The five advantages of bundling logistics services
Outsourcing logistics provides peace of mind and often brings many financial benefits. Of course, it is possible to store goods with party A and have party B take care of transport. Ideally, however, a single organization takes over all logistics processes: this is known as bundling logistics services. There are a number of advantages for the customer in outsourcing all components to a single service provider:
1. A single point of contact
Having all logistics services performed by a single organization shortens the supply chain and makes it more manageable. This is especially true when there are questions about logistics. For example, if something needs to be changed in the inventory or the planned transport. At such times, it is useful to have everything handled by a single organization. There is no need to be sent from pillar to post, make arrangements with different organizations, or adjust the planning on your own. One phone call or email to the designated contact person is enough to arrange everything properly in one go. The contact person then ensures that the rest of the logistics components are also adjusted to the new requirements.
2. Consistent service
By having the same partner for all logistical components, the customer will not be faced with unpleasant surprises when it comes to service. Although the various services may be performed by different departments, they are all part of the same company and have the same rules and mentality when it comes to service. The customer can reasonably expect the same (good) service within the same organization. When services are outsourced to different organizations, one of those organizations may cause delays in the entire logistics process due to its poor service.
3. Financial advantage
It is no secret that it is almost always more cost-effective to place multiple components with one party than to place one component with multiple parties. Many logistics service providers offer a discount for cross-selling or offer package deals when multiple services are purchased. In addition, the complete service is faster because the organization knows exactly when the products are ready for collection and a vehicle can be dispatched immediately.
4. Flexibility
Working with just one logistics service provider offers a high degree of flexibility in various ways. The ability to easily increase or decrease the number of square meters for goods storage is one of the advantages. In addition, it is often possible to purchase certain services, such as VAL activities, only when they are actually needed, rather than having to pay for a long(er) period. Furthermore, with a logistics service provider that offers all services, there is no hassle when, for example, complete fulfillment is suddenly needed (even if only temporarily). However, if the logistics service provider does not offer fulfillment, this can cause a lot of hassle, such as having to transfer the goods from one party to another.
5. Personal cooperation
Of course, this does not apply to all all-round logistics service providers, but at HST Group, we strive to know all our customers personally. HST believes that this is the key to successful cooperation. By establishing and maintaining good contact with customers, HST can continue to offer the best service and customers always feel free to contact us if they have any questions or comments. Curious about what HST Group can do for you in terms of taking over logistics services or logistics processes? Request a free quote.