Reducing Supply Chain Costs: Logistics Outsourcing, Tompkins Associates

Save Now & Later

Outsourcing has the potential to provide significant first-year results with a quick payback period.

In addition to the one-time financial benefit, year-over-year cost savings will be realized.

Successful outsourcing requires experience and proven methods, which are well worth the effort.

Outsourcing will:

Reduce costs in year 1 and ongoing
Provide best-in-breed systems
Reduce capital expense generally associated with logistics operations

Logistics Outsourcing Cost Reduction

The current economic crisis is the best motivation you need to reduce supply chain operating costs.

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

To learn more, please complete our Information Request form.

Solving the Cost Reduction Riddle

For a complete discussion on aggressive, intelligent supply chain cost reduction on all elements of Buy-Make-Move-Store-Sell of the supply chain, see this article by CEO James Tompkins.

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