3 Benefits Of Outsourcing Food Product Shipping Services

by Michael Kotendzhi | Food & Drink
 3 Benefits Of Outsourcing Food Product Shipping Services

The trucking industry has become vital to the North American economy, with Mexico, Canada, and the United States relying upon 18 wheeler trucks to transport a variety of products. Ultimately, this has made trade between the nations easier in many ways. The trucking industry itself also provides a variety of different jobs, and in Canada alone, it is worth over $65 billion and employs over 260,000 drivers and 400,000 employees.‚Äč

However, the companies shipping these products do have to abide by certain laws and restrictions, especially when it comes to shipping foodstuffs. This only becomes more complex when you consider the logistics of trucking. While some companies like to handle their container delivery logistics on their own, this can sometimes end up costing more time and money than expected.

Fortunately, there are third-party trucking companies that can handle logistics for their clients. Still, some businesses remain skeptical about using third parties or outsourcing in general, preferring to handle all steps in-house. When dealing with container delivery services, there are many advantages and benefits to working with third-party transportation companies. With that being said, let’s look into some of them — and why it can be much easier for a company to handle shipping processes through outsourced container delivery services.

1. Cutting Costs

Shipping products across the country, particularly food products, is not cheap. Most foods need to be kept in carefully moderated conditions and need to meet certain legal standards. Furthermore, if a company employs its own truck drivers and support technicians, these employees will need to be kept on the payroll at a constant level. This can greatly expand the number of people employed on an individual basis and can, therefore, lead to much higher rates of expenditure.

When dealing with a third-party company, businesses can rely on them to employ the drivers and support technicians. They will own the trucks and will be responsible for all necessary maintenance. Furthermore, it’s often easier to budget when working with third-party companies, as the costs will be set ahead of time. If the business itself is handling shipping costs, unknown variables can cause costs to rise over time.

2. Convenience

The more people are consistently employed by a company, the more opportunity the company will have to expend. Furthermore, a company that that handles its shipping processes in-house will also have to ensure that it has enough vehicles on-hand and must independently maintain those vehicles. Third-party container delivery services can handle this for their clients. This means that the client can focus on the product that they are shipping and not exactly how it will be shipped. For that matter, if the client is shipping products internationally, the third-party transportation company will also be able to handle the legal issues and logistics surrounding international shipping.

3. Legal Safety

Jumping off from that point — food grade logistics can be complicated and it’s easy for mistakes to be made when shipping is handled in-house. Third-party carriers specialize in these services and can be considered the experts in the field. Therefore, it’s much less likely that you’ll run into an issue with your product becoming spoiled or being shipped incorrectly. Therefore, your company will be protected — and if something does go wrong, you can likely trace it back to the third-party company, which will act as a barrier between your business and the issue. It’s easy to understand why business owners — especially those who are still growing their businesses — might be hesitant to work with third-party transportation companies. It’s difficult to let go of full control in that way. However, the benefits of working with a third-party logistics company when shipping products cannot be overstated. Consider it before attempting to handle shipping in-house — you’ll be glad that you did.

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.