Jagan Reddy is managing partner for Netlogistik, an integrator of Blue Yonder WMS and TMS solutions. He is a senior executive with more than 20 years of strategy, transformation and P&L management experience in enterprise software businesses. He recently wrote an article for Material Handling and Logistics (MH&L) titled “Supply Chain 101: Outsourcing Logistics.” In this episode of Great Question: A Manufacturing Podcast, Adrienne Selko, senior editor for MH&L, shares Jagan's thoughts on how outsourcing logistics allows companies to free up resources and focus on their core competencies.
Below is an excerpt from the podcast:
All companies are different and the benefits gained from outsourcing logistics depend heavily on the circumstances surrounding a business and its supply chain. That being said, handing off logistics to an external service provider will help most companies:
Access Specialized Expertise: A major advantage of outsourcing logistics is that it provides access to specialized expertise that may not be available from your internal staff. For example, if your business is inexperienced or unfamiliar with international shipping regulations or customs clearance procedures, you’ll benefit greatly from a knowledgeable third-party logistics (3PL) provider who has experience dealing with these types of issues. A provider with this level of expertise will help ensure that your business is compliant with local laws while also improving efficiency within your supply chain.