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What Is Supply Chain Outsourcing And How It’s Useful

Outsourcing of supply chain duties refers to hiring a third-party company to handle warehousing, inventory, shipping and tracking duties for your company. If you are struggling to maintain and properly handle your customer orders and their requirements then outsourcing may be the next step to take. This can help you to reduce your overall labour times and streamline your costs by using a third-party company to handle these jobs. There are some key areas in which outsourcing can be beneficial for your company. While there are many ways you can effectively streamline your business operations, outsourcing your supply chain services can greatly impact your customer service and earning potential.

Here we detail some of the main functions of outsourcing, and how they can effectively assist your business in lower manpower and time constraint concerns when it comes to supplying your customers with your products.

Shipping & Receiving

One of the biggest time challenges involved in businesses can be handling shipping and receiving departments for your products. Receiving requires manpower to receive and count the inventory that is arriving at your company, and shipping involves even more manpower. If you find yourself struggling with the demands of these procedures, then you will find relief in hiring a third party to handle these demanding areas of business, while you can focus on marketing, customer servicing, and otherwise publicising and growing your business.

Shipping and receiving can be some of the most time-consuming and taxing labour for small business owners, and can directly lead to costly errors and lost time. If you are struggling to meet all your orders in a timely fashion, then outsourcing can greatly benefit you and your bottom line.

Warehousing & Inventory Control

After your products have been received, they need to be logged into your inventory. If you lack the infrastructure to handle the inventory requirements of your growing company, then outsourcing can be your saving grace. In hiring a third-party supply chain service you will find less of your time going to inventory control, and also will suffer fewer losses due to human error and lack of appropriate inventory controls.

Having a third party handle your inventory and storage also means that you need to supply and pay for less space, and especially for a growing company, this can translate into huge savings for things such as rent and storage costs. Third parties will receive your goods, inventory them, house them, package them and ship them, leading to much less manpower needed on your part. This also translates into less stress and more time spent developing your business, which leads to greater profits and fewer losses. You can’t go wrong!

Order Fulfilment & Returns

When you have a professional company handling your order fulfilment you will not need to spend time completing orders. They will handle the packaging, shipping and tracking requirements of your orders. Using professional 3PL services you will simply need to submit your electronic orders and all the leg work will be done for you. Order returns can also be incredibly time-consuming, as returns need to be re-received and re-entered into inventory. Third-party supply chain services will allow you to avoid this process.

Warehousing, inventory, shipping, receiving and order fulfilment can take a tremendous amount of time out of your day. If you are a small business order, then these requirements can take up all the time you have in the day. This leaves very little time for you to focus on marketing, growing your business and handling customer service concerns. By outsourcing these tasks then you will find yourself free to focus on growing your business, streamlining your services and targeting the market to see your profits grow.

If you are struggling with any facets of your business then it is worthwhile to take a look at how your business runs, and do a detailed audit of where you can save time and money. Chances are you will find your supply chain needs are dramatically impacting your bottom line, and by outsourcing these specific jobs you can save money and time to focus on the other operational aspects of your company.

Supply chain outsourcing is an incredibly effective way to meet your storage, shipping, receiving and inventory needs, and can also help you more effectively service your clients, be it in shipping or returning your products. Streamlining your supply chain services will go a long way to reducing your stress and help you to increase your profits. Vene if you only want help with certain aspects of your supply chain services, it is worth taking a look at what services can be offered to you and how they can help your business.

Challenges Remain for Industrials

The Industrials sector includes capital goods, commercial and professional services, and transportation. Disruption arising from COVID-19 has accelerated trends already apparent in the industrials market – particularly digitalisation and trade volatility – and transformation has gone from a “nice to have” to a necessity, according to the latest findings from Baker McKenzie.

The law firm surveyed 700 company leaders in six industrial sub-sectors in early 2020, and again at the end of the year after the pandemic had taken hold of the global economy.

Interviews with sector leaders highlighted renewed action and energy, with companies looking to acquire technology and reimagine systems, networks and services to thrive in future.

A License to be Bold: Transforming Industrials covers four areas of focus: adapting to the new market; digitalising for growth; disruption-proofing supply chains; and sustainability.

Nikolaus Reinhuber, Global Chair of Baker McKenzie’s Industrials, Manufacturing and Transportation industry group says, “Our findings show that disruption arising from COVID-19 has accelerated trends already apparent in the market – particularly digitalisation, trade volatility and the importance of sustainability – and transformation has gone from “nice to have” to necessity. There is a significant imperative to change, with greater stakeholder buy in and long-term viability outweighing short-term performance.

Those organisations that meet disruption with a bold and innovative vision and execute effectively on it, will be best placed to adapt and grow over the coming decades. The industry has an imperative to change and a new license to be bold – the stage is set for transformation.”