Managing and maximising the efficiency of warehouses and associated services is not something everyone can do. Outsourcing these tasks so that your business can dedicate its efforts to core business activities can reduce costs.
Depending on how they are managed, the stores can become means to improve competitiveness and increase the profits of your company. The handling of inventories is not a simple factor of procedures. It is a fundamental factor that contributes to productivity. The competitiveness of markets requires companies to work with inventories that are increasingly low and with an increasingly high quality of service.
Seeking competitive advantage
In these times of greater competitiveness, companies seek to use the methods and systems that make them more competitive and efficient. Factors which contribute to these objectives include greater flexibility and high-value dedicated equipment such as packing and labelling machines, as well as optimal management systems (storage, inventories, etc.), which are vital for the proper functioning of warehouses.
Outsourcing non-core business functions
Outsourcing or subcontracting is the management or execution of a business function by an external provider. The company that subcontracts transfers part of the administrative and operational control to the subcontracted company so that it can perform its tasks without any problem. Between the subcontracting company and the subcontracted company, there must be a high degree of confidence since both carry out an important exchange of information and must coordinate on a permanent basis.
The key to outsourcing is that it allows the company to concentrate its efforts on the activities directly linked to its business. For example, a company dedicated to the production of wooden furniture does not have to dedicate itself directly to hiring personnel for cleaning, security or maintenance of their computers. A company dedicated to manufacturing can easily outsource the packaging, product labelling and storage and logistics functions. Moreover, by dispersing their efforts in such dissimilar activities, it is likely that they will not be efficient in more than one of them, which will have the consequence of increasing their costs.
Cost benefit and added value
Extending this concept to storage management, we will have the same conclusion. The subcontracting of this storage, labelling, and packing functions, etc. to a specialised company supposes greater agility in the handling of the transferred processes, shorter processing times, as well as the reduction of operative and labour costs.
In this way, the subcontracting company will add value for the benefit of its customers and products and will be better able to devote itself to the business of its core business, which will help improve its sales results.
Among the specific services offered by companies that provide outsourcing in warehouse management and product packaging and labelling, are the optimisation of the time from when an order is placed until the receipt of materials (lead time or critical period); the implementation of High, Low and Modification procedures (ABM); the optimisation and maintenance of the storage system (software) and physical distribution (layout); protection and conservation of materials; identification and handling of materials with labels with bar codes and RFID radio frequency; control of the entry and exit of materials and merchandise from the warehouse; and cross docking by product, and by order.