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One of the most important keys to a company’s success is logistics management. That means you must have the right people in charge of your supply chain management functions whether you are using in house people or outsourcing your logistics management functions.
Your customers have to be your primary concern which means your logistics management team must be customer-oriented at all times. Is this possible if you outsource logistics management functions? Certainly they will not have the direct concerns of the people within your organization; however, they will be concerned about order fulfillment and adhering to the terms of their contract with your company.
If you plan to use in house people for your logistics management team, you must be certain you hire people who understand the importance and functions of the entire supply chain management operation. Even if you plan to hire people for different functions within the supply chain areas, those key people must understand the way the entire operation works. If your staff managers do not understand the entire operation, there is little chance they will understand the importance of logistics management and why they must perform in certain ways in order to meet the needs of the customers.
If you plan to outsource your logistics management, you will have little control over the logistics management team; however, you want to choose a company that has a reputation for good customer service and logistics management skills. The outsourcing company you choose needs to understand the importance of order fulfillment and must be willing to preserve the good reputation of your company when it comes to prompt shipment and delivery. Remember, outsourcing your logistics management functions can only be cost effective if the company you choose adheres to the needs of your customers.
Order fulfillment is essential to the success of your business and must be paramount in the minds of those who handle logistics management for your company. Some companies deliberately choose to handle those operations with their own staff of employees because of the fear of a lack of loyalty by outside contractors. While this may not always hold true, it is certainly something you need to review if you plan to look for an outsourcing company for your company’s logistics management functions. Only if a company saves you money without costing you customers is it worth the investment you will spend to outsource those functions.