A freight forwarder based in Australia and known as SwiftLogix Private Limited implements over 900 transactions every month. It was a company renowned for using technology and personalized customer service. Still, it was encountering increasing operational costs and problems that were making it hard to deliver quality services as it grew. To overcome these challenges in logistics, SwiftLogix looked for affordable solutions that would increase both the speed and scalability of their operations.
High Payroll Costs: In one year, because the company had a large internal staff to perform work like the registration of jobs, tracking of shipments, and entry of customs invoices, SwiftLogix incurred almost $1.2 million in payroll. This increasing cost headcount was a problem for the company in achieving profit sustainability and effectively challenging lower-cost offers.
Operational Inefficiencies: SwiftLogix’s basic working methodology was characterized by enormous documentation. These included tasks such as processing customs invoices and tracking the shipments which were time-consuming and inconsequential to delays and mistakes. These inefficiencies pulled down the rate at which services could be delivered to the consumer and consequently brought in more costs.
Lack of Flexibility: Logistics requires flexibility, especially when managing fluctuations in shipment turnover. The Type B in-house staffing policy restricted the organization’s flexibility, including SwiftLogix’s workload allocation. Hiring more permanent staff during the busy season increased costs, however, using permanent employees during fewer orders was inefficient because it used capital on excess capacity.
Compliance and Accuracy Issues: These documents are crucial to the operations of logistics because any mistakes made inherit punishment through fines and delay of shipments to their clients. This way, when it worked with manual processes, the company, and especially SwiftLogix did not always manage to meet the requirements of new regulations, which impacted both the company’s image and performance.
To overcome these challenges, SwiftLogix collaborated with FOS Desk, A Logistics BPO service provider exclusively for logistics companies. FOS Desk offered specific recommendations for efficient working processes and cost-saving.
Comprehensive Operations Management: The FOS Desk also took on operational tasks such as work registration, shipment tracking, and customs invoice filing. As a result, the FOS Desk eliminated very time-consuming work while executing these operations and improved the accuracy of the operations.
Job Registration: The team at the FOS Desk managed the whole registration process, guaranteeing quick and accurate entry of important data into the system, resulting in greatly reduced setup deadlines.
Shipment Tracking: FOS Desk introduced real-time tracking capabilities, allowing SwiftLogix to provide timely updates to clients and partners, which improved operational coordination.
Customs Invoice Entry: A dedicated team of trained specialists ensured that all customs invoices were compliant and accurate, minimizing errors and reducing penalties.
Flexible Staffing Model: Instead of maintaining a costly full-time in-house team, SwiftLogix leveraged FOS Desk’s flexible staffing model. They were able to scale their workforce according to demand, tapping into a pool of trained temporary staff during peak periods and reducing headcount when business was slow.
24/7 Availability: FOS Desk provided around-the-clock services, allowing SwiftLogix to meet urgent deadlines, especially for customs filings outside of regular business hours. This flexibility ensured the timely processing of shipments.
Process Automation and Technology Integration: FOS Desk introduced advanced automation tools that simplified core processes such as customs filing and shipment tracking, reducing human errors and accelerating workflow efficiency.
Customs Filing Automation: Automation tools ensured that all customs documents complied with regulatory standards, reducing the risk of fines and improving change of direction times.
Real-Time Tracking: By automating shipment tracking, SwiftLogix gained real-time visibility into their operations, allowing them to update clients promptly and avoid shipment delays.
Cost Optimization: By outsourcing operational tasks and implementing automation, SwiftLogix significantly reduced its operational costs. The flexibility offered by the FOS Desk allowed the company to scale its workforce without the financial burden of permanent staffing.
Payroll Reduction: Before working with FOS Desk, SwiftLogix’s annual payroll costs were $1.2 million. After outsourcing key operations and streamlining processes, payroll expenses dropped to $450,000 annually. This resulted in $750,000 in savings, which amounted to a 62.5% reduction in payroll costs.
Cost per Full-Time Employee (FTE): Before the integration, the cost per full-time employee was $48,000, which included wages, benefits, and overhead expenses. After leveraging FOS Desk’s flexible staffing model, the cost per FTE decreased to $18,000, reflecting a 63% reduction in staffing expenses. These savings allowed SwiftLogix to reallocate resources to other business areas.
Total Operating Savings: By improving process efficiencies, automating manual tasks, and reducing payroll expenses, SwiftLogix achieved $1.05 million in annual operating savings. This allowed the company to reinvest in technological advancements and growth initiatives.
Improved Operational Efficiency: With automated job registration, shipment tracking, and customs filing, SwiftLogix’s processes became more simplified, reducing delays and errors. Real-time tracking and more efficient customs compliance resulted in faster service delivery and improved customer satisfaction.
Scalability: SwiftLogix successfully handled its growing transaction volume of 900+ monthly shipments without needing additional full-time staff. The flexible staffing model and process improvements provided a scalable solution that supported future growth.
With the help of FOS Desk, SwiftLogix saw a drastic $750,000 reduction in payroll costs, a 63% decrease in FTE costs, and over $1 million in annual operating savings. These results were achieved without sacrificing service quality, enabling SwiftLogix to enhance customer satisfaction and position itself for long-term growth and scalability.
FOS Desk offers a solution that can provide skilled temporary staff for specialized logistics projects, 24/7 customs filing staff, streamlined operations, faster delivery, and increased regional network through their creative solutions.
By choosing FOS Desk, you can save up to 60% in costs, giving you more resources to invest in growth opportunities.
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