Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Is it cost efficient to have your own Logistics company to do your distribution than to outsource from external firms?

user-image
Question added by ngonidzashe kasiyandima , Distribution Representative , British American Tobacco
Date Posted: 2016/05/31

Outsourcing can help a business focus on its core components without distractions from ancillary and support functions.

MULUH MARCEL MBUH
by MULUH MARCEL MBUH , Field Service Engineer , HUAWEI TECHNOLOGIE

First it depends on the environment some will favour outsourcing why others building your own  , but in the long run better to build and follow up 

Mohamed Zohir Beldi
by Mohamed Zohir Beldi , N-3 , ArcelorMittalALGERIE

I think the solution is to outsource the transport business becaufe the load is not continuous and the company can not provide operating budjet while the activity is down

Mohamed Azmal Shareef
by Mohamed Azmal Shareef , Cargo Operations Agent , Sharjah Aviation Services LLC

More than cost effecient,it is better to keep focus on mainataining the comapny's business at its highest level,By providing quality service to its customers.if outsourced we will not have control over its operations and service. 

bassant fraige
by bassant fraige , Procurement Coordinator , Amgad Language Schools

Outsourcing distribution clearly has significant potential for many companies seeking to re-ignite growth in a global economy still struggling to find its footing. Doing so not only allows them to focus on their most differentiated capabilities, but also gives them access to world-class, lower-cost distribution capabilities on a flexible and scalable basis. 

Mansour.H.M Toukan
by Mansour.H.M Toukan , Operation Manager , Al Ghanim Elictronics

We should see first what is the company objectives and the needs because adding so incentives on the product is very easy

Tomasz L
by Tomasz L , Reporting Specialist , Outworking

I agree with Jefferson, there is always a choice 'make' or 'buy'.You must also consider the time needed to build your own logistics company and elasticity in selecting/changing outsourcer. Here appears additional question: Cost effectiveness is your the most important goal or just one of your goals?

Starting with outsourcing and need to build own network for distribution 

Jefferson Jamilla
by Jefferson Jamilla , Customer Service Representative , Offsourcing Philippines Inc.

It's a very complex question but I think, building your own Logistics company requires you more money  or capital in putting it up. You also have to consider the operating cost of the business, but if the Profit exceeds the expenses in the latter, then it would still be a good decision.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.