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How Can Business Process Outsourcing Help The Logistic Companies During Their Tentative Times?

Posted by Kavita Deuri

Today’s economy for several logistic industry is hazy and gloomy. Unprecedented circumstances which will befall on these companies are unpredictable. Factors like economy crunch, decline in the confidence of the consumers, sky-high fuel cost, governmental rules and regulations, deteriorating revenues in the country, terrible earning resources and pressure in the flow of cash, and so on are majorly leaving an impact on the logistic industry’s crux. The only source of rescue lies in the hands of a trusted business process outsourcing company. The condition of various renowned logistic industry is at stake. During the first quarter of the year 2009, Hapag-Lloyd (a German container shipping line) faced a loss of $302 million. (Source: Journal of Commerce). Not only were this German company, even the United States were not exempted from the economy crunch. April 2009, the cargo traffic on US railroad were miserable, there was a massive fall upto 23% on the carload traffic and a decline of 17.9% in the intermodal car traffic as compared to April 2008 (Source: Association of American Railroads).  The state of the logistic industry is at bleak and these few examples can be taken into account for such major loss.

BPO firms at your service

BPO outsourcing or business process outsourcing companies perform their business function on a contract basis. The back office and the front office business management deals with inbound call center services and outbound call center services, management of the administrative department like the human resource, accounting and so on. In this highly competitive market business strive to stay balanced during the roller-coaster time. Organizations executing appropriate BPO services are indisputable champions of success and growth in the market place. It can help an organization during economic recession and at the time of forbidden cramps on the business strategies.

Read Also: Significance of Inbound Customer Support Services for Businesses

Benefits of BPO services for the logistic industry

Performance of an organization depends upon the challenging niche of the core business. Rapid cost reduction is a significant matter to partake in an efficient core business strategy. Significant participation are vital for a logistic industry to join forces with the leveraging BPO industry to gain substantial cost saving values and extraordinary standards of both back and front office processes. A brief illustration is summarized below for a precise generalization for cost saving strategy through BPO outsourcing for logistic companies. A logistic company attribute roughly 60% of the operating cost to the customer service. Approximately all the 60% of the operating cost is invested in document processing or phone-based customer contact services. However, outsourcing these processes to a trusted vendor providing BPO services can save upto 40-50% of the operating cost.

Read Also: The Importance of Efficient Workforce Management for BPOs

BPO services are not just limited to plan a cost-saving situation. It has a massive distribution of processes which is beyond one arena of services. The BPO industry is inclusive of moving costs, upholding customer’s attention and retaining cost reduction operations, increment in the revenue, merging delivery operations, getting high volume of shared services and delivering continuous enhancement. Logistic industry must strategically plan their business tactics with the assistance of BPO service provider in their corporate schemes to cast away the economic tsunami that grasp the power to arch the upright players in the market place.

What are the benefits a logistic company could achieve from a BPO model?

Reduction of cost, time and people

The document processing unit in a logistic industry rates upto 35-50 percent over-all cost of the industry. Vendors or organizations providing BPO outsourcing can significantly reduce the manpower, time and cost of the third-party business partner. This will also lead to an extensive BPO program to further shrinkage of operating cost.

Systematic business process

Shipping non-core business process overseas has a constructive entailment level of systematic and orderly business process which instead is difficult to achieve through cumulative labour efforts. Systematic working ability of numerous processes like the HR department, accounting, inbound call center services or the outbound call center services can be transformed for better outcomes with the help of technology and quality.

Substantiate delivery process

Vendors providing BPO services can instantly overwhelm the poor in-house delivery processes of an organization with their performance pool of strategic planning in delivering business processes at a considerably low cost. The availability of 24*7 adept employees BPO services have carved in stone their tactics and processes with which numerous logistic companies can assure for a long time hold on the market place with nearly 100% precision.


Affair with acknowledgeable BPO outsourcing service provider and implementing a transaction-based pricing module, various logistics companies can reduce transaction cost upto 30-50 percent.

A wide range of logistic companies are outsourcing their transactional processes offshore to a third-party service provider that has profound knowledge about the business procedure from years and years of experience. 

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