5 Reasons to Outsource Home Delivery

5 Reasons to Outsource Home Delivery

Posted by Rob Davis

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1/27/16 4:00 PM

"It takes many good deeds to build a good reputation, and only one bad one to lose it." -Benjamin Franklin

Operating a successful retail business is no easy feat. Years of building a strong reputation can be easily forgotten with one bad experience. Unfortunately, in today’s world people are 10 times more likely to share negative experiences with their network then they are to share a positive one. To help you weigh out this decision we’ve created a list of the top 5 reason why retailers outsource: 

  1. 1-Lower Costs:

When you outsource, you can avoid carrying costly overhead expenses associated with fleet maintenance, insurance expenses, fluctuating equipment demands, recruiting and fixed warehouse or cross-docking expenses. You can also avoid the responsibility of employee wages, workers’ compensation, and liability that come with maintaining your own in-house staff. All of this enables you to reduce the total amount you pay transporting, warehousing, delivering, and installing products, while benefiting from predictable, transparent pricing.

  1. 2-More Efficient Operations:

When you outsource, your retail logistics can become more efficient because you’re able to leverage the proven processes and expertise of a company whose sole focus is on logistics. Plus, your logistics partner can respond quickly to needs by shifting regional or executive support as necessary. When outsourcing you can hold your logistics provider completely accountable for handling your transportation, deliveries, warehousing, installations, and aftermarket support to the standards you set. (After all, it’s much easier to replace an outsourced vendor who isn’t performing well than it is to get rid of an entire internal department.)

  1. 3-Better Focus:

As a retailer, your focus is on selling your product and serving your customers – logistics is often considered a headache in your business. When you outsource, the business of your partner is logistics – it’s an expertise that they’re dedicated to. When you find the right partner, you’ll discover that your business will improve, your customers will be happier, and your costs will go down because you’re able to do what you do best, and your logistics partner is able to do what they do best.

  1. 4-High Accountability:

One of the concerns many retailers have with outsourcing is the perceived loss of control and accountability. This can be overcome by hiring the right partner – one who will take your business seriously and be willing to be held accountable to your performance standards. Is your provider open to performance-based incentives? Your logistics partner should take responsibility for the care of your products and your customers.

  1. 5-Greater Innovation:

The philosophy that “two heads are better than one” holds true when describing the benefits of outsourcing. A quality logistics partner will team with your business to accomplish your specific goals. They’ll apply their expertise in ways that improve your operations and satisfy your customers by bringing innovative ideas and technology to the table. They will commit their resources in ways you might not be able to do yourself, to accurately track the movement of every product throughout the delivery cycle.

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Topics: Last Mile Delivery