Outsourcing logistics can help in a turbulent market situation – keep expenses in check for the remaining year

Many companies are now facing uncertainty. Volumes and situations are changing, making the future difficult to predict. Your profit can melt away in an instant if you lack the ability to react on time. 
Outsourcing logistics is a way to adjust your company’s cost structure. It turns fixed costs into variable costs, reduces the balance sheet, and decreases market risks. 

Photo: Sakari Kiiskinen, SVP, Transval, explains how outsourcing logistics is a way to adapt a company's cost structures in a changing market.

Outsourcing logistics can decrease your costs by 10–30% 

Logistics is the process of moving information and material flows in an optimal manner. Changing volumes and situations have an impact on logistics. When volumes grow, production is in alert with not enough employees, and when sales struggles, there’s not enough work for everyone. 
Every financial and business leader must think how to adjust costs during uncertain times. If your personnel and machinery are not truly variable costs, they will not offer flexibility when it is needed. 

“If you have more than five people working in logistics, it is a good idea to view your expenses critically and at least try to open the internal cost structure. Outsourcing is not a suitable option for everyone, but evaluating the situation is. Outsourcing can turn even more than 40 percent of fixed logistics costs into variable costs, while also decreasing the total expenses. We can provide you with pre-trained staff on short notice. In the middle of a hectic period, there is no need to train any more - even high volumes can be handled efficiently with personnel who are familiar with the specifics of different processes,” tells Sakari Kiiskinen, SVP, Transval.

A logistics partner can boost and scale up operations 

As your partner, we take logistics off your shoulders and share the risks. When we handle logistics, you can focus on your core business. 

“It’s important that your partner can share the load when volumes go down or demand increases suddenly. When the size of the logistics partner and its personnel is significant enough, it can quickly channel input where it’s needed,” states Kiiskinen.

We also help increase the effectiveness of your daily work. Things like inventory turnover, decreasing warehouse times, and increasing lead times all show up on the bottom line, whether you’re in manufacturing, wholesale, or e-commerce. Constant improvement is part of our work. 

Here’s how we can help as your logistics partner: 

  • We optimize material streams in logistics functions 
  • We utilize data streams and identify bottlenecks in operations 
  • We offer an outsourcing rate that fits your company 
  • You can move your logistics personnel to us and turn your fixed personnel costs into variable costs 
  • You can purchase warehousing services, which decreases your property costs and removes machinery from your balance sheet 
  • We bring strong lean six sigma capabilities and other methods of increasing efficiency, which we have acquired through our extensive experience 

Read also how we have helped our customers to improved their logistics efficiency