“Test Drive” to Find the Right Outsourcing Partner
Outsourcing or Managed Services has been in vogue for years in the world of business. In the burgeoning Logistics industry, business process documentation outsourcing has become essential because of intense global and local competition, and profitability challenges. Several Logistics companies - Freight Forwarders, Logistics Service Providers and Shipping Lines - have elected to outsource some or all back-office functions to trusted third party service providers, mostly offshore.
However, several small and medium Logistics companies who have never experienced the benefits of an outsourced operation such as cost savings, higher margins, better quality and improved turnaround time might be hesitant to outsource, fearing it will mean sacrificing quality, giving up control and compromising their data security. Such perceptions about outsourcing could hamper informed decision making and delay business growth.
Further, as many Logistics companies have realized, finding, hiring and training new staff in a timely fashion to do routine tasks can be both demanding and costly. First-hand experience of an outsourcing operation can not only lay these fears to rest but also help them realize the benefits.
So how can a Logistics company comfortably transition to an outsourced operation?
“Test Drive” – A Managed Service Experience
Getting first-hand experience of outsourcing can give Logistics companies the necessary comfort and knowledge that will enable them to make the right decision. It is worth the time and effort to connect with a Managed Services provider who can support you ‘test drive’ an outsourced model.
Cenza – a leading Managed Services provider has developed a “Test Drive” program for Logistics companies to run pilot projects designed to allay their fears and give important insights before embarking on a full-fledged outsourcing initiative. A “Test Drive” for business process outsourcing may come in the form of “risk-free” business process services for a defined period of time—demonstrating the quality, accuracy and turnaround time of the work delivered. This “test” will provide Logistics companies with the insights needed for making an informed decision on outsourcing a larger project to the service provider.
In addition to gaining experience about the outsourcing operation itself, a “Test Drive” also familiarizes Logistic companies with the service provider’s capabilities:
- Process and workflow: Is the provider organized & efficient and can they work within the company’s procedures?
- Communication preferences: How easy and convenient is it to share information with the provider?
- Data Security – Do the service providers’ systems and procedures provide enough data security and privacy features in line with standard and applicable protocols?
- Strategic direction: Can the provider and their solutions help meet financial and business goals?
Most Managed Services engagements are by nature long term. Therefore, it is important to understand the nuances of outsourcing and managing an outsourced operation. Due diligence provides the opportunity to discuss capabilities and operating models, while a “Test Drive” can help further validate specific work scenarios that will ultimately help make better business decisions.
About the Authors:
Hari Santhanam brings over 25 years of experience in IT, AI/ NLP, Education, Retail, Strategy Consulting and BPO. His pet functional areas are Global Business Strategy, Tech Solutioning, Go-to-Markets, Marketing, and Scaling.
Deepak Amirtha Raj is a Research & Strategy Analyst at Cenza. He focuses on Business Strategy Research, Emerging Technologies and Advanced Analytics. He studied business at Saint Joseph’s College and had previously worked with Royal Bank of Scotland as Business Process Analyst.