When you outsource logistics, you seek implementation from an external supplier to provide you services that you cannot do it yourself or do it in an efficient way. This is what Rhenus Lupprians is all about. If you try to check the situation some decades ago, many companies massively produced their products, kept them in their own warehouses; managed a transport fleet and distributed those products by themselves. All of these are under one umbrella or their own management.
In the 70s, 80s and 90s, companies found out an increasing expense and complexity in handling the warehousing and transporting by themselves. Fortunately, the outsourcing industry grew up in relation with this and a major decision was delegated to these companies for the non-core or non-strategic activities of the logistics company.
The Basic Statistics and Trends of Outsourced Logistics Companies
Depending on how you look at the statistics, it is verified that around 75% of companies now outsource warehousing and transport. You can start by knowing what RhenusLupprians can do for your business.
Certainly, there are few companies who venture into outsourcing some of their works, but may end up having their services back in-house. However, for many shippers, especially those engaged in ecommerce, outsourcing has become a logical solution to their concerns and issues.
The Main Reasons for Logistics Outsourcing
Few companies outsource their non-core activities due to some motivations like cost. The main reason why choose logistics outsourcing is to save costs and probably have a company enjoy lower supply chain costs when partnering with third party logistics. Other compelling reasons could be running a warehouse effectively. It may take considerable time and resources including investments and technologies in mobile equipment, racking systems, and more. This is what RhenusLupprians does for your business.
Some companies may also find it difficult to handle strategic activities like those competing in. If a company specializes in manufacturing or sales, for instance, they don’t want to bother themselves in managing transport and warehousing.
Outsourcing Should Only Be a Strategic Decision and Not a Strategy
A business owner should never take lightly his decision to outsource logistics. This is especially true for bigger companies with current in-house distribution/warehousing operations. The careless may have experienced some difficulties and shippers may have known to make mistakes and regret their decision to outsource.