You have heard it before – no one can do everything themselves. This is true within business as well, and distribution and logistics are no different. It can be something of a hassle to distribute your goods throughout a given region, especially if you are already focusing your efforts on making the best possible products while ensuring that you keep your competition at bay. Yet so many business owners and managers appear to be hesitant about letting go of the reigns and have a third party be in charge of distributing their products.
What if you intend to expand and enter into new markets? Buying and implementing additional logistics assets is going to cost you a great deal of money, and may be an arduous process that is going to give you more than a few sleepless nights. Even if you do have the right transport materials and the right properties, you do not have any guarantee that this will lead to a well-executed supply chain strategy. In short, you have no guarantees that it is going to work out the way that you want it to.
This is one of the reasons that we see people outsource their logistics needs to a third-party logistics provider. There are several reasons that having a third-party logistics provider makes sense, despite the fact that it might be a bit intimidating to have someone else take care of your logistic needs. However, outsourcing your needs to a logistics provider makes sense for the following three reasons.
Reason #1 – It allows you to reach new markets
If you work with distribution specialists, you have a chance to deliver your goods or services to previously untapped economies. It does not matter if you already have a million dollar turnover and want to get into the South American or Middle-Eastern market, or if you are nothing more than a mid-sized retailer that wants to expand across state lines, new markets always mean more opportunity. You could take the time and see if you could transition into these markets yourself, but the fact is that for most companies, this is just not feasible. Why not use the existing network that these companies already have and reap the benefits without any of the initial obstacles?
Reason #2 – Distributed coverage
When you are dealing with professional logistics companies, you are working with a company that already has an established network. These have distribution centers located across vast territories. This is going to allow you to decrease your shipping expenses for your customers, and it allows you to move a lot faster in relates to getting your product to the right person. Simply put, you are not just focused on a singular aspect of your business, but are able to focus on getting your business in order.
Reason #3 – Fewer problems with customs
Whenever you are moving goods across transnational borders, chances are that it might be a little difficult to abide to standard delivery times. This is especially true if you have little information about the scanning process and if your shipments are constantly being subjected to checks. You can reduce these disruptions by finding a reputable logistics partner who not only has a great deal of experience with specific shipping information, but is also knowledgeable about how to avoid problems with shipments in the future.
There is no denying that having a third-party logistics provider can help you avoid problems. Whether it is something that is right for you is eventually up to your current situation and your ability to delegate specific factors of your work to others.