While the majority of companies once handled all supply chain management in-house, today’s volatile marketing environment demonstrates there are advantages to outsourcing those jobs. From finding qualified workers to locating or creating the space required for handling all supply chain duties, companies increasingly find it’s practical to outsource everything from procurement to fulfillment.

However, before describing the benefits of outsourcing supply chain management, understanding the actual definition of outsourcing is crucial. Outsourcing includes contracting a third-party company to manage and optimize the supply chain. The objective of outsourcing is for an organization to reduce costs while improving overall supply chain performance. Since companies vary to some degree, the actual process is tailored to meet a specific organization’s supply chain management (SCM) requirements.

Outsourcing SCM means your organization can focus on building the business rather than spending time on issues they may not be equipped to handle in-house. With the explosive growth of eCommerce over the past few years, companies find outsourcing SCM is both efficient and flexible. Below are five reasons companies now rely on Your Logistics as a trusted partner for your supply chain management.

1- Strategic Edge Over Competitors

Outsourcing your supply chain management is a smart move for business growth. It gives you access to helpful market insights and advice from your supply chain partners who know the industry inside out. They stay on top of trends and customer needs, providing you with valuable information to make smart decisions and stay competitive.

This newfound freedom lets you concentrate on important things like focusing on increasing sales, run better marketing campaigns, built quality products, and other aspects that make your business stand out.

2- Provide Value to Customers

Once you outsource supply chain processes, they become more efficient and save money, allowing your business to invest time in creating more value for customers. Working with experts helps manage inventory better, forecast demand accurately, and improve logistics. This means less unnecessary stock, cost savings, and better money management.

3- Improved Capacity for Meeting Customer Demand

All eCommerce sites compete with brick-and-mortar stores as well as other eCommerce businesses. The competition is fierce, which suggests delivering quality customer service is crucial. Your Logistics team members ensure your company’s inventory is available when an order is received. The order is picked, packaged, and shipped quickly, and customers receive their merchandise as promised on time.

Remember that every one of your customer’s expectations are important, and SCM experts ensure those expectations are met every time. Online shopping makes it incredibly easy for customers to migrate to another supplier if ordering or delivery problems arise, which is why the Your Logistics works closely with our clients to make sure the entire SCM process flows smoothly. 

4- Reduced Operating Costs

When exploring the benefits of SCM, one of the major advantages to note is a reduction in overall operating costs. Supply chain activities involve substantial costs, and not all eCommerce companies, especially startups, have cash on hand to fund infrastructure, labor, and other typical expenses associated with handling SCM functions in-house. 

Your SCM partner, on the other hand, focuses on providing quality service, as that’s their core function. From maintaining inventory to shipping, your supply chain partner makes sure every order is promptly and correctly filled. All our eCommerce solutions are designed to make sure your customers are happy and your organization remains competitive even in highly volatile market niches.

5- Enhanced Flexibility

One issue facing modern organizations is an inability to scale their operations to meet constantly fluctuating market conditions. Some markets are seasonal, and others see ups and downs due to both predictable and unpredictable issues. The pandemic is a good example, as companies everywhere were unprepared to meet the supply chain issues resulting from lockdowns, changing markets, and other related problems. 

Outsourcing SCM makes dealing with evolving conditions easier, as scaling up or down is simplified. Storage issues are avoided, staffing problems don’t enter the picture, and operating costs are more predictable. Your Logistics experts handle the logistics issues, leaving your staff free to grow the business.

6- Enhanced Risk Management

Introducing new products always includes risks. While companies invest significant amounts of cash when developing a new product, there is no way to guarantee the product will prove to be successful. When infrastructure and labor costs are included, the risks are even greater. 

When partnering with Your Logistics, those risks are greatly reduced. You don’t need to invest in building or leasing facilities, labor costs are eliminated, and you’re able to focus on product development and marketing rather than logistics. If you’re unsure just how significant your financial exposure will be when handling SCM in-house, take the time to analyze all the costs involved. If you’ve got questions, our staff will answer them, and your accountant can provide an in-depth analysis of the financial pros and cons when outsourcing supply chain management tasks. 

7- Tax Breaks

One important factor to consider when examining the benefits of outsourcing supply chain management is tax breaks. While working with overseas partners, companies may enjoy larger tax breaks, but even when SCM duties are handled in this country, companies may qualify for significant tax benefits. 

Of course, every situation is different, so it’s important to discuss the tax implications of outsourcing supply chain management with your accountant. Always keep in mind that, in the final analysis, the objective is to increase profits while providing the highest-quality service possible. Again, Your Logistics staff members are available to answer questions to ensure you have adequate data to properly evaluate the benefits your company could enjoy by outsourcing SCM.

8- Stress-Free Environment for the Team

Outsourcing your supply chain operations can create a stress-free environment for your team. When experts handle things like logistics and inventory, your team doesn’t have to stress about the details. This means they can focus on important tasks like creating new products, making sales, and helping customers. With the supply chain taken care of, the team can work in a more relaxed environment, boosting productivity and job satisfaction. Outsourcing not only makes things run smoother but also creates a happier workplace for everyone.

Choosing Your Supply Chain Management Partner

Outsourcing is a proven solution for companies exploring ways to boost profits and reduce costs, but the key to a successful experience is selecting the best partner. Today, as the eCommerce sector is exploding, not all potential SCM management partners will provide quality service. That’s why industry experts always recommend working with an established company that has a proven service delivery system in place. The success of your eCommerce business depends on finding and working with service providers like Your Logistics. 

Just what problems could arise if the best partner isn’t selected? First, the potential for data loss is real when your partner doesn’t have security measures in place. Make sure your partner uses the latest security practices to protect sensitive information. 

In some instances, client companies start seeing their costs grow due to hidden fees or other unexpected costs. Discuss this issue with any potential SCM partner prior to contracting their services. Again, our team of professionals will always provide transparent fee schedules to ensure there are no surprises.

Finally, there is some loss of control when outsourcing your supply chain management functions. That’s another reason to work with an established company that has a proven system in place. 

Take Action Today to Start Exploring Your Options

Whether your organization is looking for ways to improve existing supply chain management systems or you’re starting a new company, now is the time to explore the numerous benefits of working with Your Logistics. Contact the Your Logistics team today for more information and an evaluation of your company’s supply chain management needs.