The Death of the Corporate Logistics Manager. . . . Would You Ever Outsource Your Own Job If It Was Good for the Company?

I attended a talk by Mr. Jomar Hilario, Filipino Internet Marketer.  One of the ideas that struck me was his use of Virtual Assistants in the Philippines to do his internet marketing.  He claims there is no Employer-Employee Relationship (hence, no need to pay employee benefits such as social security and medical insurance) and in fact, he has not met in person some of his virtual assistants. It is cheaper to use his Virtual Assistants though he claims also to pay them about the going-rate for wages as engagement is for a minimum of 30-days.

Do I lay-off myself? (courtesy of The Office)

So, I was thinking, if I was a Logistics manager running a 300-man  warehouse facility, would I dare to recommend to my bosses to outsource me as it will be cheaper for the company?  Would I be committed to the mental asylum for thinking that way?

If I get Outsourced, can I apply with DHL?  (courtesy of DHL)

I had a talk with my friend who works with DHL Supply Chain and I asked him how can it be cheaper for a company to outsource a warehouse facility to DHL considering that he will have to pay the same wage rates a company would pay plus DHL's profit markup?

He said while at the outset there may not be savings but in the long run DHL can prove that thru Operational Efficiency, the client-company will realize savings over the long term.

If that were true, then is it the death of the corporate logistics manager?

By the way, I would like to invite you to visit my Sulit Homepage as there are some business opportunities that you guys might be able to help me out with.  If you are interested, just click the Sulit Logo below:

A Different Kind of Car Rental: Outsourcing of Company Cars

I remembered bumping into a guy who was in the Car Rental business except that his is not like Avis or Hertz.

He visits companies and offers to handle their fleet of corporate cars.  By doing so, the client-company is free from a number of Logistic problems:

Headaches of Maintaining a fleet of cars (courtesy of ocregister.com)

1.  Outsourcing Transportation Management of the company's fleet of cars, which is not part of their core business, frees-up Management talent and resources;

2.  Reduced Head count as no need to maintain a pool of mechanics, a custodian for a small car parts stockroom and drivers;

courtesy of planetforward.ca

No need of a Company-run  Motorpool (courtesy of panamacz.com)

3. Preventive Maintenance and repairs are now handled by the outsourcing Car Rental company;

4.  Depreciation is no longer a worry as well as setting-up a Fund to handle the cost to replace the vehicles after 3 or 5years;

5.  In the event of a car breakdown or car accident rendering the company car inoperative, there will be no loss of Management time & expense (when the manager has to commute while his car is in the shop)  as the Car Rental company will provide a Service unit till the car is repaired;

6.  No need to stock up on Tires, batteries and other consummables used by cars;


7.  Of course, the rental costs can be significant but it can be deducted from company revenues in the income statement.



By the way, I would like to invite you to visit my Sulit Homepage as there are some business opportunities that you guys might be able to help me out with.  If you are interested, just click the Sulit Logo below: