Lets Work Together

 

Shippers:

 

In a world of increasingly thin margins, Choice Logistics helps keep your business on track. From knowledgeable carrier routing, arrangements, we’re all about helping you reduce your expense while increasing overall value.
 

Companies today are facing serious business and technical challenges — increasing demands for customer service, global competition, regulatory and compliance risks, industry consolidation, rising operating costs, downsizing, and more.

 

Fortunately, effective logistics practices can play an integral role in addressing these challenges and satisfying consumers’ needs by ensuring that all products are available in the right place at the right time — and at the right quality and cost.  The ability to deliver as promised often provides a competitive edge that helps organizations attract and retain customers.
 

Logistics Challenges

 

While proven to increase overall supply chain efficiency, logistics can create more work — and more costs — when not practiced effectively. Logistics costs continue to rise.  In addition, the logistics industry faces a number of tough challenges, including:

 

  Fuel prices
  Driver qualifications and shortages
  Congestion
  Government compliance
 

Claims

 

Controlling costs

  Mandates for “perfect orders”

 

The Path Toward Outsourcing

 

With so many complex considerations in logistics, most companies realize that handling all of their transportation needs in-house is not cost effective or efficient anymore.


In-house shipping departments rarely contribute to the overall business productivity for a number of reasons:

 

  Overhead and employees are expensive.
 

Shipping is not their core competency.

  The issues involved are complicated and require expertise employees don’t possess.
  Access to rates and routes aren’t available when needed.
  Transportation is not a revenue-producing part of business operations.
  In-house shipping requires monitoring and retention of human resources

 

Outsourcing some or all of their logistics function to third-party logistics providers (3PLs) gives companies a valuable external resource.

Logistics outsourcing has been identified as one of the most successful methods to reduce transportation costs, improve cash flow and maintain your competitive advantage.


Cost Savings

 

Reducing operating costs is the top business objective of supply chain managers. Majority of clients identified reducing operating costs as their primary goal.
 

Companies that have successfully outsourced transportation programs get, among others, the following benefits:

 
  Reduction in operating costs
  Inventory reduction
  Increase in on-time deliveries
  Reduction of the product’s cycle
 

Order cycle times trimmed by 3 days

 

Service Improvements


One of the most complex problems faced by logistics managers is that the world is never static. Supply chain requirements keep changing. Customer demands change. Manufacturer requirements change due to product changes.

 

“A shipping plan based on today’s data will become obsolete under tomorrow’s conditions. By using a 3PL, companies are able to achieve greater flexibility to remain competitive.

 

Given the constant state of change, it is not surprising that information technology is a top reason why companies outsource logistics, according to Armstrong & Associates. 3PLs’ investment in advanced technology gives companies the ability to keep abreast of technology changes without the associated overhead. Monitoring shipments, enhancing customer service, and anticipating problems are just some of the ways that 3PLs are using technology to benefit their customers.

 

Make the right choice first, call us today!