Operating a logistics network requires you to keep tabs on several relationships and their roles, all while managing your business. Many companies find that outsourcing supply chain management (SCM) brings increased efficiency by operating as your single point of contact to keeping products moving. However, this isn’t the only benefit that SCM providers offer. You may also receive access to a transportation management system (TMS), best practice benchmarking, data ownership/reporting and logistics cost savings.
When working with a supply chain provider, there’s no need to work directly with a large number of companies that provide your services. This keeps time and money spent on your logistics lower and can make it easier for you to keep everything running smoothly.
While there are many reasons why a company might turn to a logistics provider, here are a few common reasons that have positive returns.
- To effectively scale your warehousing space, labor and transportation to provide full year-round support.
- To increase prompt performance and discover efficiencies within the management of your inventory by utilizing innovative technology and processes.
- To provide supplementary supply chain support and test the waters in new regional markets or countries.
- To take advantage of lower transportation rates provided by logistics firms that have significant buying power due to their ability to leverage load consolidation and backhaul opportunities.
- To quickly build a multi-location distribution network with lower risk, without the significant capital investment associated with building out a network on your own.
SCM teams understand build plans, supplier performance, demand planning, inventory velocity and how each of these fit into supply chain management. This bundled capability is about moving products from suppliers to customers in a timely, accurate and lean manner.
In other words, SCM providers see the forest, not just the trees.
Utilizing a SCM provider could also be beneficial if you’re developing a supply chain strategy. These teams understand technology as a vital process enhancer. They recognize market, industry, global and technology changes. They also understand that a singular approach is not effective to serve different customers and markets. SCM providers are both strategic and tactical.
With this variety of abilities, choosing to outsource SCM function can bring a lot of value to your business. Look for a SCM service provider that can serve as a true partner in your company’s growth.
The England Logistics’ Supply Chain Management (SCM) division is dedicated to assisting shippers with all aspects of their logistical needs. SCM utilizes tools that offer enhanced visibility, efficiency, and profitability. Our team is dedicated to providing the best service and creating a customized strategy for your company’s needs. Reducing costs while increasing profitability is our goal, and we’ll work hard to see your business grow.