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Problems with outsourcing in logistics
Let's say you've built a merchandise business. You invested, lived for it, grew, but at some point, logistics began to take up too many resources. In search of a solution, you came up with the idea of outsourcing. Let someone else take care of this part of the work.
It's a great idea, but be careful — you are essentially handing over some of the responsibility for your business to a partner. Now your income and reputation depend on them. In this article on the LLC «SyncraNova» website, we will look at the problems you need to be prepared for when outsourcing logistics.
Decline in service quality
Customers are not interested in who delivers their order. But they remember how it arrived: whether it was fast, intact, and how it was packaged. And if your logistics partner does a sloppy job, it hurts your reputation, not theirs.
Difficult scaling
When you depend on an external contractor, you have to adapt to their capabilities. You want more and faster, but they don't have the resources. You want to implement a non-standard route or new packaging, but they say it's ‘not included in the SLA (service level agreement)’. As a result, you are held back not because you lack ideas or resources, but because your logistics partner lives by its own rules. This becomes especially critical when the market demands flexibility and speed, and you are bound by someone else's regulations and problems.
Conflict of interest
An outsourced logistics company has one goal: to make money on volume. You have another: to provide service to your customer. Sooner or later, these goals may diverge. Some cut costs by using cheap couriers, others save on packaging or warehousing, and then you have to deal with negative reviews. And you can't just say, ‘It's not our fault, it's the delivery service.’ The customer won't bother to figure out who is right and who is wrong. They will simply leave.
It's a great idea, but be careful — you are essentially handing over some of the responsibility for your business to a partner. Now your income and reputation depend on them. In this article on the LLC «SyncraNova» website, we will look at the problems you need to be prepared for when outsourcing logistics.
Decline in service quality
Customers are not interested in who delivers their order. But they remember how it arrived: whether it was fast, intact, and how it was packaged. And if your logistics partner does a sloppy job, it hurts your reputation, not theirs.
Difficult scaling
When you depend on an external contractor, you have to adapt to their capabilities. You want more and faster, but they don't have the resources. You want to implement a non-standard route or new packaging, but they say it's ‘not included in the SLA (service level agreement)’. As a result, you are held back not because you lack ideas or resources, but because your logistics partner lives by its own rules. This becomes especially critical when the market demands flexibility and speed, and you are bound by someone else's regulations and problems.
Conflict of interest
An outsourced logistics company has one goal: to make money on volume. You have another: to provide service to your customer. Sooner or later, these goals may diverge. Some cut costs by using cheap couriers, others save on packaging or warehousing, and then you have to deal with negative reviews. And you can't just say, ‘It's not our fault, it's the delivery service.’ The customer won't bother to figure out who is right and who is wrong. They will simply leave.
Reputational risks
Everything related to delivery is perceived as part of the company. It is the last point of contact with the customer – and the most emotionally charged. Imagine: a person has been waiting for a parcel and suddenly... the courier is rude, late or loses the parcel altogether. You don't even know how it happened, but in the customer's eyes, you let them down.
Everything related to delivery is perceived as part of the company. It is the last point of contact with the customer – and the most emotionally charged. Imagine: a person has been waiting for a parcel and suddenly... the courier is rude, late or loses the parcel altogether. You don't even know how it happened, but in the customer's eyes, you let them down.
When it's time to take back control of logistics
If you notice that service levels have deteriorated and complaints have increased. If you realise that you are unable to implement the solutions you need or scale at the desired pace. If you feel that you lack the necessary data, transparency and control. These are all signs that it's time to take back control of logistics.
Yes, it's difficult. Yes, it's expensive. But this is what control over your business is all about. When logistics is yours, you set the standards, you select the people, you punish mistakes and praise successes. You don't depend on someone else's infrastructure — you build your own. You control the speed, quality and customer experience. It's hard at first, but very profitable in the long run.
What to do right now: advice from LLC «SyncraNova» experts
Evaluate your current logistics based on the following criteria: speed, quality, flexibility, control and feedback. Talk to your customers. Compare how much outsourcing costs and how much you could spend on your own logistics for the same volumes. Develop a transition plan: first, a partial return of logistics, then full absorption. Don't put it off until it's too late.
If you notice that service levels have deteriorated and complaints have increased. If you realise that you are unable to implement the solutions you need or scale at the desired pace. If you feel that you lack the necessary data, transparency and control. These are all signs that it's time to take back control of logistics.
Yes, it's difficult. Yes, it's expensive. But this is what control over your business is all about. When logistics is yours, you set the standards, you select the people, you punish mistakes and praise successes. You don't depend on someone else's infrastructure — you build your own. You control the speed, quality and customer experience. It's hard at first, but very profitable in the long run.
What to do right now: advice from LLC «SyncraNova» experts
Evaluate your current logistics based on the following criteria: speed, quality, flexibility, control and feedback. Talk to your customers. Compare how much outsourcing costs and how much you could spend on your own logistics for the same volumes. Develop a transition plan: first, a partial return of logistics, then full absorption. Don't put it off until it's too late.