The other day, we talked about the most popular back-office functions that logistics companies tend to outsource. Since that’s largely the “how” behind this process, today, we’ll talk about the “why.”
So, why do logistics companies outsource their back-office functions? Isn’t the workforce at home sufficient? What about security concerns? You would be sharing sensitive data with outsourcing partners, right?
Okay, so let’s go over all the usual benefits that outsourcing gives logistics companies, and how they address the aforementioned concerns:
1. Lower Operational Costs.
This is the biggest benefit that outsourcing brings to logistics companies. Instead of adding experts to your team at local rates, you can do the same abroad at a fraction of the cost.
Outsourcing also removes the need for additional equipment or office space while still providing the benefits of additional personnel.
2. Access to a Wider Pool of Highly Skilled Labour.
There’s a largely untapped yet highly qualified workforce all over the world. When you outsource, you get to access this talent pool. Thus, you’ll find no shortage of expert and well-trained remote workers handling admin work with matchless efficiency.
3. 24/7 Support.
Most outsourcing companies have the infrastructure in place to provide round-the-clock service. Their remote talents also possess the experience in handling work schedules that accommodate various time differences.
Hence, you can be certain of constant and high-quality support for your business. (Not to mention, more bang for your buck.)
4. Leverage For Latest Services and Technology.
The right outsourcing partner invests in all the latest technologies and software for admin tasks so that their clients won’t have to. This way, their remote talents can perform back-office tasks optimally, boosting their clients’ profits even further.
As a bonus, you won’t need to worry about software or equipment faltering during your business’ peak season.
5. Optimised In-House Processes.
Outsourcing functions that your company doesn’t specialise in frees you to focus on the ones that do give you a competitive edge. You can then work on faster turnaround times for existing clients and projects without worrying about essential yet non-core operations.
6. Top-notch Data Protection.
Remember what we said about data protection concerns? Yeah, well, outsourcing companies are well aware of those, so they already have safeguards in place.
From investing in the best security software to developing the right safety protocols, they’ve got all the bases covered.
7. Sustainable Scalability.
Outsourcing offers plenty of flexibility. You don’t have to take on employees for the long-haul when your customer volume fluctuates.
No, you can opt for project-based hires when you land a huge commission or during peak season.
Conversely, outsourcing companies can help you scale immediately, should a client suddenly waltz in with a standing order that’ll triple your business. You won’t have to worry about hiring and training additional staff because they’ll have those ready for you in a heartbeat.
Running a logistics company can be tricky. You’re constantly inundated with massive amounts of information, all of which is crucial to holding up your end in the supply chain. Furthermore, while back-end operations don’t directly bring in revenue, your business will flounder if you fail to stay on top of them.
Thus, outsourcing is arguably the easiest solution. For a competitive price, expert remote talents can take the load off your hands, allowing you to streamline your core operations for maximum profit.
The Philippines is consistently among the top outsourcing countries. Here, the strength of the Australian dollar means you can hire more people for less, while still paying decent salaries. Remote Filipino talents also boast the highest English proficiency skills in the region, making collaboration a lot easier.
Remote Staff has been scouting and recruiting top Filipino remote talent for various Australian businesses for more than ten years. Some of our most loyal clients come from the logistics industry, and they’ve had great success with our services. Apart from helping to onboard their remote staff, we also provide ongoing support to ensure harmonious working relationships and thus, business stability for our clients.