DEBUNKING
Logistics outsourcing
MYTHS

Logistics is hard. We get it. Let's explore some common misperceptions people have when considering whether to outsource.

Select one:
Myth #4

I'll lose operational control

When you outsource an aspect of your operations, it's natural to expect you'll have less oversight of it. However, outsourcing can actually put you more in the driver's seat.

The time-consuming management of logistics no longer has to take focus away from your core strengths and competencies as you’re working to build your brand.

Instead, with GXO Direct, you can benefit from the deep expertise of the world's largest contract fulfillment provider—honed from decades of serving the world's most recognizable brands.

You'll get industry-leading service, as proven by our stellar track record in critical areas like on-time shipping, dock to stock, and returns management and processing.

Multiple fulfillment centers put inventory closer to your customers—resulting in greater service levels, lower transportation costs, more efficient inventory management, and higher customer satisfaction.

A best-in-class visibility platform gives you real-time insight into your inventory and operations across sites, so you can provide customers with the latest information, avoid stock outs, and improve forecasting.

You have the ability to scale up or scale back as you see fit. Too much or too little warehouse space, under- or over-utilized technical and human resources, and outdated strategy are all issues of the past when you work with a flexible partner who can adapt to your varying need.

And should questions ever arise, our practice of open communication means you'll be able to quickly get the answers you need.

Customer story

Tripling their warehouse operations for a leading e-commerce company

See how GXO Direct has helped BBQGuys, a leading outdoor ecommerce company, stay in control by meeting peak summer demand.

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Being an e-commerce company, it’s critical we have a trusted partner like GXO Direct.

Myth #30

Integration is difficult and requires lots of time and resources

In any implementation, systems integration can be a big challenge—be it time, resources, cost, interoperability, or something else. Many third-party logistics solutions lack state-of-the-art systems and support resources.

In contrast, GXO Direct has a best-in-class tech stack—which includes core functions like WMS, order management and billing—paired with a market-leading integration tool and visibility platform. All of this is underpinned by BlueYonder, a Gartner® Magic Quadrant™ Leader in the supply chain technology space.

Our solution's integration layer allows us to ingest a variety of interfaces and provide a proven way to be up and running quickly: Most companies have their integrations up and running in eight weeks, half the industry average.

One way we can achieve this is by taking the load off your IT team. We know they’re tied up with a multitude of other projects; we’ll ensure their bandwidth isn’t further stretched by providing dedicated time and expertise to your integration.

Plus, we offer published APIs that you can integrate to with no additional cost. Or, if you choose to leverage GXO Direct's integration team, we will complete the work for a flat fee. But even more important than our transparent pricing is the value we can drive for you.

Our established, extensive approach to pre-go-live testing ensures smooth sailing upon deployment—so your transition is seamless, and your customers will never experience a gap in service.

Customer story

GXO Direct was able to help them meet higher demand while providing fast and flawless fulfillment.

Discover how a luxury fashion retailer was able to quickly integrate with GXO Direct ahead of the holiday shopping season.

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GXO Direct was able to help them meet higher demand while providing fast and flawless fulfillment.

Myth #19

My existing real estate and investments will go to waste

You may have existing space, resources and personnel dedicated to warehousing and fulfilment. However, just because you have these assets, doesn’t mean you can’t outsource.

Partnering with a third-party logistics solution can unlock opportunities including the ease to scale, increased buying power, and, finally, making distribution a core competency.

Partnering with a third-party logistics solution can unlock opportunities including the ease to scale, increased buying power, and, finally, making distribution a core competency.

But what about your existing assets? Enter the takeover-in-place (TOIP)—a model that allows you to maximize value with very little risk. GXO will take responsibility for operating an existing warehouse on a labor-only basis, rebadging your workforce.

We’ll bring in GXO team members to identify operational efficiencies, infuse the GXO culture into your operation, and quickly get your workforce up to speed.

Skilled staff, proven processes

This is all possible due to the expertise gained from operating 200M+ square feet worldwide to help improve service and reduce costs.

In today's tight labor market, you can benefit from our labor deployment, recruitment, and retention capabilities. We have a significant presence in most logistics hubs and leverage regional labor-sharing and cross-training coupled with an employee engagement culture to sustain a highly flexible, skilled workforce.

And the takeover is only the starting point of the continuous improvement (CI) journey. Our lean management methodology, honed through decades of experience, streamlines warehouse processes and increases productivity and throughput. Our CI approach is collaborative, and you can participate to the extent you choose.

Moreover, you can be up and running quickly. For one customer, we executed a takeover-in-place (TOIP) within 72 hours of signing the contract. Within 30 days, we were meeting or exceeding all KPIs on the previously underperforming site.

Article

Takeover-in-place (TOIP): A strategic way to optimize your supply chain

Delve into the specifics of our TOIP approach, including process, technologies and additional benefits.

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Our lean management methodology streamlines warehouse processes and increases productivity and throughput.

Want to explore more?

See how millions get what they need, when they need it with GXO Direct Visit our logistics hub