It’s easy for supply chain professionals to view staffing and scaling as a binary, black-and-white decision: Either you do it in-house, or you hire a third-party logistics provider to handle it. But reality calls for a more nuanced approach.

That’s what 500 shippers told us in our recent research study on supply chain outsourcing. The study found significant diversity in how companies approach supply chain management. For example, among 21 specified functions, there wasn’t a single one where a majority of shippers thought fully in-house was the ideal approach — the highest was only 36%. However, if there was one theme that held true across company size and industry, it’s that companies with both in-house expertise and a strong 3PL base have the best chance of succeeding.

In a volatile and unpredictable industry, shippers that make long-term, strategic investments (instead of an emphasizing short-term budget cuts) tend to remain more stable. The most successful think about supply chain as a competitive advantage, not a cost center. 

If there was any doubt that this is the case, it was removed after the massive disruptions arising from the COVID-19 pandemic. They caused company leadership to start paying renewed attention to their supply chain strategies. 

Whether it’s adding providers or growing internal capabilities, there’s never been a better time to invest in supply chain capabilities, and use the pain of the last few years as a catalyst for improvement. According to our research, 81% of supply chain professionals say their company leadership is investing in building out their supply chain capabilities. For some, that means staying in-house: 47% of shippers plan to grow their internal supply chain team’s headcount this year, compared to only 8% who are downsizing.

Why is that the case? Because some things are just too integral to a company’s success to outsource. Asked why they keep key supply chain functions in-house, shippers’ most frequent response was “the area is too important to corporate strategy to outsource.” 

Indeed, it’s vital to build up at least some level of in-house expertise. Even a company planning to outsource a supply chain function can’t afford to be totally uninformed when it acts to onboard and manage a vendor — or, for that matter, select the right 3PL for its needs in the first place.

With many companies bolstering their in-house headcount this year, why should shippers outsource? Because supply chain operations are too complex to handle alone.

There’s no way a company can acquire all the resources needed across every function to run the entire operation effectively in-house. When used correctly, 3PLs give access to more capacity, flexibility and expertise, often at a lower cost than could be done in-house.   

Our research revealed that companies of all sizes, across all industries, rely on outsourced providers. For most, this investment is increasing. A majority of shippers (52%) are planning to increase their spending with 3PLs this year, compared to only 10% who are planning on reductions. 

Even though a 3PL’s staff doesn’t consist of your direct employees, the right provider can still function as an extension of your team. Many will create a dedicated account team exclusively focused on your business, and might even offer to have embedded staff onsite, working alongside the internal team.

So what’s the best approach to supply chain staffing? According to more than 500 shippers, there’s no perfect answer. But if one thing is clear, it’s that a mix reigns supreme. 

Looking at the average across those 21 areas of supply chain management, many more shippers think a blend is ideal (63%), versus an all-or-nothing approach with either fully outsourced (12%) or fully in-house (22%).

To achieve the right mix that supports your supply chain operations and business goals, assess your current state, plot out your capabilities versus your needs, and match your priorities against your budget. This should help you create complete organizational alignment across departments, and find the best path forward for your company. 

Ben Steffes is vice president of CTM and managed services with Coyote Logistics.