To Increase Agility, Expand Outsourcing to Business Processes, Ryder System Says

To take logistics outsourcing to the next level, companies should consider using a third-party partner to define and evaluate business processes as well as traditional logistics functions, according to a new white paper from Ryder System Inc., Miami.

Receiving and shipping processes, for example, often are not proprietary within a company's facilities, according to the paper, Outsourcing to Improve Supply Chain Agility. "Insourcing personnel from a third-party to execute these processes relieves labor costs. And, as competition for talent increases, it often provides a more skilled and stable labor force as the third-party provider can offer more career path benefits in recruiting personnel."

Engaging a third-party to perform selected business processes can provide improvements and increases to the operating budget, the paper says. "By challenging internal process assumptions, you can rapidly identify processes that can be more effectively outsourced or insourced, assets that can be retired, sold, or leased and technology that can be more rapidly implemented by leveraging a third party's expertise and experience."

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