’t make any sense to set up your own logistics department when there are already service providers out there with everything in place and they are more than happy to take you on as a new customer.
