Why Do Companies Choose to Outsource?
Are you faced with the decision between insourcing or outsourcing your company’s warehouse operations? Leaders in many companies, across various industries, eventually must make this choice. Above all, your company’s core business focus should be the most critical deciding factor.
Insourcing warehousing operations requires substantial upfront capital costs and the allocation of essential resources, including people, technology, and time. This distribution of resources will deter focus from your company’s core competencies and continued innovation, impacting its ability to foster sustained growth.
The choice to insource your warehouse operations will inevitably result in a full-blown logistics operation within your product- or service- based company. As the operation grows over time, it will require additional valuable resources to maintain efficiency. Ultimately, most company leaders elect to outsource their supply chain operations to cut costs and refocus on their core business.
Considering this, take a moment to ask yourself: is logistics the core focus of my company?
If the answer is no, then outsourcing your warehouse operations to a dedicated supply chain solutions provider is your most practicable option.
Benefits to Outsourcing Your Supply Chain Operations
There are many advantages to hiring a third-party logistics provider. Supply chain solution companies are constantly adapting to new customer requirements, pricing pressure, and the need to innovate. The best providers continuously evolve their people, processes, technological systems, and material handling equipment to better serve their customers.
After hiring a supply chain solutions provider, your company would realize considerable benefits—the most significant of which are listed below:
- Staff with industry expertise leading to better solutions, more efficient operations, and higher levels of customer service
- Access to an advanced warehouse management system for increased inventory accuracy
- Largely reduced upfront capital costs and operating expenses
- The establishment of Key Performance Indicators (KPIs) for supply chain performance evaluations
The most significant benefit to outsourcing, however, links back to your core business focus—hiring professionals to manage your supply chain operations allows your company to devote its resources to core competencies that drive growth and profitability, rather than warehousing and distribution.
WOW Logistics® Supply Chain Solutions
WOW Logistics has more than forty years of experience designing, building, and managing warehouses. We’ve grown to expand our service offerings beyond 3PL warehousing—our integrated supply chain solutions exist within three core business areas: Operations, Real Estate Development, and Commodity Purchasing. Food-grade storage expertise, top-tier technology, and our commitment to customer satisfaction have established us as an industry leader within supply chain management. The image below provides a simple overview of our service offerings. How can we help your business?