Does it take long to outsource logistics?
The answer varies significantly.
Watch the video below and find out valuable insight about this topic!
Key Steps in the Logistics Outsourcing Process
Logistics outsourcing, including warehousing and transport, involves several steps. First, document what you’re outsourcing. Then, decide which suppliers to invite to tender, brief them, and send out the necessary documentation. Suppliers need time to absorb data, develop solutions, calculate resources, and estimate costs.
Next, evaluate the submissions, select the best ones, inform the chosen suppliers, negotiate contracts, and finally, implement the contract. So, how long does all this take?
Different Time Frames Case Studies
Long
We worked with a government organization on their logistics outsourcing, starting 18 months in advance. Six months were spent on internal work and documentation. Suppliers had two months to prepare their solutions. Including evaluation and contract implementation, the process took 18 months. This is unusually long.
Short
A company faced an urgent issue with their 3PL provider, needing to vacate the warehouse in six weeks. With some preparatory work already done, we identified potential providers for logistics outsourcing, briefed them, and gave them two weeks to respond. Despite the tight timeline, we managed to transition their warehouse operations just in time.
These examples show that logistics outsourcing can take from a few months to a year, depending on complexity and preparedness.
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Watch the full video above for more details on this topic!
Related articles on this topic have appeared throughout our website, check them out:
- Struggling with Logistics Challenges? A 3PL Might be Your Salvation
- Insourcing or Outsourcing Logistics: Don’t Choose the Wrong Reasons
- The Power of Outsourcing for Supply Chain Improvement
- 6 Quick Tips for Successful Logistics Outsourcing
- 10 Common Pitfalls to Avoid in Logistics Outsourcing
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated June 10 2024, under the title “3PL Logistics: How Quickly Can You Outsource Logistics?“
