How Dallas Shipping Companies Redefine Global Logistics with Back-Office Outsourcing

Shipping companies in Dallas see the benefits of subcontracting back-office functions to business process outsourcing (BPO) organizations to boost efficiency and competitiveness. 

Delegating non-core tasks, such as customer support, to a BPO provider in Dallas, Texas is an effective strategy. It allows companies to streamline their operations and experience a laser-sharp focus on their main logistics activities.

This blog post explains why Dallas shipping companies should consider back-office outsourcing solutions in the face of business challenges. It also discusses the various third-party services available and how these offerings help reinvent the operations of the Dallas shipping industry. 

Why Dallas Shipping Companies Need Back-Office Outsourcing 

The City of Dallas Economic Development Corporation (COD EDC) reports that Dallas has seen a decade of sizeable infrastructure spending. This investment enhances the flow of goods, upgrades utilities, and provides developers with ready-to-build sites for prospects. Over 10 million square feet of new construction serves distribution, freight, and manufacturing tenants.

The COD EDC report also highlights the following:

• The Dallas-Fort Worth (DFW) area contains three primary railway systems (Union Pacific, Burlington Northern Santa Fe, and Kansas City Southern), allowing trains to reach 98% of the U.S. market within two days.
• The International Inland Port of Dallas is renowned for providing direct access to the three main interstate highways (I-35, I-20, and I-45), with all key North American markets reachable by truck within 48 hours. 
• The DFW International Airport, the ninth-biggest cargo airport in the U.S., has a remarkable potential to double operations, requiring only 3.5 hours to fly to all significant U.S. markets.

Additionally, several freight shipment options are accessible from Dallas, including air, truck, and train. The city offers an extensive network of freight carriers, making it convenient to select the best shipping firm for any business. UPS, FedEx, XPO, DHL Supply Chain, J.B. Hunt Transport, and Fastenal are among the many shipping and transportation businesses in the city.

Business Challenges Dallas Shipping Companies Encounter

Dallas shipping companies should adopt a back-office outsourcing strategy to help address the specific issues they face. Among them: 

• Fluctuating demand. Dallas shipping companies confront frequent demand fluctuations. Outsourcing offers the flexibility to match peak periods, preventing underutilization or overuse of in-house resources.
• Cost-related pressures. Costs associated with labor, fuel, maintenance, and compliance frequently have an impact on the industry. Companies can find cost-effective outsourcing solutions, particularly in labor-intensive warehousing.
• Last-mile delivery issues. Urban last-mile delivery can be complex and costly. Accessing specialized providers optimizes routes, improves service, and reduces costs.
• Regulatory compliance. The industry faces many regulations. Working with third-party compliance experts helps companies navigate complex rules, reducing the risk of fines and penalties.
• Global trade complexity. Dallas shipping companies must deal with the intricacies of cross-border operations. Delegating customs brokerage and trade compliance can streamline these processes.
• Technological adoption. Staying current with logistics technologies can be challenging for Dallas shipping companies. Outsourcing to specialists provides access to advanced systems, enhancing tracking and efficiency.
• Scalable operations. Meeting rising demand and achieving market expansion can be cost-prohibitive. Subcontracting provides companies with the scalability to grow or downsize as needed.
• High-quality customer service. First-rate customer assistance is essential. Acquiring customer support outsourcing services enhances response times and consumer satisfaction through efficient order management.
• Effective risk management. Outsourcing mitigates risks through expert risk management and continuity planning. Risks can come from supply chain disruptions, cybersecurity threats, and natural disasters.
• Environmental concerns. Addressing sustainability goals and ecological problems is increasingly essential. Collaborating with BPO providers using eco-friendly practices can help shipping companies reduce their carbon footprint.
• Core competencies. Transferring non-core functions, including warehousing or order fulfillment, allows shipping companies to concentrate on their strategic initiatives.
• Market-driven expansion. When Dallas shipping companies expand into new markets, outsourcing can offer expertise and knowledge of the local scene. It helps reduce the learning curve and facilitates a smoother market entry.

Back-Office Tasks for Dallas Shipping Companies to Outsource

 BPO providers offer strategic outsourcing services to assist Dallas shipping companies in managing business challenges. Handing over duties to third-party vendors can help streamline processes at a lower cost, resulting in increased efficiency.

The following are some outsourcing services for Dallas shipping companies:

• Customer service. Outsourcing customer care operations such as order tracking, status updates, and returns and warranty processing can enhance customer satisfaction. Hiring third-party support centers that effectively reply to requests at any time adds to a pleasant customer relationship.
• Human resources (HR) and workforce solutions. Outsourcing HR activities, including recruitment, training, payroll processing, performance evaluations, and employee wellness programs, can aid shipping businesses in better managing their staff.
• Marketing and search engine optimization (SEO) services. This strategy can boost brand awareness, internet traffic, and search rankings. Dallas shipping companies that outsource these tasks can remain competitive in the digital world and efficiently sell their services to a larger market.  
• Information technology (IT) and cybersecurity services. These delegated services contribute to the maintenance and reinforcement of the Dallas shipping industry’s IT systems and data security. Since the 2023 ransomware assault in Dallas that revealed the personal information of 30,253 people, these functions have become necessary. 
• Administrative duties. These tasks include data input, document management, inventory monitoring, and appointment scheduling. Shipping companies can improve organizational efficiency and production by transferring these duties so that they can pay more attention to primary operations.
• Compliance and regulatory services. Handling complex industry norms and standards can be intimidating. Dallas shipping companies can assure adherence to relevant laws, maintain operational compliance, and efficiently manage risks when outsourcing these functions.
• Technology and software solutions. BPO companies provide technology and software outsourcing services and programs such as transportation management systems (TMS), route optimization, tracking platforms, and e-commerce platform building and maintenance. 

The Perks Dallas Shipping Companies Enjoy When Outsourcing 

Freight carriers, cargo providers, couriers, trucking firms, and other shipping companies in Dallas can subcontract their non-core tasks to BPO providers with global reach. But what is BPO’s primary impact on the Dallas shipping industry? 

Service providers use skilled third-party remote workers and advanced technology to assist with various delegated tasks, such as IT outsourcing, through offshoring (e.g., the Philippines) and nearshoring (e.g., Mexico) models.

When Dallas shipping companies partner with BPO providers to oversee their outsourcing activities, they can drive their efficiency, productivity, and revenue through the following advantages:

Productive Virtual Workers for Greater Efficiency

Increased efficiency is the primary reason for hiring third-party specialists from BPO firms. In work-from-home (WFH) or hybrid work arrangements, the service provider assigns jobs to distant virtual workers with flexible schedules.

WFH staff can focus more on their duties because they eliminate time-consuming pre-work activities and travel from their day-to-day, resulting in faster, more efficient service.

The following elements improve remote work effectiveness:

• Well-supplied remote workforce. The BPO provider furnishes virtual teams with essential devices, hardware, and software for effective task delivery. 
• Systematic remote work. BPO providers enforce balanced WFH policies to maintain staff collaboration, productivity, and efficiency.
• Regular virtual meetings. The third-party team meets regularly to keep track of work progress and assignment status.
• Consistent communication software usage. Remote workers use software to harmonize and streamline collaborative interactions and communication.
• High information security. Remote workers use virtual private networks (VPNs) and antivirus software to protect critical company, customer, and client data from unauthorized access.

Curtailed Operating Expenses for Enhanced Cost Management

When Dallas shipping companies partner with BPO firms for outsourcing initiatives, they raise their cost efficiency by reducing ongoing expenditures.

Review how outsourcing can mitigate expected costs for Dallas shipping organizations:

• Hiring. Outsourcing means the provider manages every facet of recruitment, from promoting job openings to onboarding new personnel, resulting in time and cost savings.
• Online and physical investments. Assembling an in-house team requires the purchase of new equipment, extra office space, and ongoing maintenance and improvements, all raising the overall costs.
• Skill advancement. The BPO provider manages the cost of upskilling and development, which would pose a financial challenge for Dallas shipping firms if managed internally.
• Wages and extra perks. Regardless of the shipping firm’s financial situation, permanent team members receive pre-determined pay, additional compensation for extra hours worked, tax withholdings, and mandatory state advantages and incentives.

Agile Practices for Enhanced Efficiency and Trimmed Expenses

Partnering with BPO providers enables scalability for Dallas shipping firms, decreasing expenditures and improving operational efficiency. Service providers handling delegated tasks, such as technical support outsourcing, can adjust outsourced personnel and administrative tasks without disrupting regular activities.

Explore the following perks of scalable practices:

• Cost savings. Scalability enables shipping enterprises to adjust resources to achieve operational cost-effectiveness, especially during periods of low demand when there is a reduced need for a full-time workforce.
• Market advantage. Success for Dallas shipping companies depends on how fast they can respond to market fluctuations and fulfill the changing needs of clients. The more agile they are, the more competitive their positioning is.
• Service. By optimizing resources, scalability gives shipping companies the means to improve service quality, resulting in a more effective distribution of personnel and assets. 
• Versatility. Scalable operations enable shipping firms to quickly modify resources to address evolving client requirements, workloads, and projects.

Various Communications Platforms for Seamless Service

Dallas shipping companies can access comprehensive communication solutions with back-office outsourcing. For seamless engagement, the provider integrates audio, video, and text on a single platform, enabling effortless channel switching.

The following are the most common forms of communication:

• Standard phones are basic fixed-line telephones for making and receiving calls. 
• Email allows private messaging with attachments for customers and third-party teams.
• Voice over Internet Protocol (VoIP) telephony connects users via broadband internet, offering improved call quality, albeit at a higher cost than standard phones.
• Short message service (SMS) enables sending short text messages to remote workers or customers for quick inquiries and responses.
• Social media lets users share ideas, feedback, and suggestions. 
• Chatbots permit customers to use text or voice commands to ask common questions and interact with advanced software.
• Live chat allows clients to interact with live agents by submitting inquiries through a web page panel and receiving immediate responses.

Budget-friendly, Committed Virtual Team for Improved Financing

Outsourcing saves money for the Dallas shipping sector. When logistics companies hire a third-party vendor to handle operations, they can optimize their budget by engaging a team of cost-effective, credible, and knowledgeable WFH professionals. 

Contrast the typical monthly earnings of customer service representatives (CSRs), bookkeepers, and IT managers in the Philippines, Mexico, and Dallas to showcase cost advantages.

Note: The data for the Philippines and Mexico were obtained from Salary Explorer, whereas the numbers for Dallas, Texas (U.S.) were sourced from Indeed. Salary Explorer statistics were adjusted from Philippine and Mexican currencies to U.S. dollars to simplify comparison.

According to the statistics, employing a CSR from a BPO provider in the Philippines saves a Dallas shipping firm around $4,190.40 monthly ($4,479 less $288.60). Remember that these are merely projections. Inquire with a BPO provider about the specific charges. 

Augmented Regulatory Compliance To Prevent Substantial Sanctions

Dallas shipping companies that leverage outsourcing can work with a third-party vendor that more strictly conforms to regulatory and industry standards. It knows violations might lead to penalties, litigation, and reputational loss.

The service provider monitors various regulations, such as: 

• The Department of Transportation (DOT) rules cover various transportation aspects, including vehicle safety, driver qualifications, and cargo securement.
• The Federal Motor Carrier Safety Policies were established by the Federal Motor Carrier Safety Administration (FMCSA). They govern commercial motor vehicle operations, including driver safety, vehicle maintenance, and proper recordkeeping.
• The Texas Data Privacy and Security Act (TDPSA) is state legislation enforcing data security and privacy in the Lone Star State by defining protection and breach notification stipulations.
• The Payment Card Industry Data Security Standard (PCI DSS) is a series of security standards that protect credit card information and ensure safe payment procedures.

Ample Supply of Talented Workers for Long-lasting Operations 

The Dallas-Fort Worth-Arlington region possesses extensive talent. However, labor shortages persist, resulting from continual business expansion. Finding and retaining qualified workers remains an issue. This problem is somewhat eased when choosing to outsource to the Philippines or Mexico.

Consider the following table on the labor force participation rate (LFPR) between the Philipines, Mexico, and Dallas-Fort Worth-Arlington, Texas (U.S.).

Note: The U.S. Bureau of Labor furnished data for Dallas-Fort Worth-Arlington, Texas, employment, whereas the LFPR for the region was sourced from the North Central Texas Council of Governments. 

These figures indicate that many Filipinos and Mexicans are actively looking for employment. Thus, Dallas shipping companies can ensure long-term cost savings with offshore or nearshore outsourcing, as the Philippines and Mexico provide a consistent talent pool and affordable labor market wages. Insufficient labor drives up pay rates and service fees, amplifying expenses.

The Bottom Line

Dallas shipping companies find outsourcing an effective solution for addressing different challenges and operational requirements. By partnering with BPO providers, they can optimize logistics, enhance efficiency, and mitigate risks. 

Outsourcing offers cost-effective options. It also allows companies to focus on their core competencies, adapt to market changes, and expand their services. Whether customer service or technology integration, outsourcing is a valuable tool for Dallas shipping organizations to thrive in a dynamic and competitive industry. 

Let’s connect if you want to learn more about how Dallas shipping companies benefit from back-office outsourcing!