How Outsourcing Logistics will be the Best Decision you make in 2022

Work with a broker to help business grow amidst logistics challenges
Photo of trucks and a web of logistics

Six months into 2022 already and supply chain challenges continue to remain top of mind for many companies. With diesel prices at record highs, new fuel surcharges imminent, and carriers playing catch up following recent border closures, the hope that 2022 would bring stabilization in the logistics industry now seems like distant wishful thinking.

Navigating the volatility of logistics and supply chain management is challenging even for those who consider it their core competency. Even Fortune 500 companies who typically have robust logistics departments rely on outsourced logistics to help manage their supply chains. According to a study by Armstrong & Associates, nearly 90% of Fortune 500 companies use third party logistics providers (3PLs).

Outsourcing logistics will remove the extra burden from your team and allow them to refocus on growing your business. Here are just some of the benefits you could see.

Do What You Love

Let’s face it, for most business owners, arranging logistics isn’t what inspired you to build your business. Outsourcing your logistics allows you the time to focus on developing new products and services, mentoring your employees and providing better service to your clients. Get back to doing what you love and take your business further.

Improve Resiliency and Boost Savings

2022 has shown us that severely limited capacity plagues all modes of transport. Using an outsourced logistics provider ensures that you will have stronger buying power with transport companies and a multitude of carrier options. Third party logistics providers often leverage a network of thousands of carrier partners to help fulfill the needs of their clients. While the improved buying power of outsourced logistics providers often means lower freight costs, the real cost savings comes from working closely with a third party logistics expert, allowing them to better understand your business needs, and designing a more efficient logistics solution for your business.

Grow Confidently

Having an outsourced logistics provider ensures that as your business grows, you don’t have to worry about adding additional staff to your internal supply chain team. Your 3PL partner should grow with you and dedicate additional resources to your growing logistics needs. Growing in a new market? Your outsourced partner can help you make strategic decisions in new geographic markets and even help set up and manage new distribution facilities.

Be More Agile in Your Operations

With the volatility of logistics, working with a third party logistics provider will allow you to make last-minute changes to the flow of your goods. When job sites or clients aren’t ready to receive your product, third party logistics providers can help arrange short or long term storage solutions. When clients are urgently needing your goods, third party logistics experts can leverage air or expedite options in an easy pivot to ensure your goods are delivered on time, every time. 

Win More Clients

Not only will outsourcing your logistics give you more time to ensure you continue winning with your existing clients, it will also give your team more time to win new business. By outsourcing your supply chain, you’ll have the added benefit of selling a more resilient supply chain to prospective clients, something that according to a recent McKinsey report, 93 percent of procurement leaders are optimizing for. It’s a win-win scenario for your business.

Just like you would outsource your marketing or your IT needs, logistics done right is most often done by experts. Don't pull your hair out trying to figure out logistics by yourself, outsource and team up with experts that can help grow your business. Have LibeRate Logistics in your corner and arm yourself with the necessary global supply chain insights to help move your business forward, it could be the best decision you make in 2022.

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