This is part two in a two-part series. Read part one here.
Outsourcing can improve efficiency.
Developing a supply chain infrastructure costs time, money and ongoing monthly costs for your business. The efficiencies gained by the introduction of technology to supply chain management have also meant that companies need more IT professionals to handle their in-house needs. Businesses who delve into managing their own supply chains often find that they can reduce their time spent developing their in house departments and focus on delivering customer service support and marketing. It makes the entire business operation more efficient.
Outsourcing can free up in house resources.
Packing and shipping products is not your core business function, so it doesn’t need to be the focus of internal resources. Companies that choose to outsource can benefit from spending their resources where they matter most. Time and capital are both freed up for other areas of the company’s growth.
Outsourcing can free up time.
Time is money in business, and there’s only so much a staff can get done during the course of the day even when the office is running efficiently. Supply chain management, order fulfillment and product distribution can be outsourced, so it’s less important to spend time on those key areas rather than the supply chain process. Increasing workflow, investing in management skills and looking for opportunities to grow market share is a better use of a company’s time.
Outsourcing can improve service.
While a lot of companies might think that outsourcing can increase the risks of bad service, most find that service levels are improved. Outsourcing customer service and returns functions to a supply chain management company have proven to be a boon to satisfaction levels of customers as well as employees. With increasingly competitive markets across the board, customers have higher expectations than ever before. Customer experience makes a different in whether or not a customer returns – and whether or not they share a positive experience with a company on social media.
Outsourcing can help with access to more advanced technological solutions.
Operations management is increasingly relying on technology rather than man power. Investing in technology for infrastructure isn’t at the top of most company’s lists – unless they specialize in supply chain management. Outsourcing to these companies is the best way for a business to gain all of the benefits of the latest supply chain technology without investing their own resources.
Supply chain relationships are complicated – and growing more increasingly so. Rather than invest heavily in in-house resources for logistics and product delivery, outsourcing offers a simpler solution. Including a plan for outsourcing supply chain management within overall business plans is key for saving money, saving time and leveraging the very best in technology.
Supply chain outsourcing is a strategic move that produces a streamlined solution that meets the needs of customers, your staff and your bottom line.