Outsourcing Cost Reduction

Improve performance and reduce supply chain costs through outsourcing, or by assessing your existing outsourced provider base for consolidation opportunities. Companies must find ways to achieve results even when capital budgets are limited. Outsourcing can be an effective strategy for cost reduction, especially when staff reductions create a lack of skills to achieve the necessary objectives for short and long term success.

But outsourcing is not a 'one size fits all.'

First, it is important to determine the why, what, when, where and who of outsourcing. This includes identifying cost savings targets and even service level improvements.

Outsourcing may be the right solution for reducing the costs of logistics. For functions that are already outsourced, it is important to audit service provider performance and to develop and implement continuous improvement initiatives.

While there are many functions to consider for outsourcing, transportation and distribution are the two key processes that offer the most potential for operating expense reduction.

The Process We Use

Using the knowledge of your supply chain needs, we help you achieve cost reductions for logistics functions including transportation expense, labor, IT systems and support, elimination or reduction of assets such as distribution centers, trucks and related equipment, administrative expenses, supplies and inventory.

Our Outsourcing Cost Reduction (OCR) service yields quick and significant return-on-investment. We develop practical solutions, and we find the hidden costs often buried in status quo supply chain practices. You can realize savings of 5-30%, which begin in as few as three months.

Regardless of whether you choose an integrated or independent approach for logistics outsourcing, our proven OCR process will ensure you receive the expected benefits on time and on budget.

Learn More

Visit the outsourcing page for more resources.

Solving the Cost Reduction Riddle

For a complete overview on aggressive, intelligent supply chain cost reduction on all of the Buy-Make-Move-Store-Sell-Return elements of the supply chain, read the article "The Riddle of Supply Chain Cost Reduction" by CEO James Tompkins.

There are significant cost improvements that can be accomplished with little to no capital investment and with minimal resources. For detailed information, see what top performing companies are doing in areas such as transportation, inventory and outsourcing.

Bottom Line Impact Now:

Five Key Opportunities to Reduce Distribution Costs

Three Key Opportunities to Reduce Transportation Costs

Food and Grocery Industry Cost Reduction

Cost reduction in supply chain technology for the food industry in this article from Food Logistics magazine.

White Paper on the Retail Industry:

Download the white paper: "Sourcing and Selling in Challenging Economic Times: How Retailers Should Re-think Their Operations and Methods."

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