How long does it take to outsource logistics?
The answer depends on the situation.
Let me illustrate this with two contrasting case studies—one taking a very long time and the other a very short time.
Watch the video below!
Understanding the Process
When discussing logistics outsourcing, warehousing, and transport—particularly national outsourcing contracts—several steps are involved. Initially, you need to document what you’re outsourcing. This takes some time. Next, you decide which suppliers to invite to tender unless it’s an open tender, which is rare these days. You then brief them and send out all the necessary documentation, allowing sufficient time for suppliers to prepare their bids. A common mistake in logistics outsourcing is not allowing enough time for this. Suppliers need time to absorb the data, develop their solutions, calculate resources, and estimate costs.
Following this, you evaluate all the submissions, select the best ones, inform the chosen suppliers, negotiate contracts, and finally, implement the contract. So, how long does all this take?
Time Frame: Long & Short
Let’s start with a lengthy example. A while back, we worked with a government organization aiming to be well-prepared for market engagement. We started 18 months in advance. Extensive internal work, documentation, and defining services to be outsourced were completed six months before issuing the tender. Suppliers were given two months to prepare their solutions, and with a complex operation, evaluation, and contract implementation, the entire logistics outsourcing process took 18 months. This is quite unusual and longer than typical timeframes.
Now, let’s look at the other extreme. A few years ago, a company approached us with a pressing issue. Their relationship with a 3PL provider was deteriorating, and the provider demanded they vacate the warehouse in six weeks. This urgent situation required us to act fast. Fortunately, the company had some preparatory work done, saving us some initial time.
We quickly identified potential 3PL providers, briefed them, and gave them two weeks to respond. Despite the compressed timeframe, we managed to shortlist, evaluate, and transition their warehouse operations just in time. Effective logistics outsourcing in this scenario was challenging but achievable.
From these examples, it’s clear that the time required for logistics outsourcing can vary significantly. Generally, a reasonable timeframe for such a process ranges from a few months to a year, depending on the complexity and preparedness of the organization.
Need Help?
If you need any help with your outsourcing and if you wanna have a chat and bounce some ideas around, I’m happy to help.
You can book your free support here: Outsourcing Consultants
Watch the full video above for detailed information of this topic!
Related articles on this topic have appeared throughout our website, check them out:
- Struggling with Logistics Challenges? A 3PL Might be Your Salvation
- Insourcing or Outsourcing Logistics: Don’t Choose the Wrong Reasons
- The Power of Outsourcing for Supply Chain Improvement
- 6 Quick Tips for Successful Logistics Outsourcing
- 10 Common Pitfalls to Avoid in Logistics Outsourcing
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated June 10 2024, under the title “3PL Logistics: How Quickly Can You Outsource Logistics?“
