5 Advantages of Outsourcing Logistics

In 2023, approximately 24% of small companies said they outsource logistics to increase efficiency levels within their organisation (Findstack). And who can argue with them?

At VLT Logistics, we know the benefits of outsourcing logistics can have a hugely positive impact on company growth, consistency and customer satisfaction. But what are these benefits and how could they boost productivity in your business?

1. A Cost-Effective Strategy

Outsourcing your logistics is an easy way to save money on your overall production strategy. Logistics providers have unparalleled visibility of the supply chain, enabling them to increase efficiency across the board which both saves you money and gives you the freedom to respond faster to customer requests.

A more agile business with reduced logistics costs can satisfy customer needs at a lower price, leading to more sales with less labour.

That’s not mentioning that outsourced logistics services can return items to your inventory with greater speed, and provide a wide range of services in one place. This saves you money on internal staff costs, and gives greater opportunity of turning over stock at a higher rate.

In fact, in a survey conducted by Findstack, 70% of companies said they outsource logistics to save costs.

2. Access to Skilled Workforce

Training and employment costs involved in successful, top of the range logistics might not be sustainable for company growth.

However, when you invest in outsourced logistics, you have access to skills outside your organisation without incurring employee costs. Logistics organisations employ people, technology and processes at a high level of experience that you might not have the funds for internally.

Distribution and warehousing solutions are just the tip of the iceberg when it comes to hiring an external logistics company; the insight and analytics possessed can be a lifesaver with relation to decision making, improving efficiency and updating execution of customer first processing.

3. Enhanced Customer Service

It is well known within the logistics industry that our goal is to improve relationships between organisations and their customers. By putting money in warehousing, stock storage, customer communications and the safe, speedy delivery of products, parts and materials, we ensure satisfaction from the moment you contact us to the final stages of delivery.

4. Risk Reduction

Legislation and technologies directly applicable to logistics are all afflicted by advancements within their field meaning it can be difficult to keep up with the fast rate of change. Therefore it can be fairly risky to place heavy investment on internal logistics IT systems, software and training.

Logistics providers can spread this risk for you by taking the responsibility off your hands.

5. Universal Base Location

If your organisation requires relocation whether this is due to rental costs, upscaling offices or even expanding into a new area, shifting supply points can make the process unnecessarily complex. Outsourcing logistics can easily remove this obstacle and reduce disruption to your business throughout this time.

This means that overall supply and demand as well as customer service standards can continue as normal whilst you enact the change.

You will also be able to remove the cost of sourcing new warehouse locations and instead be able to reinvest the money saved into boosting customer satisfaction.

VLT Logistics have over 20 years experience in the distribution of goods with drivers that are qualified to handle all of your requirements. We have the ability to deliver single pallets for smaller companies as well as full articulated loads of your completed product, parts or raw materials to improve the operational efficiency of your business, regardless of size.

If you’re interested in outsourcing your logistics to a fully trained team who put your access and understanding first, get in touch today to discuss your requirements.