Why outsourced logistics should be logistics-led

Written By Reagan Nyandoro



Allowing logistics professionals to lead the procurement of outsourced logistics services is the best way to create supply chain value through collaboration, according to a whitepaper from the University of Tennessee.

The university’s Haslam College of Business Supply Chain Management Faculty published the paper in October, under the title ‘End-to-End Supply Chain Collaboration Best Practices: Creating Supply Chain Value by Working Together’.

In it, they compare the outcomes when outsourced logistics procurement is led by internal logistics staff, versus when it is made as a purely corporate procurement decision.

They write that in a growing number of companies, “corporate procurement is taking over responsibility” when it comes to procuring outsourced logistics services.

“Clearly, logistics operations must be an integral part of that process,” they add, “but sadly that’s not always the case.”

But they add: “One best practice is to have a dedicated procurement function within the logistics function. This preserves the use of good procurement practices while also keeping the business closely involved in the process.”

In examples of where this is the case, they cite double-digit improvements in expenditure on freight, through a combination of renegotiating existing contracts and also selecting multiple new carriers.

They conclude: “In more and more companies, procurement is working with logistics to co-develop a leading sourcing strategy.”

Outsourced logistics to rely on

3T Group use collaboration to ensure that all of your logistics operations are optimised, whether you work with a single carrier or many across a complicated supply chain.

Our transport management platforms identify where improvements can be made, allowing you to renegotiate or find new carriers as appropriate to meet your changing needs.

To find out more about how 3T Group can optimise your carrier network as your needs develop over time, call us on 0116 2824 111.

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