5 Common Logistics Outsourcing Mistakes

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Posted byVelox Express Posted in
Posted on Feb 27, 2019

Logistics outsourcing has been immensely popular, but its success will still depend on several factors, one of which is the reliability of the 3PL provider. There is no doubt that fledgling companies are not immune to making a mistake. This is why you need to be very careful because it is always the reputation of your logistics company that will be at stake when things don’t go as planned.

Awareness is one way of avoiding these outsourcing mistakes.

1. High expectations

If you have projected that your outsourcing initiative is going to be 100% successful, then you’re in for a disappointment. Due to expecting too much, outsourcing logistics companies often become frustrated when expectations are not met. In essence, achieving 70% of what you projected is already good news. If your purpose is to save cost, you need to make a careful analysis of what you should expect from the internal operation. If you think that the process is inefficient, you can end up increasing the cost instead of reducing it.

2. Not creating an exit plan

As much as you want things to go your way, you might encounter a logistics provider that may cancel your transactions at the last minute. If the provider failed to deliver on your expectations, you’ll be facing a bigger problem because you have not prepared for these consequences ahead of time. Having an exit plan will minimize the damage if things don’t go well.

3. Neglecting the importance of communication

Most problems occur due to lack of communication. You need long-term plans for your business to stay on its feet. When dealing with your partner, you need to make sure that you’re meeting halfway. Assuming that the process is smooth-sailing only to find out that it isn’t, is going to be a recipe for disaster. Communicating with your logistics partner will help you to find out what works.

4. Not carefully choosing a dependable provider

If you treat your partnership with a logistics provider as more of a purchase than a business endeavor, then you’re not creating a long-term contingency plan in case something goes wrong. You’re only focused on getting the best price, which is not a wise move. You need to make sure that you are concentrating on establishing strong relationships with your logistics partner. Keep in mind that you will be dealing with them on a regular basis so you need to make sure that both of you agree on the same thing.

5. Perceiving outsourcing as a strategy

Outsourcing your logistics operation should not be treated as a strategy when it should be deemed as a strategy enabler. An outsourced logistics operation is not ideal for every company so you need to be clear with your objectives before you decide to outsource this aspect of your operation.

Not all shipping-related logistics provider can meet your expectations. Outsourcing your shipping needs with Velox Express will give you a problem-free transaction because of its seamless and streamlined process.

VēLOX Express
243 S. Madison Ave
Greenwood IN 46142