In our drive for efficiency, we sometimes take wrong turns along the way.  Outsourcing is still on the rise, but some of the most profitable companies keep all but the most occasional functions in-house.

Too often the driving force behind a decision to outsource is an unspoken one; shifting the burden.  But there is no free lunch.  The work must be done, and a price will be paid to do it.  Hiring a staff of professionals can pay off in terms of greater control of the process.  When two different companies are working on a single project, conflicting goals can clash.

Outsourcing a function make the most sense for a rare occurrence that requires considerable investment in assets or personnel.  However, a shipper of more than one truckload per week that turns over traffic functions to an outside company is unnecessarily giving a stranger the keys to the office.  The core competency of any manufacturer includes delivery the product to the customer.

If the best supply chains are proprietary, the next best thing consists of long-term relationships with as few parties involved as possible.  Pursuing lower rates by "chasing the dollar" ends up being penny-wise and pound-foolish.  When a vendor can count on loyalty from a shipper, each load takes the significance of the entire account.  Very often, a good vendor is more valuable than a marginal customer.

Maintaining a corporate traffic staff is not the easiest way to handle your freight, but it may be the best.  Choose your partners and your processes as if your job depends upon it.

Have a great summer!

DRS                        danny@clarkfreight.com

"He who would leap high must take a long run."   Danish Proverb