Myth-Busting Logistics Outsourcing - Supply Chain 24

More shippers today appear to be outsourcing some or all of their logistics, so how does a company decide that outsourcing logistics is the right choice? C.H. Robinson Resources. C.H. Robinson helps companies simplify their global supply chains. Skilled logistics employees apply a deep knowledge of market conditions and proven processes to solve transportation problems. Integrated technology gathers data from all parts of the supply chain and provides full visibility to orders… C.H. Robinson News. Outsourcing is a big decision, but myths about outsourcing can cloud your decision-making. Companies may decide whether or not to outsource based on factors that may not reflect market realities. If outsourcing is undertaken for the wrong reasons, dissatisfaction with the overall outsourcing engagement can result. Such an outcome can be mitigated by examining some ideas that have taken hold concerning logistics outsourcing: We can hand over the problems and issues associated with logistics operations by outsourcing Don’t expect to outsource, wash your hands of logistics, and ride off into the sunset. You and your staff know your business, your customers, and what you want to achieve. The provider needs that input to solve logistics challenges that confront your company. Communication and collaboration with your outsourced logistics provider helps them understand your business and logistics goals. It also builds a high level of trust and ensures that the outsource solution aligns with your supply chain strategy. Without this, you’re more likely to experience frustration, blame, and poor logistics performance. As competition heats up, more companies are likely to engage in collaborative relationships with proven global supply chain outsourcing providers. Such providers can add expertise and visibility and act as an extension of the company’s logistics team. In this way, companies can reach higher levels of logistics capability and leverage their provider’s scale in ways that can lead to a competitive advantage. White Paper Resources on Outsourcing Logistics. Is Logistics Outsourcing Right for Your Company? This white paper can help companies decide, set reasonable expectations for what outsourcing can contribute to the organization, and how much of a role the company will need to play to achieve the successful business outcomes they seek. Create a Culture of Change This 3-part white paper series looks at how companies can prepare for a logistics outsource. Discover how to build a change management framework, what needs to happen before and during implementation, and how to sustain a culture of continuous change. How to Gain Value from a Strategic Onsite Logistics Resource Logistics outsourcing agreements can require the provider to place highly knowledgeable, strategic staff onsite at the company’s location. This paper looks at the strategic onsite role and includes best practices with onsite resources that can increase successful outcomes. Gaining Efficiencies Through LTL Outsourcing Improve efficiency and lower costs by outsourcing less than truckload (LTL) freight. Read this paper to learn why companies outsource LTL, how LTL pricing and discounts actually work, and what to look for in an LTL outsourcing provider.