BPO Providers Help Freight Brokers, 3PLs
Ride Economic Highs and Lows

The logistics industry is always at the forefront of any economic movement, whether up or down.

In our post-pandemic world, the “new normal” has compelled more trucking firms, 3PLs, and freight brokers to retain Business Process Outsourcing (BPO) providers for the most effective and efficient operational solutions.

Here’s why:

Cost Savings

Outsourcing business processes allows companies to save on payroll and training costs. These savings have been particularly critical during the last two years of labor shortages and The Great Resignation. Organizations are now replacing employees at a significantly higher pay rate than before. They’re also losing productivity while training the new recruits.

Companies that have beefed up their staff to meet production will end up laying off those same employees during the next economic downturn. Such layoffs and hiring freezes are already occurring in some large corporations.

Retaining a BPO partner reduces both direct and indirect costs associated with staffing and training.

Improved Efficiency

BPO firms are business process experts that utilize the most current technologies, resulting in extreme efficiencies. They possess the resources, manpower, and equipment to streamline operations.

The transportation industry is complex, encompassing multiple channels, various delivery and timing options (e.g., 2-day, overnight, etc.), and a range of quality and service levels. Logistics companies must routinely handle vast amounts of information to effectively manage the multiple components of the supply chain process.

Keep On Truckin’

According to the American Trucking Association, the trucking industry moves more than 72% of the nation’s freight tonnage. Here are some more trucking statistics:

  • Over the next decade, truckers will be tasked with moving 2.4 billion more tons of freight than they do today.
  • 10.23 billion tons of freight (primary shipments only) were transported by trucks in 2020.
  • The number of U.S. trucking carriers on file with the Federal Motor Carrier Safety Administration totaled 996,894 in 2021.
  • In 2020, 3.36 million Americans were employed as truck drivers and 7.65 million Americans were employed in jobs related to trucking.

Source: American Trucking Association

BPO providers help by assuming responsibility for companies’ various data-related processes, organizational matters, and back office operations. Whether it be data management, invoice and freight bill processing, or logistics accounting, a skilled BPO partner can ensure proper and accurate completion of these vital tasks.

Today’s logistics companies are all about optimization; BPO helps further those efforts.

Increased Flexibility

If we’ve learned anything within the last two years, it’s the importance of flexibility. Organizations that work with BPO providers can respond more quickly to shifting consumer demands (particularly within the e-commerce environment).

Few things improve company flexibility more than a secure cash flow. BPO providers who offer accounts receivable services can quickly translate receivables into cash.

By utilizing automated credit management tools, document retrieval, and e-billing technologies, these BPO firms enable businesses to reduce or re-purpose existing staff, resulting in a greater return on investment.

Additionally, a skilled and reliable BPO firm would be available for support 24/7, so logistics companies can quickly identify and mitigate any operational snafus.

Experienced BPO providers possess capabilities that would require costly investment for individual organizations. Outsourcing business processes can benefit logistics operations in both good times and bad, when business is booming and when things are tight.

Competitive Advantage

BPO offers organizations the leeway to focus on their core competencies instead of getting bogged down in managing non-core (but nonetheless critical) functions.

In his 1982 classic book, In Search of Excellence, business guru Tom Peters first popularized this notion of focusing on core competencies. Specifically, Peters advised businesses to “stick to the knitting” (e.g., concentrate on what the company knows best). Failure to do so could have dire consequences, Peters warned, as companies risk getting sideswiped by the competition.

Retaining a BPO provider allows your company to become an expert at what it does best. It offers you a competitive advantage that will be reflected in both your top and bottom line. The more time your staff devotes to honing core competencies, the more competitive your business will be.

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BPO / Outsource

When Should You Retain a BPO Provider?

How do you know if it’s time to outsource your business processes? Here are a few signs to look for:

  • Your management team is overwhelmed with attempting to handle back-office operations while fulfilling their primary responsibilities.
  • Your labor costs are increasing steadily.
  • Demand for your product is up, but there’s a backlog in fulfillment and accounts receivable.
  • Customer complaints are climbing.

If you recognize any of these signs, it’s time to consider retaining a BPO partner to manage your business processes.

At Synter Resource Group, we only serve the transportation industry. We’ll partner with you to improve efficiency, increase flexibility, and create a competitive advantage – all while reducing operational costs.

Sound good? Contact us.

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