4 Reasons to Outsource Data Collection

In today’s complex supply chain, having access to accurate data can make all the difference. Whether you operate a warehouse, distribution center, trucking company, or have a small e-Commerce business, maintaining accurate data points from sales, payroll, import/exports, and shipping records is a critical part of the day-to-day operations. But, with technology changing every day, and your daily operational tasks increasing, outsourcing data collection – specifically, the metrics used to service your customer is becoming increasingly popular.

In the information below, we’ll outline a few of the top reasons why outsourcing your data collection to an experienced third-party logistics professional is not only economically advantageous but can help your business navigate the evolving changes in the supply chain.

What is Outsourcing Data Collection to a 3PL?

In years past, the trend of bringing everything in-house was considered a proactive and smart way of controlling expenses. However, with the introduction of cloud-based platforms, blockchain software, and a growing need to improve white glove service to the end consumer, many businesses struggled to keep up with all the new bells and whistles that their competitors utilized. This inspired many businesses who operate within the supply chain to reach out to 3PL’s or third-party logistics companies to have them manage and establish data collection programs that are robust, scalable, and help save them time, money, and resources.

Outsourcing technology to a 3PL is a proven method of saving shippers time, money, and manpower that can be allocated to growth areas of their business. In fact, this is how 3PL’s entered the industry. A small group of technology-based companies began to offer online tracking systems and data collection programs specifically tailored to the transportation industry. As their service offering became poplar, they expanded to serve shippers, warehousing, and retailers.

Today, experienced 3PL’s work with any organization or company that has a need to move supplies, merchandise or commodities via air, sea, or land. If your company has any hand in the supply chain, there are four specific benefits to outsourcing your data collection and logistics management to a 3PL company:

Improved Customer Service

The supply chain is a highly competitive industry. In fact, nearly 30 percent of all jobs in the United States involves the movement of freight.

Regardless of your business model, quick, reliable, and affordable shipping of the products is the name of the game. Take Amazon.com for example. What started off as an online wholesaler of books has grown into the largest retailer on the planet for one, simple reason – they’re exceptional at fulfillment. While nearly everything is in-house these days, in their early years, Jeff Bezos worked with several 3PL’s to help build that empire.   

An experienced 3PL is going to arm your supply chain data collection with technology and software solutions that focus on improving the customer experience. Setting up delivery notifications via SMS text, email, or even desktop alerts, reporting on delivery times, exceptions, and recording that data for you to review in an easy-to-access dashboard helps you fine-tune the business – regardless of the industry – to serve your customers better than the competition.

Improves Efficiency

The buzz-term most commonly spoken during stockholder meetings is ‘improved efficiency’. It’s a magic ingredient to increased business, profitability, and service. A single lapse in supply chain efficiency can devastate a business – and arguably, the leading source of these small lapses is simply inexperience. By outsourcing the tracking, data reporting, and freight billing process to an experienced 3PL, you can reduce many of those small mistakes that can make a huge impact on your business.

Personalized for Your Business

The best 3PL’s on the planet understand one simple truth – your business is unique. Even if two businesses operate in the same space, their operations, policies, and people are all different. The experienced 3PL realizes this and will customize your data collection and logistics software solutions to fit your business. Some of the personalized solutions include:

• Freight invoice auditing
• Carrier & Vendor management
• Expedited Shipping
• Freight claims
• Customized Reporting
• …and so much more

Consolidating Data

When you operate or manage a supply chain-related business, you’ve got enough on your plate. Successful managers understand that the key to management efficiency is being able to consolidate information that fits them best. This is another personalized solution offered through experienced third-party logistics companies.

Our team can set up reporting functions in a simple, at-a-glance format, or robust and detailed reporting platform. Whatever works for you – we’ve got the tools and experience to build it to your needs. Cloud-based technology permits you access this data on the fly, from any device and any location with an internet connection.

Whether it’s running your digital marketing campaign, PR, or supply chain functions, outsourcing in today’s competitive marketplace simply makes sense. Relying on the experience of industry partners is usually a good way to set your business up for success. More importantly, it frees you up to focus on growth. When you outsource to a 3PL, it ensures you always have access to valuable partnerships for your business’ personalized needs.