Logistics outsourcing: what are the benefits?

Supply chain management is more than ever a strategic challenge for companies. Mastering the technological, environmental and social aspects of this constantly changing world can be complex and risky.

To control these risks, some companies choose to outsource their on-site logistics. Find out more about the main advantages of logistics outsourcing in this article.

How do you define logistics outsourcing?

Logistics outsourcing is when a company entrusts a service provider with the management of some or all of its supply chain operations. Outsourcing enables the company to concentrate on its core business, and to become more competitive.

Indeed, all industry professionals agree that logistics is more than ever an essential link in a company's commercial performance. What's more, it requires know-how and rigorous organization to ensure the stability of the production chain. That's why choosing a service provider specialized in logistics outsourcing can be a strategic solution for staying competitive in your market.

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Why outsource logistics? 

Outsourcing helps control costs and reduce financial risks

Many logistics operations can be outsourced: receiving, shipping, storage, handling and picking. Outsourcing these operations offers a number of financial advantages.

Firstly, the company saves on the purchase and maintenance of its fleet of machines and transport vehicles. In fact, all these expenses are borne by the service provider, who makes its logistics resources available to the company. The same applies to the fixed costs of certain logistics warehouses and inventory management.

Furthermore, the company no longer needs to manage the legal obligations associated with this part of its business, thus reducing its financial risk. It also outsources the recruitment and training of logistics personnel.

The company can focus on its core business

Logistics outsourcing enables companies to refocus on their core business. The resources and working time saved enable the company to increase its productivity. Internal processes can be improved, with the aim of delivering superior services and products, and thus increasing customer satisfaction.

By using a service provider specialized in logistics outsourcing, a company's entire supply chain can be optimized. The service provider's expertise in his field means that the company benefits from constant improvement in its logistics processes. Costs and logistics flows are tracked and controlled.

Better management of activity peaks

Even though they are an unavoidable part of a company's life, peaks in activity can nevertheless disrupt its operating equilibrium. To absorb these peaks, adaptability and flexibility are essential. This is where logistics service providers can add considerable value. By adapting to changes in pace and volume, they help the company to maintain its quality of service and thus satisfy its customers. It can also mobilize additional human and material resources more rapidly. As a result, the company does not have to manage a temporary increase in its workforce or storage capacity.

As a seasoned professional, the logistics service provider provides his customer with a guarantee of reliability, even in times of increased activity.

Employee training and management provided by service provider

Another advantage of logistics outsourcing is that the company does not have to bear the financial burden of employee training. As the service provider specializes in the logistics field, he is fully aware of the latest developments in his business. This enables them to provide their employees with high-quality ongoing training. Day-to-day human resources management is also simplified:

  • Preparation of pay slips,
  • Schedule management,
  • Recruitment,
  • Replacement in case of staff absence,
  • Redundancy,
  • Absence and sick leave management,
  • Leave management,
  • Miscellaneous disputes...

As a result, fluctuations in logistics staff do not burden the company's administrative and accounting staff. All company staff can concentrate on their core business.

Onet Logistique supports its customers with a range of logistics services

With over 20 years' expertise in on-site logistics, Onet Logistics works with numerous players in 4 major markets: automotive, aeronautics, industry and distribution.

Onet Logistique's strengths include a dedicated design office and a "methods/continuous innovation" team that supports its customers in their upstream and downstream flow issues.

Logistics consulting and engineering, flow management and control, innovation and expertise: these are the pillars on which Onet Logistics bases its day-to-day activities on behalf of its customers.

Are you planning to outsource part of your supply chain? Contact our experts.

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