More and more companies are deciding to outsource their logistics to external firms. Implementing outsourcing can be one of the key business moves that determine a company’s growth. It is worth preceding such a decision with a professional analysis of existing logistics processes. Increasingly, companies are seeking the opinion of large, experienced operators who will select the best solutions tailored to the specific nature of a given company.
Before making a decision on how to conduct logistics operations within a company – whether to do it in-house or outsource it – an in-depth analysis should be carried out to assess which solution will be most beneficial at a given moment. It is crucial to determine whether the company’s resources (such as fleet, warehouse space, and personnel) and capabilities are able to meet the challenges resulting from projected growth. It is essential here to estimate whether and to what extent outsourcing logistics can help reduce fixed costs.
The benefits of transferring the transport and warehousing parts to an external company are obvious. A manufacturer or distributor does not have to worry about storing goods, does not have to think about whether the warehouse is empty or overcrowded. They do not worry about having the right number of employees to handle logistics at any given moment. They can focus solely on their core business – production.
Often, outsourcing logistics processes to a specialized company also brings tangible benefits in the form of cost reduction, which is what companies are mainly looking for. It must also be taken into account that the use of outsourcing will change the characteristics and share of individual costs that make up total logistics costs. A situation may arise where some costs are reduced, but others increase slightly. There will certainly also be necessary implementation costs, which is why a professional analysis is so important before introducing new solutions. The best solutions can be provided by experienced, global operators acting on many markets.
– Before implementing new technologies, we always conduct a return on investment (ROI) analysis and a return on equity (ROE) analysis so that the client has precise knowledge of how much a given application will cost at the beginning and after what period they will achieve a return on investment – says Grzegorz Lichocik, CEO of Dachser in Poland. – Sometimes the application of a specific logistics solution by an operator may increase certain costs, e.g., transport costs in the case of using one central warehouse in the country instead of several regional ones. At the same time, it causes a reduction in other expenses – maintaining several warehouses and a large staff. In the final analysis, the client always sees the benefits. If, according to our analyses, the venture has no chance of success, we inform the entrepreneur about it and do not undertake its implementation.
Companies that have decided to outsource their logistics operations particularly appreciate the feedback they receive from the operator.
– Our advantage over the competition is the use of a single IT system throughout the entire company, which is also extremely important for our clients – says Grzegorz Lichocik. – Many companies we cooperate with are international corporations or companies with a European reach. The situation where they have the same system in every country where they use Dachser’s services, and their shipments have the same single number across all of Europe, is very comfortable for clients and their recipients.
A unified system guarantees faster and more efficient operation in terms of both transport and overall logistics. It additionally provides the possibility of detailed and efficient reporting for clients.
– The Active Report proactive control system implemented at Dachser makes it possible to check the status of a shipment at any moment of its execution. Thanks to this, in the event of any irregularities, we can immediately inform the sender – assures Grzegorz Lichocik.
Warehouse employees and Dachser drivers are equipped with scanners connected to the IT system. If a shipment is damaged, they can take a photo immediately, and the client receives the information instantly along with photographic documentation.
The process of outsourcing logistics seems difficult for many business owners, and additionally time-consuming. That is why it is worth using the services of a logistics operator with extensive international experience in this area, as this guarantees professional consulting and innovative solutions.