Can BPO be the answer to the Logistics Industry’s uncertainties?

The logistics industry is facing a tumultuous and gloomy economic climate in the recent times. There is often a persisting fear of panic among its workers and owners. This pessimism can be attributed to a host of factors such as cash crunch, fluctuating fuel costs, declining revenues and an increase in government regulations and a few more.

The BPO industry with its business outsourcing companies represents a much needed tactical lifeline for the logistic enterprises to stay afloat in these periods of economic uncertainty. It can be the best possible option for these storm-struck companies to rapidly reduce costs and help them weather the economic dip. The logistics companies can take the advantage of significant cost savings by leveraging BPO.  The following are a few pointers on how to get the best out of the consolidation of the logistics and the BPO companies.

Mark BPO as a high-level priority

The decision and order for outsourcing should come from the C-level designations or at least from the top management personals. Without this, the idea of outsourcing is not taken very seriously by the management and left as an optional choice. The CEO should be visible behind the wheel while supervising such a critical initiative. There is no room for consensus, it is an important decision and no half measures are going to work.


The first and foremost objective of hiring business outsourcing companies is cost reduction without compromising quality. Here, simplicity means being realistic about the aspirations of the company as well as the management during times of economic slowdown. Focus only on achieving the objectives that matter the most and leave the rest. Try bootstrapping.

Be fast and quick

Once the decision to outsource the internal processes is finalized, companies should quickly set up outsourcing programs with aggressive timelines. By imposing deadlines on the implementation of the roadmaps, the logistics companies can mobilize effectively with the newly set dynamics.

Set the savings in advance

While preparing the current year budget, put in the expected savings that the business is going make well in advance. This will ensure that the managers will have no other way but to seriously commit to the BPO program so as to get the cost out fast.

Ensure business alignment

Select a BPO partner who understands the logistics business and will align itself with the way the parent company works rather than imposing its own. Business outsourcing companies should have adequate industry knowledge so as to align themselves with the ever-changing needs of a volatile and variable economic situation. If the service provider is not very adept in processing freight bills, lading bills, and driver logs and is alien to the underlying regulations of freight, duty, and taxes then it is going to create problems in achieving timely resolution of issues.

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