Logistics outsourcing

Is Logistics really your core competency?

Are capacity constraints in your supply chain affecting service and costs?

Is your logistics performance sub standard?

Do you question the ongoing capital investment in logistics?

Outsourcing a supply chain or logistics function such as, procurement, warehousing, manufacturing, transport etc (on shore or off shore) can net significant financial, quality and service improvements to an organisation.

Benefits to business of outsourcing your logistics include improvements in:

  • Improving core capabilities and capacity
  • Asset devolvement
  • Information technology
  • Reduction in labour and operating costs
  • Specialist support personnel
  • Absolve industrial relations constraints
  • Improved key performance indicators
  • Value added service to customer
  • Mitigate the cost of complying with regulations.

Typically organisations will outsource their logistics function(s) to reduce operating and asset costs, enabling the organisation to consolidate their focus on what they do best.

Methodology

Our specialists assess the existing operational, service and financial performance, mapping and modeling a forecast over a 5 to 7 year horizon.

A detailed and thorough comparative evaluation on the current logistics performance, compared to the outsourcing option(s), identify a preferred solution.

If outsourcing is recommended and agreed by the organisation, our specialists can competently project manage the following critical phases:

  • Project manage / facilitate the risk of outsourcing
  • Develop a commercial agreement for tendering the outsourcing of services
  • Identification of potential suitable outsourcing providers and complete a thorough evaluation on each
  • Review tender responses and select preferred outsourcing provider
  • Negotiate the commercial agreement with the outsourcing provider
  • Implement the working commercial agreement between the organisation and the outsourcing provider
  • Enable the transition with clear objectives, processes and periodic measurements
  • Manage the development, harnessing and ever evolving outsourcing relationship