Logistics Information
Benefits of Outsourcing Logistics Services
Corporate Benefits
- Ability to divest non-core activities without divesting control
- Improves cash flow and return on assets
- Release of Capital and Senior Management resources to concentrate on core activities
- A distribution system that adds value to the manufacturing and marketing operations
- A strategic partnership with a company whose core activity is logistics
- A platform to enable alliances with retailers to be built through POS data back to client
- The flexibility to respond quickly to changing market trends without major disruptions to distribution operations
Operational Benefits
- Flexibility to increase output throughput for peak periods
- Defined service levels through Key Performance Indicators (KPIs)
- Reduces labour risks
- Complex picking tasks managed more efficiently through the application of technology
- Productivity gains through application of technology
- FRM© services including scan packing can be managed better by a specialist
- Economies of scale through sharing resources with others
- Local presence for international companies
Information Benefits
- Real time integration of distribution systems into 'host' system leading to accurate and timely data reporting
- Operational Key Performance Indicators (KPIs) easily captured and reported
- Actvity based benchmarking
- Total logistics costs are clearly identified
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