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Companies of all sizes constantly seek ways to boost their daily operations amid fast-paced market competition. They risk wasting millions of dollars if they leave project delays and backlogs unaddressed.
Fortunately, business process outsourcing (BPO) offers cost-efficient solutions to streamline front- and back-office processes. Support vendors enable access to specialized expertise and advanced technology at competitive pricing.
Outsourcing in operations management involves various measures to help businesses achieve long-term, competitive advantages. This article discusses actions that providers take to support enterprises.
Seven Ways BPO Boosts Business Operations Management
Companies outsource to reduce operating costs, increase efficiency, and focus on their core competencies. These needs drive the global BPO market’s growth, letting the sector gain $261.9 billion in revenue in 2022.
But how exactly do BPO companies help improve your operations management? We tackle everything you must know in the following section.
1. Provide Cost-effective Human Resources (HR)
Service vendors provide cost-effective HR to meet your daily operational requirements faster. They employ many skilled professionals specializing in various domains, such as finance, customer support, and information technology (IT).
Outsourcing your operations management saves you up to 70% of labor costs. These savings are especially attainable when hiring a provider from offshore countries such as the Philippines. Because the country remains a developing nation, its minimum daily wage is $10.73. The figure is lower than the minimum wage of $7.25 per hour in the United States.
Service providers also help you save on training and office equipment. They handle all these needs as long as you pay the hourly or monthly fee in your service-level agreement (SLA).
2. Automate Data Entry and Collection
Artificial intelligence (AI) and robotic process automation (RPA) help BPO companies automate data entry and collection for your business. Besides improving efficiency, these technologies minimize errors, enhance data accuracy, and enable informed decision-making.
Suppose a shipment company contracted with a service provider to manage its accounts payable process. The client entrusts the BPO firm to handle many paper invoices from various sellers and convert them into digital formats.
The vendor uses optical character recognition (OCR) software and scanning equipment to automate related functions and collect critical details, such as the invoice number, vendor name, delivery date, and product amount. These systems automatically verify the data and enter it into an enterprise resource planning (ERP) platform for safe management and storage.
3. Streamline Supply Chain Management
When considering what BPO’s significant contribution is to streamlining your operations, boosting supply chain management is at the top of the list. Service providers mix human expertise with modern tech to accelerate and enhance the following business practices:
- Demand forecasting and planning
- Supplier management
- Order processing and fulfillment
- Warehousing and distribution
- Supply chain and data analytics
- Compliance and risk management
- Cost optimization
- Goods importation and exportation
4. Simplify Inventory Management
Outsourcing operations management involves simplifying your inventory processes. With the right skills and solutions, service providers can assist you in avoiding stockouts and ensuring product availability around the clock. Expect the following BPO advantages when entrusting your inventory oversight to a third-party team:
- Establish optimal inventory levels
- Prevent overstocking and understocking
- Expedite ordering and replenishment processes
- Accelerate product categorization and labeling
- Automate regular inventory cycle counting procedures
- Speed up the analytics and reporting of turnover rates, stock aging, and fill rates
5. Speed Up Logistics and Transportation
The benefits of operations management outsourcing include speeding up your logistics and transportation functions. BPO companies employ various strategies and solutions to reduce transit times and shipment costs. Here is how they do it:
- Use route planning and optimization software to identify cost-efficient transport routes.
- Screen and select carriers based on cost, capacity, and transit time.
- Implement real-time tracking and monitoring systems to keep tabs on shipments.
- Optimize warehouse work to reduce dwell times and congestion at distribution hubs.
- Consolidate shipments if necessary to reduce transportation costs and times.
- Oversee customs documentation and compliance with international trade regulations.
- Offer intermodal transportation options, such as combining trucking with sea freight.
- Monitor carrier performance automatically using AI-powered systems.
- Collect and analyze transportation data to identify trends and areas for improvement.
6. Enhance Quality Control
Outsourcing operations management enhances the quality control of your products and services. BPO firms employ dedicated quality assurance (QA) teams and technologies to perform these processes:
- Standardize and document operational processes.
- Support the development of standard operating procedures (SOPs).
- Identify quality metrics and performance indicators to measure operational effectiveness.
- Conduct regular QA audits of tasks and outputs.
- Assist in hosting quality training programs for in-house staff.
- Collect and analyze customer feedback regarding products and services.
- Execute root cause analysis to identify the origin of operational issues.
- Prepare reports containing QA recommendations.
- Oversee product and service compliance with industry and government regulations.
- Develop risk mitigation plans to prevent or quickly resolve operational disruptions.
7. Improve Customer Service
Improving customer satisfaction through call center BPO equals enhanced operations management. Note that happy consumers return as repeat buyers of your brand. This loyalty provides a stable revenue stream necessary to maintain efficient operations planning and resource allocation for your business.
But what are the other factors that can guarantee a solid customer base? Zendesk found that 61% of consumers would switch brands after just one bad experience. However, 91% of buyers stay loyal to companies offering their preferred customer service channel. The same study also found that 90% of buyers will return to companies that personalize customer service.
BPO providers offer support across multiple communication channels to meet customers’ demands. They use an omnichannel solution to integrate voice calls, emails, chats, and social media interactions into a single dashboard. This way, support agents can respond to inquiries quicker and more effectively.
Third-party providers also use customer relationship management (CRM) systems to meet personalization needs. They train their employees to address buyers by their names, understand their preferences, and provide immediate responses to their urgent problems.
Outsourcing in Operations Management: Key Technologies
Anticipate leveraging advanced technologies when outsourcing business functions to operations management providers. The applications of these platforms vary depending on your industry, requirements, and needed services. However, combining the listed systems lets your potential BPO partner provide cost efficiency and streamline your daily processes.
- ERP systems for real-time data exchange
- CRM tools for customer interaction and transaction management
- Supply chain management software for improved inventory management and visibility
- Warehouse management platforms for product picking and packing optimization
- Transportation management systems for route planning and shipment tracking
- Business process automation for improved accuracy and reduced manual labor
- Business intelligence tools for data analysis and report generation
- Internet of Things (IoT) devices for real-time logistics monitoring
- Cloud computing for flexible online data storage and access
- Blockchain technology for enhanced supply chain transparency and traceability
- Predictive maintenance systems for machine monitoring and sustainment
- Cybersecurity tools for sensitive data protection
The Bottom Line
Outsourcing operations management brings significant benefits to your business. You can access a workforce with specialized skills and cutting-edge technologies to streamline your daily processes.
Working with a BPO provider lets you speed up data, supply chain, and logistics management. Third-party resources also improve the quality of your products and services, increasing customer satisfaction and retention.
Let’s connect and negotiate a potential SLA if you need a reliable service provider. Unity Communications has the expertise and tech necessary to enhance your operations. Our proven capabilities complement your strengths to help you achieve continued business growth.
