As a business owner, you face a whole host of big decisions every day. Most of them will revolve around money and efficiency! Nowhere is that more important than your deliveries and logistics and we highly recommend outsourcing many of your business functions. Customer service, accounting and web design are just three for example. But, when it comes to logistics and delivery services, we’re on the fence. On the one hand, it makes a lot of sense to keep control in-house. On the other, you could unlock a wider market by outsourcing. When using an external company like Lytx, as their main focus is on fleet management, they will often have better and more advanced technology to use too, another reason why outsourcing is a great idea. Anyhow, let’s take a deeper look.
The argument for keeping it in house
Keep control of costs – When you keep your delivery service and logistics in house, you can hold onto the costs better. You’re in control of every aspect and can make cutbacks where necessary. You can group your insurance under one policy with Insure Fleet, for example. You can lease fuel efficient vans and stay in control of their maintenance. Keeping it in house gives you control of the costs.
Monitor performance. – By keeping your delivery service close to home, you can monitor its performance. You can install tracking software and monitor delivery routes. You can take actionable steps to improving or changing the process. When it’s handled by a third party, that’s all out of your hands.
Improve service – When you’re in charge of deliveries, you can ensure your service is impeccable. You choose the drivers and you’re in charge of their manner and professionalism. When out on the road, your delivery service is the face of your business. Do you really want to leave that in the hands of a team who know little about your company?
Efficient domestically – If you do most of your business in the same country, you can be more efficient. Local teams can be engaged quickly and you can have goods on the road within the hour. When the large proportion of your business is in the local area, it makes business sense to keep things in house.
The argument for outsourcing it
Reach the far corners of the globe – Large logistics companies are well set up for global operations. They have offices and warehouses on every continent and can make things happen fast. If you’ve got your eyes on the global market, hiring a third party could extend your reach.
Cut out customs and export hassle – If you’ve ever tried to ship abroad, you know the difficulty involved. When you decide to outsource it to a logistics company such as CSA Transportation, you will see they have developed a swift and smooth process for dealing with customs. They are usually well recognised and can pass through quickly. More importantly, they’ll take all that stress out of your hands. If you don’t have the time or the inclination to manage and process delivery orders, it could be worth it. You may pay extra, but it could free you up to focus on other aspects.
The choice will entirely come down to the nature of your business. If you like to maintain control, monitor performance and you operate domestically, keep it in house. If you operate on a global level and want to minimise hassle, think about outsourcing.