Knowing the difference between contract logistics and general haulage is a good starting point for understanding how a logistics company actually works.
Logistics is renowned for being a pivotal game changer in many corporations. Taking businesses of medium-sized companies to global enterprises with intelligent planning and streamlining.
The devil, like most elements of business, is in the detail. The fact that logistics companies consider the aims, projections, constraints, and cost value of the supply chain, results in lower costs, time used more efficiently and seamless management across all stages of the chain.
Furthermore, the management of each section of the supply chain is taken care of with precision and with the customer at the forefront of the picture.
Why do companies outsource logistics?
Not everyone is reaping the rewards of outsourcing their logistics.
Some are still trying to manage communication between a handful of independent operators as well as project manage the day-to-day running of a business. Or some are taking major hits when there is a fleet or vehicle or driver shortage issue. Some businesses haven’t quite found a solution that answers their supply gaps as a result of Brexit or Covid-19.
The answer lies in the fact businesses are looking for a one-stop solution that cuts out multiple external delivery partners and helping companies, impacting positively on their time and project management but are not restricted by a single asset pool or exposed to a single point of failure.
You’ll also find companies benefitting from these points below as well
- Better visibility over data and inventory
- Improved flexibility to aid changes in market dynamics
- Expertise and know-how in how to resolve supply issues
- Performance improvement aligning with the client’s KPIs
- Customs assistance and relationship management
- Freedom to concentrate on your core business
- Immediate access to a range of transportation sizes
- Ability to scale load sizes up and down with ease
Get in touch with X2 today and let’s see how you can level up your logistics strategy this year.
Why is 4PL necessary in logistics management?
With so many impacting factors that can sometimes feel out of the control of operations managers, supply chain managers, project managers, and so on, corporations are often opting for a single solution – 4PL.
Having a strategy that oversees the entire supply chain
You may have heard of or used 3PL before. 3PL will effectively make sure the supply chain flows as it should without complications. However, a 4PL is a master strategy, process, management, and growth tool that has total oversight on a company’s aims and deliverables.
Expand your company with confidence
Once a company steps out of its infancy, there can be some bold steps taken in order to meet demand. Whilst this looks encouraging on paper, the reality of establishing excellent logistical processes is an incredible task without the experience or workforce.
Lean on a highly experienced workforce
The workforce plays a large role in the success of a fully operational logistical solution. From management to drivers to customer service; the whole process needs core people to be feeding into the supply chain to keep it flowing.
Instead of hiring an entire workforce, renting warehouse space, and basically expanding into the logistics sector as a secondary business, companies are recognising the major benefit of getting logistical solutions companies to manage the entire process.
Building a stronger financial picture
Furthermore, the short-term and long-term consideration of cost is extremely attractive. Being able to see how risk avoidance and solution is a common part of 4PL allows companies to forecast with more confidence which most certainly adds value to those establishing themselves for mergers and acquisitions.
Logistical solutions companies will be responsible for many elements that are usually acute pain points for their clients. The freedom to run the core business and not concern themselves with frequent changes in market dynamics allows for development and growth to be at the forefront throughout the year.
Finding a solution for you
X2 offers and supplies 3PL and 4Pl solutions for a variety of companies such as DHL, ADM Oil, Sainsbury’s, and Kent Foods Limited. Helping clients in a wide range of sectors, we strive to implement the best solution for your company’s needs.
Get in touch with us today to explore your options or call us on 01455 220909