Outsourcing

A critical decision area in the logistics system is determining how logistic functions should be handled. Should they be undertaken by an external company, or kept internal? As numerous, very specific factors must be observed during outsourcing, the expediency of outsourcing arrangements is not to be judged solely according to cost saving potential.

The following may be reasons to consider outsourcing:

• Avoidance of direct investments in (for example) warehousing and transport
• Concentration on core business
• Generation of capacity and investment potential for core business
• Increased efficiency through awarding the process to professionals
• More flexible peak absorption
• Fixed costs become variable
• Cost oriented utilization of synergy effects

However, every outsourcing project must undergo high-level risk management processes; in particular, conceptual preparation with evaluation of all advantages and disadvantages of external assignment.

Our approach to outsourcing projects:

• Detailed recording of eligible logistic processes
• Potential determination (which processes could be outsourced, and what are the risks?)
• Creation of future-oriented outsourcing concepts
• Advertisement and allocation, as well as contract negotiations
• Reduction of personnel and temporal expenses for outsourcing projects
• Cost-calculative evaluation of outsourcing project
• Guarantee of seamless changeover of goods and services (to avoid transfer risks or service and quality deficiencies)
• Effortless infrastructure and personnel transfer (to avoid cost increases and personnel risks)

If, at the end of a thorough analysis, the decision is not in favour of outsourcing, our clients still have the opportunity to improve their profitability and self-directed logistic services with the aid of the analysis results.