Outsourcing logistics and supply chain functions can hold many advantages for businesses, one expert has suggested.
Writing in MHW magazine, chief executive officer of iForce Mark Hewitt pointed out that outsourcing can help cut costs – especially for online retailers.
Mr Hewitt asserted that in employing third party logistics (3PL) service providers, firms can eliminate fixed logistics expenses, while the move would remove the necessity of investing in warehouses, equipment, transport and maintenance.
It would also enhance business operations by increasing efficiency and improving customer service.
He commented: "Of course where a 3PL can add true value is in the delivery of an integrated logistics service that can be scaled and tailored to meet the customer's needs.
"Economies of scale, more direct routing, additional expertise, stricter inventory control and improved technology."
According to Miebach Consulting's Global Logistics Trends Study 2009 – Go Local for Performance, 20 per cent of companies worldwide are not aware of their logistics costs, Logistics Today reported.
