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.
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 direct and indirect costs associated with staffing and training.
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 manage the supply chain process’ multiple components effectively.
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.
If we’ve learned anything within the last two years, flexibility is essential. 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.
BPO offers organizations the leeway to focus on their core competencies instead of being bogged down in managing non-core (but critical) functions.
In his 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). Peters warned that failure could have dire consequences, 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.
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 while reducing operational costs.
Sound good? Contact us.