The logistics industry has witnessed significant changes over the last few years. It is under continuous pressure to reduce its operating costs. Accordingly, organizations are striving to find means to improve resource allocation & utilization, bring cost efficiencies, and optimize their overall processes.
This blog throws light on how tapping the potential of business process outsourcing can help enterprises to achieve logistics optimization
According to the industry experts, logistics activities can lead to high costs, which in turn can adversely affect the competitiveness of an organization in the marketplace. It is for this reason; most of the businesses outsource their logistics activities, such as freight forwarder, delivery planning, etc. to a reliable vendor.
Most of the industry experts consider logistics optimization as a science, which is backed by data as well as cutting-edge information analytics. This facilitates in bringing competitive edge to small-mid size and large manufacturing companies. The best practices followed by the third party service providers include:
* An objective and successful plan uniquely custom-built in line with a manufacturer’s requirements and objectives. A vendor needs to take into account all business and operational constraints as well as strategies. In addition, it is significantly important to have a back-up plan for identifying uncertainties and deviations. This will enable manufacturers to act in response to the changing environment.
* One of the most frequent mistakes made while selecting a logistics optimization plan is to create a process, which is eventually not sustainable. In this case, once the network is completely designed by the vendor, it cannot be left unattended. Thus, while outsourcing logistics network, an organization needs to ensure that it is created in such a way that minor tweaks can be made later parallel to the changing business requirements, new policies, and sourcing changes.
Moreover, the transportation and logistics companies rely on the service providers to get business visibility, cut-down the time lag between an event & an action, efficiently streamline & modify existing processes without replacing them, flexibly change business rules for seasonal and segmented supply chains, and removing rigid parameters to maximize output.
Hence, logistics network outsourcing solutions acts as a continuous re-engineering engine, which uses an appropriate mix of human intelligence and technology to enable businesses achieve higher accuracy, faster speed, and lower costs without compromising on their business continuity. In this light, call centers in India are known for providing best-in-class outsourcing services at highly economical prices.