How to Save Time and Reduce Costs With a One Stop Shop Logistics

23 janvier 2018 - 02:02

The past years have seen a definite change for companies to one stop shop logistics rather than handling the entire supply chain system for themselves. The organization believes that the shipper or the receiver firm will take responsibility or full liability in case of any losses of the product instead of the supplier. Although the idea looks great, one should not ignore the fact that it poses a lot of inherent dangers. The firms should, therefore, put different measures and practices aimed at ensuring they minimize the following risks associated with a one-stop store planner’s chain:

  • A chain controlled by a third party means that the owner of the good does not have a say on the one spot shop logistics at all until it reaches its destination. The third party makes their rules and arrangement with their partners based on their terms which do not necessarily involve you. While the contracted parties handle a range of logistics, they cannot control an entire process. They, therefore, outsource selected portions or the whole components to those that specialize in running a one stop shop logistics chain. The danger in such a move is that the packing of the goods may not regard the needs of the intended recipient. Additionally, the third party is not flexible in their good delivery as they follow strict contracts they have with the supplier; cannot change the route, time of delivery or transportation mode.
  • Any profit-making company’s goal is to minimize costs while maximizing the profits. Therefore, they tend to try to reduce the transportation costs by working with partners who offer a cheaper mode in delivering the product to their customers. The organization tasked with the duty of acquiring and giving logistics services ensure they differentiate their goods before selling. Those companies that with several parts of the supply chain runs them separately with each component making its profit. Therefore, if the company makes its operation one-stop shop tactics, then there is a risk of exploitation as you seek to enjoy such services. The danger is that you will be paying more so that the companies can take the risk and liability but what you do not realize they have a clause in their services stating that they are only agents. In case of a liability, they exempt themselves from any legal liability. Then, the question is, why should you pay more for such a service?
  • The logistics ensure that you have a reduced role in control over the storage and transportation of the product. Any changes that you might want to the product such as a change in routing, shipment, packaging or delivery come may result to an additional cost on your part which the firms offering the logistics services might inflate.

Summary

For one place shop logistics to work efficiently, there is a need for the client to be in control of the whole process and not the supplier tasked to deliver the goods. Such an initiative will ensure that the agency gets the agreed payment thus saving the organization additional and unnecessary costs.

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