Why Your Business Should Outsource Sales Logistics
Gary Howden • July 16, 2020
Why Your Business Should Outsource Sales Logistics
In our digital age, businesses are continually learning new ways to cut down on overall costs and maximise their Return On Investments (ROIs). If you want to optimize your business practices, there are few methods that work better than outsourcing sales logistics.
Outsourcing is a modern day necessity
In 2020, the digital landscape is constantly changing. Globalization, digitalization and technological advancements are continually revolutionizing the playing field, requiring businesses to follow trends if they want to keep up. Because technology is also being optimized for helping businesses save money, outsourcing is a modern day necessity for companies who want to increase their ROIs.
How outsourcing has changed throughout the years
If you had asked businesses 10 years ago if they were outsourcing, many would have likely said that they are just beginning to consider whether it's actually helpful or not. This mindset is a thing of the past, as companies have largely been embracing the concept of outsourcing in the 21st century. In particular, companies are often seeking outsourcing trends such as third-party logistics providers (3PL), allowing them to limit their employee count and maximize profits with the help of technology. This makes it not only easier for you to increase your ROI, but also cut down on costs!
More than ever before, businesses are also trying to outsource 3PLs for tasks such as management of company assets and packaging design. Another one of the notable outsourcing trends is that businesses are using fourth-party logistics (4PL)! In fact, a recent Gartner's survey showed that 42% of respondents wanted to work with a 4PL.
Is outsourcing a good idea during the COVID-19 pandemic?
Whether or not outsourcing is a good idea for your business during the COVID-19 pandemic will ultimately depend on the resources you have. If your finances have not been heavily impacted by the ongoing pandemic, it can still be very helpful for your supply chain to outsource your sales logistics. However, if your company is struggling financially, it might be better to first speak with a trained consultant who can help you figure out if outsourcing is right for you. That being said, if done correctly, outsourcing can be a great way to save your company money during the pandemic. This is because outsourcing often involves more in-depth oversight over specific portions of your supply chain, allowing you to have stronger ROIs.
Which factors should you take into account when outsourcing?
As we mentioned earlier in this article, most businesses that partake in outsourcing typically work with a 3PL. To determine if a 3PL is right for your business, we recommend that you take the following things into account:
Customer Satisfaction and Improvement:
As a business, are there areas in which you can improve your customer experience? 3PLs are often good at helping with customer satisfaction in industries that are continually building upon their relationship to their clients. For example, in 2020 one-day shipping and even same-day shipping has become incredibly popular among consumers, pushing more and more businesses to provide faster options for receiving items. 3PLs can make this process easier by providing automatic shipping updates for customers, allowing them to track their orders in real-time!
Unnecessary Downtime:
One of the best things about 3PLs is that they run 24/7, allowing you to monitor chain executives at all times and avoid unnecessary downtime. Because there can't always be humans there to look after chain executives, working with 3PLs is a great way to keep your business on track. Having downtime can also deter customers who aren't able to order through your site!
Efficient Spending:
Are you a business that spends too much time trying to negotiate bulk shipping orders from your distributors? 3PLs can help you save time by managing bulk orders on their own, maximizing your efficiency and helping you save as much money as possible. These processes are typically automated, so all you have to do is set up a recurring order!
Consider Looking for a Sales Professional:
A sales professional can bring a lot more experience and expertise to your company, allowing you to increase your overall efficiency.
Focus on the Important Things:
When you are constantly trying to advance your business and come up with new products, it can be difficult to manage the day-to-day processes that come with a business. By outsourcing to 3PLs, you can be strategic about your time and be more efficient overall.
Advanced Technology:
3PLs often use some of the most advanced technology in the industry, allowing your business to grow alongside market trends.
Can outsourcing take your business to the next level?
Generally speaking, yes. Though some businesses might not see a clean-cut cost reduction, almost all businesses are able to make plans for long-term cost reduction through outsourcing. Like any other aspect of business, outsourcing sales requires dedication, perseverance and time. However, those who commit to the practice generally find that there are many different benefits that do indeed take your business to the next level. For example, outsourcing can help you improve your overall risk management methods. When you are running your own supply chains, there is always room for mistakes to be made, but outsourcing can help your business utilize 3PLs to remove the possibility of human error.
Another benefit of outsourcing is that you can target sales markets that were not previously available to you. The reach of businesses is often limited by the number of employees that they have, making it ideal to work with a sales professional as a way of extending your outreach.
If you want to take your business to the next level, you should definitely begin outsourcing. Those looking to find success with their first try should reach out to a sales professional like Gary Howden at The Sales Agency. Working directly with a sales professional can help you increase your outreach and optimize your outsourcing methods.
As a company, The Sales Agency is very experienced with providing businesses with efficient advice on how to outsource sales logistics in ways that help you cut down on costs and increase your ROI!
When I look at a CV it is not about qualifications and who they have worked for, it's more about what they have done and you can't tell that from a CV. With modern technology and the current restrictions, we are doing everything via Zoom or Teams and again this gives a unique opportunity to meet more people and have a short meet and greet with people from all different areas of the business as I find from experience that talking to people and listening to what they have done and what makes them tick will tell you more than any CV in a short time.
Using an external commercial consultant can feel like you are letting go of the control of the greatest part of your company Sales.
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