How the outsourcing of logistics processes can add value
Outsourcing in logistics: A risk or an opportunity?
Brexit, COVID-19, punitive tariffs, the drop in quality and the generally perceived market uncertainty: the security of supply chains has recently gained renewed prominence in many sectors. The debate has also brought outsourcing back to the fore. Those now looking to integrate reliable and experienced logistics partners into their supply chain will gain stable supply chains and latitude to focus intensively on their core tasks in uncertain times.
When someone specialises in one task, they work more effectively. The more processes you can outsource, the more resources you can commit to your own core business. At the same time, however, you become more dependent. Thus, companies must consider the following: do you devote more attention to a high level of expertise in-house, or are there areas where outsourcing has nothing but benefits?
The unique position of logistics
Most companies in logistics are not faced with the challenge of whether but to what extent they should outsource. Without a reliable logistics partner, it is virtually impossible to supply the end customer, retail or the large central warehouses with your own products. Whether storage, packaging, transport, order picking: the effort put into logistics would tie up so many resources that economic viability would be practically impossible. The decision to outsource processes or not should always depend on individual customer needs and specific product requirements.
Value-added services: efficient workflows, low risk
Sometimes, a little help can make a big difference. The AMC Natural Drinks company from Madrid decided to relocate its own packaging machine from the company’s branch in Vlissingen to the Bochum branch of the Nagel-Group. The advantage being: after packaging, the products go straight to distribution. This simplified processing also frees up capacities for the core business. The company incurs no risk since it is still the company’s own machine; however, it streamlines the entire process considerably.
Full service: when logistics rises to the challenge
For example, the support provided for the smoothie manufacturer true fruits is more extensive: tailored solutions allowed the logistics department to grow gradually with the young start-up and open up new markets together. Today, true fruits is Germany’s most successful producer in this market segment. The Nagel-Group has remained at their side; mapping the entire supply chain from production for the Bonn-based company since its third financial year.
The Nagel-Group handles all transport and storage services for the Schwartauer Werke company plant. Every day, approximately 590,000 jars of jam are delivered to supermarkets in Germany from Schleswig-Holstein. “This long-standing cooperation has made the Nagel-Group a reliable partner that knows the ins and outs of the procedural requirements of our business and the specific features of our products,” sums up Dirk Löding, Managing Director of Production, Technology, and Logistics at Schwartau.
Tailored logistics solutions – a formula for success
The elements of logistics that should be outsourced is highly dependent on the specific situation. However, it is always essential that the concept fits the company and its product. Jeroen Van Overloop, Group Supply Chain Director at the Belgian meat and sausage producer Ter Beke, a long-term partner of the Nagel-Group, sums it up as follows: “Scalability, flexibility and, above all, reliability in execution are the key factors for a stable and solid partnership.” The ability to tailor the service package to your individual needs without compromise is the formula that makes outsourcing logistics such a success.