Logistics and supply chains are the backbone of any business. They ensure that the goods and materials are efficiently transported and delivered to their destinations.

A robust and well-optimized logistics and supply chain system reduces the operational costs for businesses. It also helps improve the satisfaction levels of customers by delivering the products on time. 

However, businesses consider outsourcing their logistics and supply chain operations to a 3PL service provider.

Managing the in-house logistics is costly as it requires huge investments. However, supply chain outsourcing can save businesses huge amounts of money. It also provides the flexibility to scale up or down the operation when needed.

In this blog, we shall explore some common myths about logistics outsourcing. But before that, let us learn a bit more about outsourcing supply chain operations. 

What Is Logistic Outsourcing? 

Logistic outsourcing means hiring an external outsourcing service provider to manage the supply chain operations for your business.

In logistics outsourcing, the third-party service provider takes care of and manages the supply chain operations for other businesses.

It includes receiving orders, packaging, labeling, shipping, tracking, and then delivering products to customers.

Businesses choose to outsource logistics and supply chain operations as it saves them money and time. Moreover, it also streamlines and optimizes the supply chain operations. 

5 Myths About Logistics Outsourcing 

Here are the top 5 myths about supply chain management outsourcing​.

Myth 1: It’s All About Moving Goods 

People think that logistics outsourcing means just the transportation of goods and materials from one location to another.

However, this is partly true. But it also includes other aspects such as warehousing, product packaging, inventory management, order fulfillment, customs clearance, and even demand forecasting. 

These tasks are as important as the transportation of goods. Ignoring these services may cause disruptions in the overall supply chain of businesses.

Logistics and supply chain outsourcing is a multifaceted discipline. It involves much more than just the transportation of goods.

A third-party service provider manages all the abovementioned logistics outsourcing services. 

Myth 2: Only Large Companies Need Logistics Outsourcing 

Another common myth is that only large organizations need logistics outsourcing. People believe that only big organisations outsource their supply chain operations. 

However, this is not true. Logistics outsourcing is as beneficial for small companies as for large organizations. 

Big corporations are significantly benefiting from outsourcing their logistics and supply chain operations. 

However, a small organization also needs to outsource their supply chain operations to 3PL service providers for cost-saving benefits and better efficiency. 

Small businesses and startups don’t have enough funds to manage their logistics operations independently. 

Therefore, they need to consider outsourcing these services to an external service provider such as Cargaison Express. 

Myth 3: Cost Reduction is the Only Goal 

‘Cost reduction is the only goal’ is another popular myth about logistics outsourcing. Although cost reduction is an important benefit, logistic outsourcing also focuses on other aspects as well.

Logistic outsourcing is done to streamline the supply chain operations and enhance the efficiency of these operations. 

The main goal is to deliver the product safely and quickly to the customer. It indirectly benefits the organization itself. 

When the products get delivered in the best condition and in the minimum time, the customer feels happy and satisfied. And it is said that a happy and satisfied customer brings more business. 

Therefore, logistic outsourcing is not just aimed at cost-saving benefits. It provides other important benefits as well, that are much more beneficial for the organizations. 

Myth 4: Difficulty In Scaling Operations 

People believe that by outsourcing their logistics, they will not be able to scale their supply chain operations. 

However, this is not true. One of the reasons why businesses outsource their logistic is the ability to scale their supply chain operations when needed.

As the market demand keeps fluctuating, businesses may sometimes receive more or fewer orders depending on the market situation. 

A third-party logistics service provider such as Cargaison Express can help businesses easily scale their supply chain operations when needed. 

External service providers have the necessary infrastructure, technology, and workforce to quickly adapt to changing business needs. 

In fact, outsourcing logistics often makes businesses more agile and responsive to market changes. 

Myth 5: LowQuality Service 

Many believe that outsourcing their logistics operations can decrease the service quality, which may affect their business.

However, this is not true. Outsourcing logistics services to an external service provider like Cargaison Express ensures that the service quality is maintained, if not enhanced.

One of the main reasons why businesses consider outsourcing their supply chain operations is for better service quality. 

In in-house logistics operations, it may be difficult for businesses to maintain or sustain the quality of service. In it, they have to manage other aspects of business as well, like sales and marketing. 

However, third-party logistics service providers are completely focused on supply chain operations. It ensures that the best quality service is provided to their clients. 

Therefore, outsourcing logistics services can improve service quality as compared to in-house logistics. 

Cargaison Express: Trusted 3PL Service Provider 

Logistics and supply chain plays an important role in any business. Efficient logistics and supply chain operations ensure safer and quick delivery of products to customers.

However, managing in-house logistics is challenging as it requires significant investment in infrastructure, skilled manpower, and technology.

Therefore, businesses consider outsourcing management for supply chain operations and logistics service to an external 3PL service provider.

If you are looking for a trusted logistic outsourcing service provider, choose Cargaison Express. 

We are one of the most trusted 3PL service providers that is known for providing quality supply chain outsourcing services to clients. Get in touch with us for reliable logistic outsourcing services. 

FAQ’s 

1. What is logistics outsourcing? 

It means hiring another company to manage your supply chain tasks like packaging, shipping, and delivery. 

2. Is logistics outsourcing only for big companies? 

No, even small businesses and startups can benefit from outsourcing logistics. 

3. Is cost-saving the only reason to outsource logistics? 

No, it also helps improve delivery speed, service quality, and overall efficiency. 

4. Can I still scale my operations if I outsource logistics? 

Yes, third-party providers help businesses grow or reduce operations easily as needed. 

5. Does outsourcing reduce service quality? 

No, trusted providers like Cargaison Express focus on high-quality logistics services.