Are there any advantages of outsourcing logistics services in the FMCG sector?

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“If there is something we can’t do more effectively, at a lower cost and better than the competition, there is no point in doing it at all and we should hire someone to do it better that we” - said Henry Ford in 1923 promoting the idea of outsourcing. However, when it comes to making the final decision - to outsource or not to outsource - it is not that simple any more. So are there any benefits of outsourcing in the modern world?

Currently we are dealing with the continuously growing demands of consumers. It forces the producers of food products to look for new solutions, including also in the area of logistics, so that  the goods which get to the shop are always fresh and of the highest quality. 

On the other hand, businesses are more and more aware that only by working together and thanks to the synergy effect, each participant of the supply chain is able to succeed. The synergy is based above all on cooperation and partnership and, what is most important, it is possible because of mutual trust. That's why, in the era of globalization, increased competition and the continuous cost optimisation, more and more producers are deciding to outsource logistics services by entrusting their products to other businesses. 

“Farm to fork” or how can a logistics operator be of help?

By entrusting their goods to a logistics operator, producers are able to focus on their core business. They don't have to directly supervise each leg of the product route from “farm to fork”. This task is taken over by a logistics company which ensures appropriate conditions of transport and warehousing of goods. What's more, in the food sector it is extremely important to monitor warehouse stocks against batch numbers and best-before dates. Here the logistics service provider is able to use modern systems which allow for tracking warehouse stocks and also the course of delivery to the client - thanks to this the whole process is optimised in a way which minimises losses.

Temperature under control

Thermal conditions of storing food products at every stage of their route - from the producer to the consumer - must comply with the provisions of the Food Law in force in Poland and the EU countries. Temperature of goods must be monitored and audited at all times, from the collection from the customer, through the whole process of storage and transport, to the door of the consignee.   It is essential that the cold chain is not interrupted since the shelf life of food products is limited. Particularly in the case of fresh meat or fish, which have very short best-before date, storage and transport in proper thermal condition is a key.  In this case practically every rejected delivery must be disposed of. Fresh Logistics Polska guarantees safety of transported and stored goods which is confirmed by the obtained ISO or OHSAS certificates.

Optimisation and lower costs

It is also worth adding that customers who decided on warehousing their goods in our logistics centres don't have to deal with the risk of extra costs connected, for instance, with seasonal fluctuations. This means that they don't have to maintain their own warehouses which are not fully filled at times of decreased sales of a specific product group. Therefore there are no additional cost to be covered. Thanks to serving various product groups which have their peaks at different times of year, the logistics operator is able to use their warehouse capacity in an optimal manner.

Thanks to the network of warehouses located all over Poland and the membership in the European Food Network, Fresh Logistics Polska is able to deliver goods to any place in Poland and in Europe while maintaining the optimum cost level. Producers who use our domestic or international distribution services can increase their competitive advantage and their goods can reach the most distant destinations.

Everyday delivery?  - it’s not a problem!

A logistics operator also guarantees flexibility in terms of shipment sizes and frequency of deliveries to specific locations. Thanks to the already mentioned network of depots and the groupage connections, Fresh Logistics Polska is able to consolidate goods of several producers which travel to the same destination and deliver them even daily. This allows, above all, for simplification of the unloading process, limiting bureaucracy and better coordination of work of warehouse workers.

Without a doubt outsourcing logistics services helps to significantly decrease costs, ensures high product quality and better operations of the company which, by entrusting logistics operations to professionals, is able to focus on its key competencies. Additionally, there is no need to hire extra staff or invest in specialist software to manage warehouses. All this is take care of by the logistics operator. So the profit and loss account is really simple in this case.

 

27.02.2018
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