Outsourcing logistics improves warehouse efficiency, enhances operational quality, and establishes new operational methods. Enhancing operations involves changes in both procedures and inventory management. Quality improvements are made with upcoming inventory flows by agreeing with suppliers on delivery quality and schedules according to quality standards, and how they will be monitored. The same applies to improving processes for outgoing inventory from warehouses. Actual warehousing is rarely the primary focus for improvement.
Sensitive matters on the table
Development projects require trust and the ability to discuss challenging issues. They often concern existing operational weaknesses or errors. Without addressing them, operations won’t become more efficient, and quality won’t improve. Recognizing and acknowledging the current situation is the basis of a development project. When we and our clients share a common understanding, we initiate the project.
Opening up the current situation, setting goals, and deciding on corrective actions requires the involvement of third parties in the development project. Involving subcontractors is crucial. Accuracy of information is crucial in all stages of the development project. This means, among other things, that subcontractors are required to provide digital data transmission according to agreed standards.
A project that enhances all logistics processes typically takes from one to two years. Development projects become even more demanding if multi-tiered subcontracting chains extend across continents.
Taking one step at a time
Our outsourcing projects typically proceed one step at a time according to our clients’ needs. We closely discuss with the client how each developmental step serves the overall business of our client. Logistics outsourcing is based on partnership, trust, and long-term joint development.
When creating new services for our customers, we always consider cost, service quality, and sustainability. Our services are easy to obtain because over the years, we have developed dozens of ready-made service concepts.
On the other hand, we are very flexible in developing new ones when our customers seek increased productivity or better service quality, such as error-free performance or faster turnaround times.
Logistics adapts as business changes
When developing outsourcing services for our customers, we always consider how our customer’s business may change and what requirements changes may impose on logistics. This means, among other things, that we take into account the seasonal variations in business and their impact on the required capacity for handling material flows.
Flexibility and adapting to customer needs require unimpeded information flow. For example, when our customer’s business undergoes a significant launch, we receive detailed information well in advance, allowing us to plan our operations optimally for the launch period. We allocate our capacity and organize our operations in a way that the launch does not affect the day-to-day operations of other customers in our multi-client warehouse.
A similar situation arises when our customer makes a business acquisition. Then, it is rarely known exactly how much inventory will come, so we conduct a rough analysis together with our customer. When situations change, we can react quickly.
Increasing automation and digitalization, process changes, and improving information flow and data accuracy are areas of development where we improve factory floor internal logistics. Simply by optimizing packaging and storage, improving the flow of incoming goods, and reducing buffer areas, a lot can be achieved. At best, we have managed to reduce logistics areas by a third, which has been transferred to production use.
Creating a safe atmosphere for employees in outsourcing
In outsourcing situations, there are two types of companies: those outsourcing their logistics for the first time and those transferring their operations from another outsourcer to us. For companies outsourcing for the first time, the most significant change comes from the increased efficiency in logistics and the clear rise in quality due to our capacity and standard processes. Quality materializes in many ways: product data improves, inventories are more accurate, and product availability improves.
Outsourcing means a big change in information flow. When the warehouse is no longer in the company’s own premises, we ensure that information flows smoothly between us and our customer. Logistics outsourcing does not happen all at once but is a continuous development while the customer’s business changes.
When our customer comes from another operator, we first assess how well our customer knows their warehouse and its operations. Another important thing is planning the move. This includes not only material transfers but also the quality of warehouse-related data and its smooth transfer.
When our customer outsources either their warehouse or internal logistics to us, the reception of employees is our first and most important task. Employees are key in this. We go through the change and its effects on their work with them.
In the second stage, we familiarize employees with our operating methods. In the third stage, we create a forward-looking view for employees so that they feel secure. We tell them that logistics experts are the most important employees of HUB logistics.
Joni Sundelin
CEO
>>Read about our warehousing services
>>Internal logistics services
Outsourcing logistics brings clarity instead of confusion.
Contact us and we will tell you how things can be resolved.
