There is one basic rule in the logistics industry, called the 7R principle, which states:
Product of the right quality and quantity must always be delivered at the right point in time, to the right place and customer, at a cost that is right for that particular product.
If a business happens to miss out on any of the 7 conditions, it risks losing customers and the competitive advantage in its respective marketplace. Logistics and the way our industry operates are no different from other industries in that regard. Courier businesses approach their customers with viable outsourcing solutions that deliver services at the desired quality, for a competitive cost, and at a minimum loss of resources used in the logistics chain.
The quality system is not alike for different courier providers and how the individual business model with transportation systems work at a micro-level. In other words, for us, the quality of outsourced delivery services is determined by the logistics management and the correct use of up-to-date infrastructure that altogether serves the purposes of every customer’s complex needs in their supply chain.
Why is the quality of the outsourced services so important for your business?
Outsourcing services from third-party providers is becoming a universal practice for businesses in countries such as the US, UK, Canada, and parts of Europe. By itself, the whole concept suggests that the company will contract its activities in this direction, which is also not their core competence, since it is not profitable for the business to invest time and resources in these functions.
So, the whole concept of outsourcing suggests profitability through partnership and good coordination of functions. In order for that theoretical model to ring true in practice, the quality, and reliability of the provided services are the key points to consider before moving on with this undertaking. If the third-party company has a strong focus on quality, only then, the businesses can be fully confident in their strategy, operations throughout their whole supply chain, and overall credibility as a company. This is absolutely critical if you want outsourcing to work effectively for your business model. If you risk quality, once again, you lose losing customers and resources that may already be scarce.
An outsourcing model that works
As we’ve highlighted already, outsourcing works and could be a largely profitable strategy for a business if you use trusted providers with a strong focus on quality. Once you have established a relationship with a logistics company or another 3PL, you can focus on the organizational aspects of your business and strengthen your core functions. This means that a business with well-coordinated operations (outsourced or not) is more adept at making strategic decisions such as resources allocation, reductions of lead time, increase in product quality and production flexibility, and alternatively high capital turnover. The whole process does not happen overnight but it does work for many clients which rely on the quality of their services and expect the same from the third-party providers they work along with.
How does your business gain a competitive advantage?
Competitive advantage requires a whole composite of smart business decisions and successful implementation. It’s a lot more easily said than done, as many of you can agree. However, quality, trust, and collaboration is the perfect place to start if you are planning on embarking on this journey. Outsourcing a delivery solution that works for you can really allow the business to plan and apply the best management techniques it is capable of. When an organization is dealing with a lot of competition, it all comes down to strategy and implementation by using the best possible resources that your company has access to at this point of its development. By resources, we also mean technology, skillset, and infrastructure to deliver the highest quality, at the right quantity, and at the most competitive price in the respective marketplace.
Courier providers like Zendfast who are specializing in third-party logistics have all the available in-house resources that allow our customers to excel in their order-to-delivery processes.
We help our partners by providing them with bespoke solutions which work for their individual model front and center. This way, businesses not only save a whole lot from investing capital resources and time into their own infrastructure, but they also rely on the most cutting-edge solutions on the market without adding to their operational costs. Alternatively, this helps businesses boost their competitive advantage by offering their customers high-quality delivery services, but also by having full confidence in their outsourced solution so they can focus on strategy and their next successful move as a growing business.