'Better, cheaper, faster logistics' through outsourcing

Slashing costs while upping logistics efficiencies is like the quest for the holy grail for importers and exporters – and outsourcing parts of the supply chain is key to achieving this. But that’s provided the supplier is more efficient or skilled in performing the required services than the company is, says Rob O’Byrne, owner of Australiabased consulting firm Logistics Bureau. He said in a blog that globally, 85% or more of businesses outsource some part of their supply chain operation or management – most often warehousing and transport – to cut costs and improve efficiencies. The benefits of outsourcing have been well documented – it provides an effective means of quickly accessing more space, technology, or other resources while the business acquires a degree of flexibility in resourcing and a more variable cost structure. Director of JTR Freight, Thaven Naidoo, told FTW that importers and exporters could achieve a better, cheaper and faster supply chain by doing their “due diligence” on a third party logistics provider and ensuring they find a partner that can manage their supply chain more efficiently than they can. “Also, select a supply chain solution that has been tailored for your specific industry. Do your homework and start your research with systems that were designed for companies in your industry,” he said. Q&A What are the biggest contributors to the costs across the supply chain? • Finance charges • Demurrage • Transportation time (including border stops • Infrastructure charges (tolls/ports) James Barrow, Lombard Insurance • Poor planning • Lack of skills and training • Bad attitude by employees • Limited amount of accurate visibility across every sector of the supply chain Thaven Naidoo, VJR Freight • Transport costs • Manufacturing costs Christian Tshiabua, Nik\International and Logistics CAPTION 85% of businesses outsource some part of their supply chain operation – most often warehousing and transport – to cut costs and up efficiency.