Outsourced logistics: the flexibility of space
One of the advantages about outsorced logistics is the flexibily of third-party warehouse space, which can ben adapted to the customer’s actual needs at different times and periods of the year.
Due to the modularity of the service, the outsorced warehouse offers the possibility of occupying only the space that is needed from time to time, following the trend of demand and seasonal fluctuations.
This is a strategic and higly relevant aspect for companies as it generates numerous benefits in both economic and competitive terms:
- Space flexibility: customers can meet their storage needs without having to make structural investments and acquire new warehouse property;
- Fast and effective order management: flexibile outsourced space allows for timely makes it possible, for example, to cope with sales increases that occur during holidays or certain months of the year;
- Savings on incurred costs: by being able to downsize occupied space as needed, companies can save on outsourced warehouse rental costs. Reducing rented space during off-peack periods and increasing it only as needed avoids fixed warehouse expenses and optimizes inventory costs;
- Business Competitiveness: the flexibility of outsourced storage allows companies to buy and sell the market is most favorable. For example, opportunities related to discount on large lots can be seized.
An example of outsourced logistics
Starting scenario. A packaging company must cope with seasonal fluctuations in the market. During Christmas season, in fact, demand increases significantly while in the remaining months it is more subdued. The company has its own warehouse but during holidays the space is not in line for storage needs as well as the human resources are not sufficient to effectively handle the sales peak.
Third-party logistics solution
To deal with this situation, company decides to outsource warehouse management and goods handling during the Christmas period, relying on a third-party logistics partner such as MWM. As a result of its choice, the company gains several benefits:
- Company rents additional warehouse space to meet increased storage needs;
- The packing company can smoothly cope with increased sales in the holiday season. The outsourcing logistics partner also provides additional staff for product handling and order preparation;
- During months when demand is lower, the company reduces rented warehouse space and external human resources costs, lowering operating costs in general;
- The company answers quickly to market fluctuations during holiday season, avoiding the complications of in-house peak management.
Outsourced logistics as a strategic solution
As highlighted in the case described above, outsourced logistics is an adavantageous choice that enables companies to seize market opportunities, improve operational efficiency and save costs at the same time.
By relying on a trained logistic partner, companies can also benefit from specialized know-how and dedicated expertise for optimized and effective handling chain management.
With outsourced logistics, it i salso possible to integrate the rental of storage space with other complementary services, up to the point of outsourcing the entire distribution chain; from pickup at the supplier or production, through the warehouse, to delivery to the end customer.