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Outsourcing Logistics Improves Business Outcomes

May 3, 2023 0CourierGeneralTrucking

“Peak performance experts say things like ‘you should focus.’ You need to eliminate the distractions. Commit to one thing and become great at that thing.”

– James Clear, author of the #1 New York Times bestseller, Atomic Habits

A bit philosophical for logistics? Perhaps. But there are thousands of words written to this effect. In Psychology Today’s, To Do Better, Focus On What You Do Well, it’s stated, “The advantages of investing in strengths are manifold. For one, we are usually pulled more strongly in the direction of our strengths, since engaging them is more intrinsically rewarding. Moreover, learning comes easier in our areas of strength. Engaging our strengths is also more likely to produce excellence.” The takeaway? Focus energy on your strengths to make the greatest impact. 

Commercial companies selling a product to customers require expertise in many disciplines to be successful. Whether research and development; design; manufacturing; quality control; marketing or other attributes are core competencies, the logistics of transporting and delivering the product need not be. When a commercial business deploys a self-operated fleet to deliver its product, this will likely drain resources from the company’s core competency strengths. 

What is Fleet Outsourcing?

Running efficient and cost-effective in-house fleets (or private fleets) requires intensive planning, oversight, data analytics, risk management, and cost containment. Counting these amongst other concerns, fleet replacement – or outsourcing the logistics and transportation of your inventory – opens the door to new efficiencies, cost-savings, and operational success. 

Reasons to Consider Fleet Outsourcing

  • Volatile fuel costs
  • Fleet maintenance and rising cost issues
  • Route planning
  • Liability for damaged goods during transit
  • Driver management
  • Courier dispatch and communications

Fleet Replacement Benefits

  • Freeing up internal resources to focus on core competencies
  • Managing the fleet is now the responsibility of professionals leveraging their core competency in logistics
  • Eliminating driver recruitment, onboarding, compliance, management, and payroll
  • Avoiding vehicle maintenance costs and replacement of aging assets
  • Increasing fleet performance and efficiency

Outsourcing delivery to a third-party fleet replacement provider like Crossroads Courier allows a company to concentrate on their business while engaging a logistics partner to handle the fleet. It’s an opportunity to channel resources into what the talent in the organization does best and foster growth. According to NTT Data’s 27th Annual Third-Party Logistics Study, Back-to-Basics, the outsourcing of domestic transportation continues to rise, at 69% this year, up 2% from the previous survey period. 

According to Coyote Logistics in their 2022 article, What is Outsourced Logistics? Everything You Need to Know About 3PLs, “In 2019, 92% of Fortune 500 companies worked with at least one 3PL, which is a significant increase from our initial tracking in 2001, when only 46% of the companies had 3PL relationships.” However, the article points out that outsourcing logistics and transportation management isn’t just for large businesses. On average, small companies continue to outsource upwards of 25% of their total supply chain needs (including fleet services) to a third-party provider. 

Entrepreneur, speaker, and author Gary Vaynerchuk is co-founder of restaurant reservation company Resy and Empathy Wines. He is currently CEO of VaynerX, a New York based communications company. He strongly advocates for operating only from your strengths and outsourcing your weaknesses.

“Whether you’re 9 or 90, stop trying to fix the things you’re bad at, and focus on the things you’re good at,” advises Vaynerchuk. 

Sound advice, regardless of the field of endeavor. Fleet outsourcing can be a key to business success. Focus on what you’re good at and leave the delivery to the experts. Contact Crossroads Courier today to learn more about outsourcing your fleet and delivery needs to our caring and talented team. 

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