6th September 2016
What are the advantages of outsourcing your warehouse? And when should you outsource your warehouse rather than run your it yourself? Fredrik KrysÃ©n gives you the answers here.
As part of our two-piece series of articles on in- and outsourcing the warehouse Transport Director, Fredrik KrysÃ©n, from Aditro Logistics gives you an overview of the benefits of an outsourced warehouse, as well as guides you to when you should outsource your warehouse. In the first article Steffen Larvoll from Lager & Industrisystemer (Warehouse & Industrial Systems) revealed the advantages of an insourced warehouse as well as factors in the decision process, which you can read here.
According to Fredrik KrysÃ©n the biggest advantage of an outsourced warehouse is that it allows for companies to focus on their core business in a greater degree, because they do not have to spend time managing warehouse and transport.
“For most companies, logistics are not part of their core business, and are not prioritized by the management and if they choose to run their own warehouse themselves, this can be a both costly and time-consuming part of their business. Outsourcing logistics allows for savings for up to 10-20%, and release time and opportunity for the company to focus on its core competencies, ” says Fredrik KrysÃ©n, who lists the savings of an outsourced warehouse in the following bullets:
According to Fredrik KrysÃ©n, companies with outsourced logistics also release resources and increase potential revenues in several areas:
“Companies can focus on increasing sales and gain a competitive advantage over competitors as they do not need to spend time and resources on logistics. An outsourced warehouse will also increase customer satisfaction due to an improved delivery reliability, as a 3PL player is able to provide through economies of scale and logistical experience. Finally, an outsourced warehouse grows in line with the company, so the company do not have to worry about lack of space in the warehouse in case of increased sales.”
Fredrik KrysÃ©n brings together the benefits and points to three rules of thumb for when you should outsource your warehouse. Outsourcing is a good idea, if you:
If you want the above advantages and the reasons for outsourcing match your business and strategy, then outsourcing of the warehouse might be the best option for you. If you are in doubt, you can read about the benefits and considerations in relation to an insourced warehouse here.