The problems with single-source logistics
Contracting with a single logistics carrier may appear to simplify operations and result in preferential rates from the service provider.
However, these perceived benefits are superficial at best and at worst, result in significant overpayment for services and poor performance metrics.
This guide uses real data to show how a multiple carrier logistics strategy can help you to:
- Save 20-30% on direct logistics costs
- Significantly improve performance metrics
- Reduce risk in your supply chain
To produce the data in this paper, we created a dummy logistics operation and used the 7bridges L.E.O.™ technology to model what happens when using one, two or more providers to ship goods around the network. We compared 12 major logistics providers, and the rates are real, but we’ve disguised the names in the graphics that follow (see appendix for more information).