Outsourcing Your Supply Chain is Good For Your Health
3 minute read
FreightWaves recently reported on a survey of 2,127 hospitals (about ⅓ of the total hospitals in the United States) that found a whopping $25.7 billion of overspending in their supply chains. While a quarter of the hospitals surveyed performed quite well in logistics, there was a huge gap between the high-performing supply chains and those at the lower end of the spectrum. Does this seem like a pretty large amount? And what does it mean for healthcare? According to the report, quality of care was not affected by supply chain inefficiencies, but that $25.7 billion leaves a lot of room for improvement.
Your organization isn’t a hospital, so why does this research matter to you?
It’s another example of how ineffective supply chain processes cost organizations money they might not even realize they are spending. And the truth is, hospitals are not the only organization plagued by logistics inefficiencies and over-spending. In fact, the ever-shifting logistics landscape is consistently leaving companies exposed to liabilities due to changes in regulations. And while advancements in technology are boosting performance and enhancing transparency, most companies are overwhelmed by the variety of Transportation Management Systems available and the taxing implementation process. Furthermore, like hospitals, many manufacturers do not have the requisite knowledge to hire highly trained logistics professionals and instead are relying on employees with limited transportation knowledge to manage their increasingly sophisticated supply chains. All of this adds up to extra costs.
Outsourced Supply Chain
What’s good for hospitals is good for manufacturers and distributors and that’s expert supply chain management.
When you outsource your logistics operations, you save money. You can allocate your limited resources to growing your business while relying on experienced logistics professionals to handle your supply chain headaches.
Think about Ted, he’s the guy who has recently been moved to your logistics department. He’s always been a great resource to your company because he is talented, smart, and trained to help grow your business. But right now, he’s mired in logistics. He’s worried about new government regulations, doesn’t know how to create a pricing model in order to create the best possible bids, and is overwhelmed by the necessity of a Transportation Management System (TMS) that will provide relevant data, transparency, and adaptability. Ted is a hard worker, but he doesn’t know what he’s doing.
What if you could move Ted to a position where his skills would better benefit your company, and you could outsource your supply chain management to folks who know what you need and will treat your customers like your own? Ted could get back to doing what he does best, and you’d all feel a lot better!
Are you worried that outsourcing will cost more money? We hear this a lot, and it’s not unfounded. But the fact is if you’re operating like the hospitals in the FreightWaves article, you don’t know how much you are overspending now because you don’t have the technology or the expertise to find out.
90% of Domestic Fortune 500 companies are outsourcing some or part of their supply chain functions to a 3PL. And they’re doing it because it’s cost-effective. Outsourcing isn’t just for the big guys.*
If you’re interested in outsourcing supply chain services, schedule a call with AM Transport Services today. We offer a variety of solutions to meet your unique needs. We’ve been in the logistics business for 30 years. Our team members are trained logistics professionals who will make sure you receive the service and technology you need.