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When You Should Insource or Outsource your Product Transportation

August 5, 2017 Air CargoBlogFast Fashion

Most manufacturing companies can benefit from outsourcing their product to transportation companies. Finding a reputable transportation company to move your goods can increase efficiency, save you money and hassle, and avoid costly mistakes. Still, before you contract a transportation company, be sure to do your research. A poorly run or overpriced transportation company can be detrimental to your business.

Whether you are a manufacturer or a distributer, transportation is not your core competency. Your management knows more about your products than it does about the ins and outs of the transportation business. Similarly, the people who apply to your company are probably more interested in what you make than how you transport it. But despite that, while many companies outsource departments such as customer service, IT, or fulfillment, fewer outsourc transportation. And yet, transportation is vital to manufacturers. Without it, there’s no way for your products to get to stores and distributors. Why leave it to anyone other than the experts?

Transportation companies may also be able to save you money. If you only handle a small amount of product, transporting it gets expensive. Transportation companies, because they move so much product, save money per pound. They can gain access to more forms of transportation, or cheaper fuel, or other discounts.

However, there are considerations to make, especially if you have a bigger company. For one, any issues that occur during the transportation process, including lost or damaged products, will be seen as your responsibility from the customer’s point of view. You want to ensure you’re working with a reputable transportation and logistics company which would benefit your business and minimize the chance of issues during transportation.

Also, if you have a truly big company, you may have the resources to exclusively ship through a transportation company. This can save you the hassle of having your own department, and have peace of mind knowing your products are in good hands.

In conclusion, transportation is a vital part of the business for any manufacturer. Consider your transportation needs carefully, and research transportation companies thoroughly. You may find that transporting your own product is the most effective way to do it. But, many businesses will realize that outsourcing is the most secure and effective way to transport their products.


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