Advantages of an outsourcing company for packaging, sorting, cleaning, transportation for your business
According to a report by the European Logistics Association, the logistics outsourcing market in the EU is expected to reach €100 billion by 2025. This suggests that there are a significant number of companies in the EU that are already outsourcing logistics services, and that this number is likely to grow in the coming years.
Some of the factors that are driving the growth of the logistics outsourcing market in the EU include:
- The increasing globalization of trade
- The growth of e-commerce
- The need for companies to reduce costs and improve efficiency
- The increasing complexity of logistics operations
The most common logistics services that are outsourced in the EU include:
- Customs clearance
- Inventory management
- Reverse logistics
The reasons for outsourcing logistics services vary from company to company, but some of the most common reasons include:
- To reduce costs
- To improve efficiency
- To free up time for employees to focus on core activities
- To gain access to specialized expertise
- To expand into new markets
Overall, it is clear that there is a growing demand for logistics outsourcing services in the EU. As businesses look to improve their logistics operations and compete in the global marketplace, they are increasingly turning to outsourcing to help them achieve their goals.
It is important for large companies to properly manage their transporting supply chain. Many of them hire external companies that can provide logistics supply chain management and organize sorting goods. This is logistics outsourcing.
But not everyone realizes the importance of such auxiliary processes. Let’s take a closer look at why it is cheaper and more expedient to hire an external company to provide such services.
What Are the Logistics Services Most Frequently Outsourced?
Auxiliary companies provide a wide range of services, from providing storage space for goods to removing sticker residue from plastic. The most popular are services for:
- Warehousing of goods (receiving and storage);
- Picking, sorting, repair, packing and repacking of products;
- Organizing the delivery of goods to end buyers via carriers;
- Additional services (for example, good dry cleaners).
Each of the above services will help you deliver goods to customers faster and reduce your company’s transportation costs. And WellPack is ready to help you with these issues.
What Is the Primary Reason for Outsourcing Logistics?
Business owners have quite a few reasons to seek the services of auxiliary companies WELL PACK is one of the companies that can help them. First of all, it is the need for large investments in their own transporting complexes for docks sorting goods. In addition to reducing costs, the following reasons are also emphasized:
- The opportunity to give the management of transportation to experts in this field;
- Increased scale of operations and flexibility of processes;
- Reduction of time for delivery of goods;
- Optimization of deliveries;
- Faster growth of your company.
Let’s look at each reason in more detail.
Outsourcing companies can help you reduce your company’s costs. If you outsource the transporting and dry cleaning of goods to our specialists, you will not need to purchase wrapping equipment, materials and hire the appropriate specialists. If you cooperate with an external company, you will be able to use the money you save for the development of other projects and ideas.
Expertise and Quality
Auxiliary companies take the time to learn about current trends in the industry. Because of this, they can better wrap goods and pay attention to details that shipment owners don’t always have time for. Their assistance is aimed at enhancing the protection of customer goods, which automatically improves the customer’s brand image among end buyers
Scalability and Flexibility
Outsourcing companies are always quick to adapt to changes in the market. If you have a surge in sales and need to process orders faster, they will bring in the necessary staff (stickers remover labels, packers, movers, etc.) to prepare goods for shipment faster. Daily, they will bring in as many staff as needed to fulfill the day’s shipments. Therefore, these companies will help you reduce your turnaround time and increase your efficiency, leading to increased loyalty among your customers.
It is a cardinal law in business that time is money. By outsourcing the management of your logistics to an external company, you get the opportunity to deal with other aspects of your business. You do not need to find people to do preparatory work (removing labels from bottles, removing dirt from plastic crates, assembling toys before shipment, assembly of furniture, cleaning car parts). All of this will be the outsourcing company’s concern, and you will concentrate on communicating with customers, goods selling, and making a profit.
Enhanced Supply Chain Management
An outsourcing company will help not only in the delivery of goods but also in its proper wrapping. Even finding the best way to remove labels from jars will influence the optimization of the entire transportation company. Outsourcing companies have their network of carriers and can help you to ensure smooth processes of interaction with manufacturers, buyers, and suppliers. This will help to eliminate errors when packing, loading, and transporting goods, increase the accuracy of delivery times and increase the efficiency of the customer’s company.
As outsourcing companies keep up with current trends, they will not only focus on the speed of delivery but also on the sustainability of product wrapping. By working with outsourcers you won’t have to worry about being provided with wrapping that is not eco-friendly and will need to remove glue, you will get modern, innovative, and eco-friendly materials for your goods, which will reduce the amount of bottom-line waste when delivering the goods to the customer.
Here are some additional statistics that you may find interesting:
- The logistics outsourcing market in the EU is expected to grow at a CAGR of 5% from 2022 to 2025.
- The top three outsourcing destinations for logistics services in the EU are Poland, the Czech Republic, and Romania.
- The most popular logistics services that are outsourced in the EU are transportation, warehousing and distribution.
- The majority of companies that outsource logistics services in the EU do so to reduce costs.
A growing number of companies are also outsourcing logistics services to improve efficiency and gain access to specialized expertise.