Role of BPO Solutions in Transportation and Logistics Industry
Try imagining the following situations. Hostile clouds descending on Europe, thus disrupting flight schedules. Or it might be a Tsunami rippling across the Pacific and affecting port activities of a nation adversely. Not to forget the political emergencies and technological downfalls occurring now and then!
Well, the intention is not to frighten or scare you, but all these instances are what the present-day transportation and logistics professionals face while working. The transport and logistics sector today happens to be quite different from what it was even a few years back. Today, the functions of a logistics professional are not restricted to transporting goods from destination A to B. Rather a profound and in-depth comprehension of technologies as well as crisis emerge as prime requisites.
The need for outsourcing
With the changing market trends and demands, there have been significant transformations in the transportation and logistics business process outsourcing services domain. The job of skilled personnel and executives continue to be tougher, thus adding to their hardships. Perform an intense market research and you will identify some of the biggest challenges faced in transportation and logistics management.
Identifying the challenges
Current market trends have given birth to the need for increased efficiency. If you are amongst those highly experienced C-level executives, you must be well-equipped to address the following issues.
- Inter-modal transportation issues involving complex sequences with ships, planes as well as trucks. Seamless transportation and transitions will be the key to saving money and facilitating speedy delivery.
- Acquiring knowledge of international treaties, currencies, taxes, regulatory laws, terrorist hot spots, as well as government issues, happens to be another big challenge.
- International shipping and logistics often involve traveling through danger-prone areas. Therefore, security emerges as one of the greatest challenges.
- The availability of proper transportation or better to say transportation management is an integral segment of logistics. Additionally, it happens to be a decisive factor in supply chain management. Undoubtedly, transportation management happens to another critical factor.
- At times, logistics and transportation management also includes negotiations with other shippers operating in the market. Apart from that, it is also imperative to understand their pay scales and work cultures.
- Increased productivity: The process of transportation management heavily relies on your relationships with various professionals in the supply chain management. Outsourcing the shipping tasks to transportation bpo will let your logistics management team focus on core issues such as better procurement or building an effective relationship with suppliers, carriers, and vendors.
- Effective results: As birds of the same flock together, you will find the best-in-class professionals working with the leading transportation outsourcing solutions. Ingenious 3rd-party logistics providers will only deliver profitable results alongside mitigating issues such in freight claims and transportation accounting.
- Improved BI and data analytic: Choosing transportation back office outsourcing over in-house operations will lead to perfect data storage. Highly efficient logistics professionals will ensure perfect data storage, thus offering data analytic.
Outsourcing as a means of meeting these challenges
Meeting all such challenges together will prove to be a cumbersome task for any transportation and logistics firm. However, outsourcing these activities will take their bottom line forward. Since transportation and logistics management have direct effects on your firm?s profitability; it will be judicious to associate with transportation and logistics BPO solutions. Breeze through the following points and get knowledgeable about the benefits of doing so.
The concluding note
How about ending with a preview of the market statistics? According to reliable market reports, the 3rd-party logistics industry in the United States recorded a healthy growth of 4.5% in 2010 to 2013. If the market estimations are anything to go by, then this industry will grow by 6.4% in the following years.
Considering the importance of transportation and logistics management in a nation?s economy, logistics outsourcing will prove to be a smart move.