.png)
Many businesses think that managing deliveries in-house means more control. But the truth is, when everything is handled by different people and departments, things get fragmented. A specialist with global oversight helps you organize the various needs into a coherent strategy.
Here's what Am-Tran president, Jim Hobbs, has to say on the topic:
"[Handling logistics in-house] does have a lot of control to it. But for better or worse, unless you're dedicated to this, you've got other things going on that pull your attention away. And so the question really becomes, 'If I outsource this to a person who focuses exclusively on this, can I do it in a way that gives me the same degree of control that I have right now?' "
Common Challenges with In-house Logistics
We've been in the business for over two decades now. In that time, we've learned a lot about how in-house operations work. We understand it works for some businesses. But for many others, it presents a number of challenges. And those challenges can get in the way of the core business. Here's what we've seen.
1. This isn't your specialization
Logistics is messy work. You need to pay close attention to every detail. For example, what vehicles do you need? What happens when a vehicle breaks down? How many couriers should you hire? Who's training those couriers? What happens when a courier goes on vacation?
"Without a sense of specialization, it's really difficult to get exactly what you want," says Jim. Again, it comes back to the question of, 'Can you get the same degree of control when you outsource some or all of it.' What I've noticed over two decades now is that by-and-large hospital systems, labs, and pharmacies have decided that outsourcing is the more efficient way to go. Then the trick becomes, 'how can we partner with somebody that can get you the control that you want.' "
Outsourcing to a company like Am-Tran that specializes in logistics means you'll get exactly what you want. And you'll have the same, if not greater control as a result.
2. Department-level logistics lead to gaps in training and procedures
We've also seen that when logistics are handled piecemeal by individual departments, there’s rarely a unified process. Each team might train staff differently or rely on informal knowledge, leading to inconsistent service.
Global oversight standardizes training, unifies information, and improves quality
3. Fragmented solutions lead to inefficient routing
When each department is developing its own solution, it’s common for multiple employees to cover the same territory or make overlapping trips. These inefficiencies waste time, mask inefficiency, and inflate costs.
Global oversight itemizes everyone’s needs and enables organizations to build efficient routes that reduce cost and increase accountability.
4. Lack of coherent reporting and analysis
When multiple vendors are used for deliveries, it is difficult and time consuming to evaluate performance. Different standards, different terminology, and different teams of people make it nearly impossible to really understand what’s going on.
Global oversight enables organizations to get uniform data and reliable answers.
Key Areas Where Outsourcing Provides Greater Control
Dynamic Route Management
One of the biggest advantages of outsourcing is the ability to quickly adjust stop sequences. Routes are often set, then left unchanged for long periods. But requirements change all the time. With external support, you can quickly figure out how new requirements can be incorporated into an existing routes or reorganize routes, if necessary, to maintain maximum efficiency.
With an external partner supplying data and clear options, you avoid the time-consuming analysis and can simply decide on the best path forward. "If you've got somebody on the outside providing you the data and the options available to you," says Jim, "You save all the time associated with figuring out what all those options are, and you simply are able to choose the direction that you want to go."
Organized, Accessible Data
Another overlooked area is data organization. Pickups, notes, and contact details must be tracked and updated consistently. Outsourcing ensures this information is stored and structured in a way that is easy to access at any time.
While managing it internally is possible, it often falls behind when logistics is not your core focus. A dedicated partner ensures everything stays organized so you can pull up what you need, when you need it. "If it isn't your sole focus, how diligent are you going to be in keeping everything really organized?" asks Jim.
Streamlined Coordination Across Departments and Facilities
In multi-department or multi-facility operations, logistics become fragmented. Each department often has its own contact person, focused on their immediate needs.
An outside partner can link these requirements together, finding opportunities to combine efforts and drive efficiency. They present optimized alternatives, allowing in-house teams to choose the best path forward without losing control. "The ability to link those requirements together and create efficiency by combining requirements is much easier to do when you've got an outside party organizing it and overseeing it," says Jim.
Balancing Cost and Control
Cost and control are often the top concerns for businesses considering outsourcing. A strong logistics partner can address both with transparency and flexibility, allowing you to make informed decisions without sacrificing efficiency.
Here's what Jim has to say about balancing cost and control:
"I think there are two things here. I mentioned earlier that, generally speaking, our cost structures are just lower than large laboratories or hospitals, and that's just a reality. Secondly, and perhaps more impactful, is we're really transparent about our costs. What we're trying to do is provide a service very efficiently that gives us a reasonable rate of return. And you know what that is. That should give you a sense of confidence that you have control over the financial aspects of the operation."
Pay for exactly what you want
Cost can fluctuate based on the degree of control you want over your operation. If, for example, real-time monitoring of temperature or dedicated fleet branding is important, you can choose to pay for those features. But not every level of control is necessary for every business. You can balance expense and oversight by selecting only the features and control you truly need, leaving operational complexity in the hands of a capable partner like Am-Tran.
"The costs associated with a dedicated vehicle as opposed to an Am-Tran flagged vehicle is an example of, 'it's a little bit more expensive but that may be what you want to do.' " And we have no issue with that. That's your decision."
Gain Confidence and Maintain Control
If you're still hesitant to outsource for fear of losing control and the impact that might have on end-users, we get it. We understand the gravity of the work at hand. Your patients or customers are on the line and only the highest standard of care is acceptable. Here's what we have to say:
First off, we don't make decisions on your behalf. All decisions are finalized after your complete buy-in. And if you don't like the decision, you can change your mind. You aren't losing any control of the decision process or logistics operation in that regard.
What you gain on the other hand, especially as a large organization, is consistency. Consistency at a high standard of quality. As your outsourced provider, we're making sure that drivers are all trained the same way; that if there's an incident, that incident is researched and reported the same way. "That sort of consistency provides you with a rock solid foundation that, again, stakeholders are always able to change," says Jim.
"It comes back to this idea that what we do is all we do. We understand the magnitude of what we're doing and that we're very capable of doing it. Once you have that degree of confidence, you can expect to have more control over your organization than if you were to try to do everything yourself."
The Bottom Line
Orchestrating logistics generally requires coordination amongst different departments. Many businesses keep it in-house, assuming that paying for outside help will reduce their control and cost more money. The reality is different. Dedicated services that can be tailored to your specifications, with the flexibility to scale up and down, can increase your control, reduce uncertainty and ultimately save valuable resources.
Outsourcing doesn’t mean giving up control. It means gaining a partner who’s fully focused on your logistics and invested in making them run better. With more visibility, more structure, and more support, you’re not losing control, you’re finally getting it:
- Expert eyes on every route – when requirements change you get the peace of mind knowing that there is a centralized operation overseeing global delivery needs. When questions arise there is a single point of contact that has the universal perspective. Logistics is all they do. They answer to you.
- Predictable cost management – A centralized operation means predictable budgeting and standardized reporting customized to your needs. The system can allocate costs accurately to the lowest desired level and can aggregate reporting to simplify analysis. This level of financial clarity gives you true control over your logistics budget.
- Consistent, reliable service – With a single point of contact you get reliable service and dedicated resources. Whether it is specialized vehicles, training, scheduling, what have you, services are tailored to meet your specific requirements.
- No more headaches – Managing your own operation comes with a long list of hidden burdens that sap energy and diminish productivity. Vehicle maintenance, HR issues, compliance, etc. can all be taken off your plate in a manner that maintains your standards of quality.
"We help people implement what they feel is really, really important based on information that we are able to provide to them," says Jim. "You get to control levers as opposed to worrying about all of the underlying details. In my mind, that gives you a broader perspective on what's going on and enables you to focus on the most important aspects of it."
.svg){kind=logo}
