Logistics is the key element for effective supply chain management. Efficient logistics services assure goods are delivered in a timely manner and customers remain happy. But logistic business processes face a lot of challenges. The constant battle for cheaper prices and quicker delivery times has placed immense pressure on organizations and forced them to identify new means for creating process efficiencies and price advantages.
Business Process Outsourcing (BPO) is a common method companies turn to for cutting costs, helping their operations run more efficiently, and freeing up time to focus on their core competencies. Labor intensive back office logistics tasks can be automated with technology or managed more efficiently by a remote team especially dedicated to this kind of work.
The right mindset for Logistics Business Process Outsourcing
To make sure your company is ready for BPO it is essential to get all heads in the right direction and propagate the same attitude towards it throughout the company:
- Ensure BPO is a CEO priority: BPO succeeds for logistics companies when there is clear visibility of the CEO behind the wheel during uncertain times.
- Keep it simple. This means being realistic about the aspirations for the program in times of economic uncertainty, and focusing only on obtaining the benefits that truly matter now: Speed to cost reduction with no diminution of quality.
- Move fast. There is no change without urgency and if moving quickly to implement BPO is not seen as vital to the basic survival of the company, it will not produce the desired results.
- Develop a realistic deployment strategy that builds up steam over time after the success of initial phases. This avoids failures due to unrealistic expectations.
- Debit budgets in advance. Building BPO savings into the current year’s budget in advance ensures managers have no excuse but to be committed to the implementation of the BPO program or find some other way to get the cost out fast.
Finding the right outsourcing partner
The main purpose of logistics and supply chain is to determine the key tasks and goals to making businesses run better. BPO helps to enable this focus, but doing it successfully requires an outsourcing partner who brings resources, industry experience and a sound process to the table. Finding the ideal outsourcing partner can be tricky, but Alumnos can offer you full guidance during this process.
Even if you have a successful match with an outsourcing partner, the process of managing logistics for any large company still remains a complex task. It involves a vast network of data, technology, suppliers, as well as countless other details. Assistance can be very useful during this transition to BPO and so we can provide you with a clear cooperation model designed to your specific needs.
Benefits of Logistics Business Process Outsourcing
When your remote team is up and running you will see the true benefits of Logistics Business Process Outsourcing:
- You maintain oversight and control through improved governance.
- Your profitability will improve through the rationalization of your supply chain, process efficiency and procurement leverage.
- You will have less exposure to risk as we ensure full regulatory compliance across regions, provide an environmental roadmap and impose stringent KPIs.
- You’ll have lower operating costs as we take on your non-core processes.
- Enhanced productivity in your back room processes means you can focus on the front, and delighting your own customers.
- Finally, BPO is a great way to tackle inertia – the ever present idea that things are done in a certain way because “that’s how it always has been”.
One way to describe the concept of logistics is to say it is controlling complexity through efficiency. As a logistics professional, you know there’s a problem that needs fixed when your processes, technology, and data are not optimal.
If you see inefficiencies within your own operation, get in touch with us and we will help you to find the right outsourcing partner for your logistic needs.