Before deciding where to make your next investment in supply chain technology, step back and consider whether it makes more sense to outsource. Better yet, visit our blog, Does Your Supply Chain Need a Makeover?, and evaluate the state of your supply chain to see if it’s time to make significant changes. For some companies, it makes sense to use a mix of outsourced and in-house supply chain functions. For others, outsourcing the supply chain to focus on core business functions and put more flexibility into the system makes more sense.
Some of the benefits of outsourcing your supply chain functions include:
Focus on core business
Chances are, warehousing and distribution functions aren’t your business’ core competencies. Rather, they’re necessary side effects of doing business in your industry. Take a look at what you’re spending on hiring, training and retaining employees to manage these functions. What would happen if you spent that time and energy focusing on your core lines of business instead? Outsourcing supply chain management will leave you with extra time to work on marketing, sales, customer service and innovation to drive your business forward.
By working with a third party, you gain access to their expertise, networks and technology, as well as their insights into best practices. Those factors can improve efficiencies significantly. Warehousing and distribution functions alone account for as much as one-third of supply chain costs. Letting a pro handle those functions means you can lower facility costs, too, by removing the need to maintain and operate warehouse space.
And, outsourcing means you can reduce or reallocate the time your HR and IT functions on spending on hiring and training employees and installing and maintaining technology in support of your supply chain.
Check out a recent case study about our work with 21c Museum Hotels for examples of how a third party can significantly lower your costs.
Access to expertise and technology
Working with a third party means they’ll keep up-to-date with current trends and changing technology, so you don’t have to. Instead of always chasing your tail to keep up with the changes in supply chain technology, you’ll be partnered with an expert who’s keeping pace and has the expertise to capitalize on the latest strategies and technology. You’ll have better visibility into your supply chain from end to end and will be positioned to take action, such as eliminating unneeded or redundant steps.
Your partner may also be able to add value in ways that you can’t, like specialized product identification, consolidating and packaging multiple SKUs for custom fulfillment, or advanced inventory tracking.
If you’re ready to experience the benefits of outsourcing your supply chain functions, contact Accuserv for a free consultation and to see how a partnership could propel your business to greater success.