Overhead is Slowing You Down

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Overhead slows you down, but it would be unrealistic for a logistics provider to claim that they would always be better than a company’s private fleet, mainly because there are too many variables to claim that absolutely. However, there are certain types of companies that should definitely not own a fleet of couriers, and here are three of them:

THE RAPIDLY-GROWING COMPANY

Overhead doesn’t move fast. That is the reality for companies that are growing and need to rapidly expand into new markets to meet new demands. A large regional courier can handle even the most rapid expansions because they already have the network coverage you need. Too many companies are making a big sale in a new market, and then running around trying to rent warehouse space and hire drivers in 30 days to make it work. Focus on what you do best, and let a 3PL help you with what they do best.

THE VOLATILE COMPANY

A company that experiences dramatic shifts in volume and customers can’t sustain a stable internal fleet. The nightmare scenario would be drivers with only four or five totes in their vans each day, warehouses that are at 25% capacity, and employees who are being paid but have nothing to do. Its a liability and a culture-killer.

THE FOCUSED COMPANY

A large regional bank is trying to figure out how to grow their customer base and offer a better service. Should they be focused on innovating their logistics model too? Chances are that focusing too many resources on a better internal logistics process just takes you away from the core of what you do and what makes your business model great. Most 3PL’s are constantly innovating to cut costs and better serve their customers, so let them take care of that aspect of the business.