Logistics e-commerce outsourcing

When should I outsource? What should I take into account? How do I choose a good logistics operator?

We will try to solve the main doubts that arise when we are faced with this decision, as there are many specialised management companies that see how many of their e-commerce companies get into difficulties when they take the step of setting up warehouses, processes, personnel, devices, …..

Our business is growing and this means that we need more space and more resources to be able to maintain the customer service we want to provide, and probably up to this point we have solved the problem by spending hours or occupying spaces that are not suitable for storage tasks.

When to outsource

Outsourcing is a process that has its moment, and without going into the economic part, there are two fundamental reasons that you should consider before tackling it.

  • I am dedicating a huge part of my time or people in my team to warehouse tasks and I should be doing other types of tasks that add value to the business.
  • My growth means I need to set up a warehouse or expand the existing warehouse, both in terms of space and resources.

If in any of these points the answer is positive, you are facing an important decision for your activity and it is time to consider the advantages of outsourcing logistics compared to the traditional model.

Advantages of having a logistics operator

Fundamentally, the advantages of having a good logistics operator are:

  • Economic, as you convert fixed costs into variable costs, you pay according to what you occupy, according to the orders you generate, …..
  • Seasonality, outsourcing allows you to deal with strong sales periods without reducing the service to customers, or to go through periods of lack of orders without affecting our profit and loss account.
  • Quality and customer satisfaction, looking for a good logistics operator that adapts to your needs will allow you to improve the service you provide to your customers, as you will improve preparation times, the means used, reverse logistics processes, customer information, etc.
  • Support in the implantation in other cities or in tackling an internationalisation process with the help of someone with experience.
  • Stock management, a partner who can help you to establish optimal stock levels and who can turn procurement into a continuous and automatic process, which will allow you to have the necessary stock at the right time.
  • Information, having information that helps you make good decisions for your business.
  • Technology, an operator with volume will allow you to incorporate elements into your processes that would otherwise be difficult to access.
  • New services, being able to develop new services that respond to new needs.

In short, logistics is one of the most important aspects within the management of an e-commerce business, and therefore, tackling a growth process supported by a good logistics operator can save you a lot of headaches.

Choosing a good operator

To choose a good logistics operator (there are many and very good ones) you must take into account fundamental aspects such as:

  • the availability of physical warehouses with the capacity to expand
  • that it has well-defined processes that provide quality and reliability in the delivery to the client.
  • that it is flexible and allows you to customise processes that have to do with the image that your customer perceives of your company
  • that integrates with your management systems
  • that allows for new developments

In short, look for adaptability, efficiency and professionalism.

All these aspects are closely linked to your type of business and Pick & Pack will be delighted to help you build a project that allows you to evaluate the option of outsourcing.

For more information you can contact us at info@pickpacksys.com or on our telephone number 603728708.