The e-commerce industry is booming — with sales expected to grow by 8.8% this year. This growth presents a golden opportunity for businesses to adapt and innovate. To keep up with the world’s steadily rising demand, logistics companies are staying ahead of the curve by accessing new ways to fulfill customer requests and increase sales. One smart way they do it is through outsourcing supply chain management.
Supply chain outsourcing can be beneficial to businesses in e-commerce and similar industries, to support backend functions where most of the action happens. One of the key benefits of outsourcing is back-office or administrative tasks can be seamlessly delegated to an external provider to allow you to better focus on producing great products for customers.
Supply chain outsourcing can be beneficial to businesses in e-commerce and similar industries, targeting certain backend functions where most of the action happens. No matter where you are, there are deliveries to be made and items to be sorted out, after all! One of the key benefits of outsourcing is that these tasks can be seamlessly delegated to an external provider to allow you to better focus on delivering great products for customers and shoppers.
How outsourcing supply chain management can benefit logistics companies
- Reduces costs significantly, creating cost-efficient ratios between labor and operating expenses
- Allows you to leverage advanced technologies to create seamless operations across the supply chain
- Enhances the flexibility in certain sections of your supply chain and simplifies processes to improve overall performance
Nowadays, with technology and a global business environment, your outsourcing partner doesn’t need to be based in the same location! Specialized outsourcing providers such as business process outsourcing (BPO) companies can assemble expert teams to remotely manage computer-based work.
Here’s some examples of what functions can be outsourced. These tasks can be effectively outsourced to BPO companies in other countries, where professional teams can manage these tasks remotely and securely.
- Order Tracking and Inventory Management
Outsourced teams can manage order entries and update inventory databases remotely, including tracking stock levels through integrated tools. By outsourcing supply chain management, an external team can monitor and optimize the inflow of inventory using their own software or integrate it with your existing system.
- Supply Chain Planning and Forecasting
Using data analytics and software tools to predict demand, outsourced teams can help companies manage supply chain disruptions, plan inventory, and forecast demand. Outsourced supply chain management allows easy and fast access to professionals with the relevant skills for the job.
- Procurement Support
Using online technology and multi-channel communication tools, outsourced teams can coordinate with suppliers to negotiate contracts and manage supply schedules remotely. These agents provide supply chain support by using your database to track movements within the procurement process.
- Coordination and Transportation Management
Managing logistics involves complex processes such as route planning, shipment tracking, and coordinating with freight providers. When outsourcing supply chain management, your team can take charge of communication with vendors and suppliers remotely. Purchase orders, invoices, and payments can all be done via software and email correspondence. To reduce bottlenecks, outsourced teams can securely use any transportation management tools you have to schedule and adjust for timely deliveries.
- Customs Documentation and Compliance
Even handling import and export documentation can be handled remotely, all while ensuring compliance with international trade regulations. This eliminates the need for office personnel to handle physical paperwork, and instead submit customs clearance requirements electronically.
- Customer Support
Handling customer concerns related to shipping and delivery can easily be assigned to an outsourced supply chain support team trained in omni-channel support. Even with a support team halfway across the world, you can address customer concerns within business hours, or even adapt to a 24/7 operation.
- Data Analysis and Reporting
Outsourcing benefits companies by providing experts to analyze data of supply chain performance, and report on valuable insights on your performance. As your supply chain operates, they can monitor key metrics like delivery times, inventory levels, and savings for future optimization.
No matter which part of your supply chain you choose to outsource, selecting an outsourcing partner that understands your specific business needs and aligns with your objectives is crucial for success.
FGC+ is an outsourcing provider that can provide end-to-end supply chain outsourcing for logistics companies and beyond. Learn how we can amplify your potential and streamline your logistics operations at www.fgcplus.com.