If you’re currently outsourcing your transportation management, it’s because you realized that doing so increases efficiency as well as hard & soft dollars to your bottom line.
Some shippers think that once they outsource, their responsibility is passed over to the logistics provider. That is not true! Many companies prefer to keep as much visibility and control as possible.
Here are five things your company can do to maintain visibility over outsourcing:
1. Emphasize clarity – Before you sign a contract, walk through each step of the process. Make sure every step is planned, defined and agreed to by BOTH client and provider.
2. Establish a hierarchy – Outsourcing does not mean the shipper leaves all responsibility at the door. Problems and questions will arise; make sure you have a clear chain of command with defined responsibilities.
3. Create an in-house team – You’ll want to have this team for the duration of the partnership, but it’s especially important during implementation. In-house training will help employees understand the ins and outs of the partnership.
4. Remind your staff that this is a positive change – Sometimes employees start worrying when they hear the word outsourcing. It can mean loss of job security. Make sure they understand that by outsourcing transportation, they can focus on helping the company grow instead of focusing on low value-added tasks.
5. Check performance regularly – Quality, deadlines and cost oversight are all important factors that clients need to keep tabs on. Demand accountability so that you have a clear, documented history if a claim or case of non-compliance ever needs to be issued.