Did you know that over 80% of Fortune 500 companies rely on outsourced logistics to optimize their operations and keep the supply chain running efficiently?
From cross-border services, warehousing, and freight solutions that cover sea, air, and road transportation, let’s take a look into the advantages and benefits of outsourcing logistics, it’s challenges and how a reliable 3PL like EP Logistics, can help you manage your business’s logistics with ease:
What is Outsourced Logistics?
Outsourced logistics means working with an external logistics provider that handles all the processes and operations involved in your supply chain. This includes managing transportation, warehousing, customs, and inventory management.
Depending on the needs of your business, outsourced logistics services can be hired under different modalities:
- 3PL (Third-Party Logistics): These types of providers will handle your transportation, warehousing and order fulfillment. It is the entry-level logistics outsourcing. Because they have their own networks, and infrastructure, it is great for starting businesses to reduce costs and skip of owning their own infrastructure which is very costly.
- 4PL (Fourth-Party Logistics): The next level are 4PL providers. They focus on the whole supply chain management and look after each operation on your company’s behalf. They usually coordinate with different 3PL to provide your business with optimized operations and enhanced productivity.
- 5PL (Fifth-Party Logistics): One of the top choices for retail business, both in person and online (e-commerce). This is the most complete logistics provider type and is great for large, complex supply chains and networks.
They rely on the use of advanced technologies and automation to ensure an accurate, fast, and smooth management of the supply chain.
Many businesses choose outsourced logistics because it helps them maximize cost savings, operational flexibility, and scalability.
It is an efficient way to minimize the need f having their own infrastructure which would be very costly as well as reduce the labor they need to care for.
Also, by working with trusted providers like EP Logistics, businesses benefit from their wide experience and networking, which comes in handy when solving unexpected challenges.
Customization is the key to exploiting the full potential outsourced logistics can bring to your business, which is why EP Logistics offers logistics solutions across the U.S.-Mexico border, tailored specifically to suit each unique business.
How Does Outsourcing Logistics Work?
The process is pretty straight forward:
- Evaluate: The first step is to define the needs of your business and its goals.
- Selecting a Provider: After this, you can start the search for a reliable and proven, experienced provider you can trust and that is specialized in your specific industry.
- Integrating with Systems: Your logistics provider will work with you to integrate the systems they need for tracking and inventory control. These systems are usually compatible with your current platforms.
- Regular Communication and Reporting: Lastly, maintaining a clear and constant communication and report of logistics operations, is crucial. Your provider should be reaching out to you to ensure goals remain aligned and avoid errors cause by miscommunication.
Depending on your type of business and industry it belongs, outsourcing logistics can cover different services which can include warehousing, transportation, ecommerce fulfillment, and inventory management among others.
Most companies decide to outsource their warehousing and inventory management, for example, in order to reduce costs and up resources to focus on other main operations.
Choosing a professional provider that can offer you a wider range of services is crucial to ensure your logistics operations are covered thoroughly.
This is why as an expert 3PL partner, at EP Logistics we offer advanced additional services such as real-time inventory tracking, customs brokerage, cross-border road freight., and specialized warehousing solutions.
3 Key Benefits of Outsourced Logistics
Every day, more industries of all kinds outsource their logistics to meet the increasing demands of growing supply chains.
In fact, logistics outsourcing market has grown so much that it is expected to reach 1,642.2 USD Billions by 2032
But why are outsourced logistics, so essential for a company? Let’s recap on the greatest benefits from Outsourcing your Logistics:
1. Cost Savings
Reducing overhead costs and labor expenses is one of the biggest and most attractive benefits.
Because taking advantage of specialized logistics services, eliminates the need to own and maintain a private infrastructure, businesses can redirect their resources into other areas instead.
At EP Logistics, we strive to offer you competitive and cost-effective warehousing and transportation options that help optimize your supply chain while keeping costs in check.
We also focus on implementing proper inventory management techniques that ensure your inventory levels are always optimal to avoid stock outs and overstocks that damage your reputation, increase costs, and cause profit loss.
2. Improved Efficiency and Focus on Core Activities
Another big advantage is the overall improvement of your supply chain. Allowing an expert provider to manage all logistics operations for you, allows you to focus on other aspects of the business while having a peace of mind that everything is handled on your behalf.
Our goal at EP Logistics is to handle complex and time-consuming tasks for you like customs brokerage, warehousing, and last-mile delivery so you can use freed-up resources to increase customer service, product development, marketing, and other core areas of growth.
3. Scalability and Flexibility
Being able to scale operations up or down according to the business needs and current demand, market trends, seasonal changes, and consumer behavior is another significant advantage of outsourcing logistics.
Know that EP Logistics solutions are fully scalable and customized to your unique business, regardless of its size or industry.
We focus on flexibility and adaptability to allow your logistics to stay proficient and cost-efficient while staying ready and competitive at all times.
Potential Downsides of Outsourcing Logistics
Although outsourcing logistics brings numerous benefits, as with anything, it is worthwhile to consider the challenges that come with it:
- Loss of Direct Control: Outsourcing means you’re giving the control out. This is why it’s crucial to ensure your provider is trusted and well renowned, that maintains clear and constant communication.
- Dependency on Third-Party Providers: It also means operations rely on other providers. This is an aspect to take into consideration when choosing your logistics provider, make sure their network is strong and filled with reliable providers.
- Service Quality Variability: Since relying on different providers, some aspects like quality and service can differ from one provider to another. Again, research is key.
Our 20+ years of experience back us up at EP Logistics as a trusted 3PL partner. Feel free to take a look at our reviews and history and find out more about why we are known as a top logistics partner. Our reliable and customizable solutions that ensure the integrity of your business and brand.
Choosing the Right Outsourced Logistics Provider
Let’s look into some factors that shouldn’t be overlooked when selecting your logistics provider:
Evaluating Providers
We can’t emphasize enough how important it is to make sure your provider has proven experience, can offer you customizable services and is knowledgeable on your industry so that it can provide you with the right services.
A good provider will also offer you complementary services to make your processes even smoother and will have available advance technology systems and real-time services to boost visibility, analytics and overall performance.
EP Logistics’ Strengths
Not only are we a well-renowned logistics company, but we stay updated to ensure we can offer you the best logistics service.
From advanced route optimization, cross-border expertise, specialized warehousing, reliable transportation and 24/7 client support, we pride ourselves in being a strong logistics partner you can trust your business with.
Common Missteps to Avoid
Remember, cheaper is not always the best. Make sure your logistics partner offers you a good value for what you are paying. The best services will offer a balance between the costs and benefits they bring to your company.
Make sure you’re also working with an industry-specific logistics company. As there’s no such thing as one size fits all. Your business is unique, and so are its goals and needs.
Lastly, evaluate your provider’s ability to scale up. It is important to make sure your provider will be able to grow with your business and that you can establish a successful long-term partnership with them.
Why You Should Consider Outsourcing Logistics For Your Supply Chain
As we saw, outsourcing logistics brings many advantages to your business. It will allow you to better use your resources, enhance your supply chain’s speed, efficiency, and productivity, reduce errors, and it will give you an advantage to offer competitors.
EP Logistics provides you with reliable services for your business to streamline all logistics operations. Moreover, we look forward to building a long-lasting partnership with you that’s based on communication, respect, and understanding of your needs.
We are more than a Logistics company, we are a customer-reliable partner ready to grow with you.Contact us or experts at EP Logistics to learn about our logistics solutions, customizable services, and the vision of partnership that can support your business growth.
