In a disruptive environment, how can the logistics sector ensure a flexible yet robust and stable service to their clients?
A key phrase for our 2021 world must surely be “disruptive environment”, for obvious pandemic related reasons, but also for the way that the logistics sector is undergoing huge changes in line with increasingly complex demands from their clients, who in turn are facing entirely new challenges. It is vital that the logistics industry operations are perfectly aligned with those of their clients in a world that is concurrently unpredictable and fickle, whilst decisively marching forward into the digital economy.
Indeed, a pivotal role of the logistics and transport sector is also in supporting their clients who are tackling those e-commerce and digital economy issues, whilst at the same time expanding into new markets and ensuring the supply of goods across borders with speed, security, agility and adaptability.
The pandemic’s unexpected immense pressure on the logistics network has highlighted in the harshest way how companies need to be resilient and highly flexible. In fact, the traditional development of medium and long-term strategies has proven effectively defunct.
So that begs the question, where to go from here? Solutions need to be flexible and robust/stable, applicable across several countries yet sufficiently diverse in each to respect the national culture and norms, make sense economically, and bring additional positives into the company value chain. It’s a really big ask.
Outsourcing is a fully viable option that meets many of the requirements; a sector that is growing in both developed and developing markets. Indeed, it is estimated that Business Process Outsourcing (BPO) will reach $350 – 400 billion by 2025. These figures reasonably demonstrate that organisations appreciate outsourcing’s added value.
However, outsourcing doesn’t necessarily come without risks; externalisation potentially results in less internal integration, decreased stability and safety for workers and consequently lower quality in services and performance. So what are the options to ensure that this doesn’t occur?
Logistics companies need to both reflect and analyse their internal frameworks to ensure that they commit with absolutely the right partner and their available workforce to meet their individual demands. Thus, it goes without saying, that your outsourcing partner should be selected with due diligence.
In working with an advanced outsourcing specialised partner like Gi BPO, expert counselling is made available to companies, to assist in optimising both staff coverage and processes. But not only; Gi BPO will also add support by constantly improving procedures, efficiency and workflows too.
In drawing on global best-practice expertise, Gi BPO’s business diagnosis focuses on efficiency and productivity data analysis (expected KPIs) alongside an assessment of the client’s team, plus existing and new processes (core and non-core). This in turn gives insight that pinpoints true needs and best solutions to further improve the effective value chain.
Thus, Gi BPO clients are brought onboard an “Implant Operating Model”, with 3 primary areas of focus:
- Pay per result. An outsourcing contract is normally based on a fixed income. But Gi BPO has introduced a remuneration model based on results, tied into professional daily productivity controls which measure ROI for every single investment.
- Long-term partnership. Traditional outsourcing is characterised by short-term agreements. This means that the company becomes unable to adopt long term strategies or make long term investments. A long term contract on the other hand implies a 360° perspective, and the possibility of tailor-made solutions.
- Fair goals. Gi BPOs contracts are market-specific, transparent and detailed. Our cross-market law, regulation and union relations expertise enable us to define KPIs that circumvent potential litigation issues.
Thus, once Gi BPO has defined a company’s upgraded “holistic” framework, it is possible to leverage data-driven insights to ramp up output and profits (for example, cutting production costs, transforming fixed costs into variable ones, simplifying management and staffing and much, much more).
What are the other benefits of this approach? Firstly we can consider the people perspective; not only improved client care with a fully integrated bi-directional dialogue with the client but also “people power” whereby employees are actively engaged in promoting diversity and professional growth as well as in solving work-life balance issues, all of which enable empowerment, ensuring better output and qualitative standards. Secondly, a company’s resources savings aspect; waste optimisation (detecting and troubleshooting those activities which detract from the value chain) and focusing the entire team on efficiency practices.
Gi BPO outsourcing agreements are notable for their duration and solidity. The underlying long term relationship with our clients, based on mutual trust and transparency, is built up over time whilst we flank them, day by day across a variety of operations.
We are of course a highly compliant and ethical company, and take good care of our team, whilst our team members world to achieve our clients’ targets. Respect for the rules and regulations in the place of work is a guarantee for the sustainable development of our staff. The professional growth and consequent personal affirmation of our team are self-evidently of fundamental importance to Gi BPO. Finding a good balance between working hours and home life, and appreciating diversity, are the fundamentals in creating a happy and successful team, able to grant the quality of work our clients require.
Outsourcing contracts are based on financial and legal transparency for all involved, and we aim to optimise and implement new processes in addition to continually improving our clients’ procedures and existing workflows.
We entirely adapt our approach and operations according to the cultural background of the location in question. We always operate in compliance with the national laws and regulation of that location, and we award huge importance to industrial relationships, communicating constantly with unions and the like, respecting and necessarily applying second level agreements in place in our contracts. This systematic approach allows us to transfer our methodology across national boundaries with relative ease.
A first step towards initiating a partnership with Gi BPO is an in-depth diagnosis of in-plant logistics, focusing on efficiency and productivity data analysis (including expected KPIs) together with an assessment of the internal workforce and processes (core and non-core business).
As the outsourcing partner of choice for logistics companies around the world, Gi BPO can help those companies keeping world trade connected be at the very top of their game.