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Should you outsource your delivery Needs?

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The British economy is facing a number of challenges at present, from the looming spectre of Brexit to the threat of UK steel plant closures. This is having a huge impact on business sentiment in England, Wales and throughout the UK, where firms are increasingly loathe to invest in near or long-term growth. The danger is that this creates a stagnant business market, where consumer confidence also diminishes and less money is reinvested into the economy as a whole.

Should you outsource your delivery needs in the current climate?

It also forces business owners to make key decisions, such as whether or not to outsource operational tasks like logistics. After all, delegating the shipment and delivery of goods through a reputable service provider can help you to expand your business into new markets, and while cost is involved this strategy can also deliver increased profits. There are several things to consider before you make a decision, however, including the following: 

  1. Do the Maths add up?

This is perhaps the most important consideration, as every single business cost must be measured against its impact on turnover and profitability. After all, there is little point in partnering with an external logistics firms if they cannot help you to reach new markets or improve efficiency, as this investment would not deliver a tangible return. So when considering outsourcing your firm’s logistic needs, calculate your estimated costs and measure these against the potential profit that exists within new target markets.

This will leave you with a ball-park profit (or loss) that informs your decision.

  1. Can you find a service Provider to meet your needs?

Even if outsourcing is a viable option, you will need to identify a service provider that can meet your logistic and budgetary needs. After all, every business operates within a budget and has clearly defined target markets, and potential partners must be able to meet both of these if they are to offer value.

Parcel2Go are able to ship small shipments overseas, for example, making them an option for SME’s that are hoping to reach specific international markets. Other firms may specialise in bulk shipments in the UK, but the key is to ask strategic questions to ensure that your chosen firm is capable of meeting your expectations.

  1. Is it cheaper do keep logistics in-house? Consider the scale of your business

If your firm is at a start-up stage, it may be too soon to consider outsourcing logistics. If you only have a few select customers and delivery routes, for example, it may be cheaper to invest in a small fleet of vehicles that can transport goods directly.

The most important thing is to consider the existing scope of your business, assessing its customer base and order volumes in careful detail. While you will undoubtedly need to invest in expert logistics partners as your scale your venture, this may be better off included as part of a future growth plan rather than being done immediately.

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