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Advantages and disadvantages of warehouse process outsourcing

2017-09-29 17:25:58278

Warehousing process outsourcing refers to the outsourcing of warehousing projects. According to the actual needs of the contracting enterprise, the two parties provide part of the process or the whole process outsourcing services for the workload of warehousing. The two parties settle the expenses according to the capacity and workload, formulate relevant outsourcing plans according to the assessment indicators, and directly participate in the operation and management of the contracting task of the contracting enterprise.

Including personnel organization, salary setting and accounting, on-site production management, post arrangement, etc. with the assistance of the employer, the project output shall be completed on time and quality to meet the actual output and standard specified by the employer. After the project is completed, the company will recover the labor personnel and settle the total expenses of both parties with the employer, and the project will be completed.


At present, more and more warehousing enterprises are still trying to provide customers with a variety of value-added services that meet their needs. The most common warehousing value-added services are related to packaging and reprocessing.


Generally, the products are shipped to the warehouse in bulk or without labels. There is no big difference between the goods, but it is not the case as required in the customer's order. Therefore, the warehouse operator can customize and distribute the goods according to the customer's requirements.


Value added services are often short, complex and numerous, and are not suitable for long-term employees. As an added value to meet the needs of customers, it does not belong to the core business. The above problems can be quickly solved through process outsourcing services.


Both parties shall settle the expenses according to the capacity and workload. After the project is completed, the company will recover the labor personnel and settle the total expenses of both parties with the owner. The project will be completed. Convenient, fast and efficient to meet the needs of value-added services.


The logistics warehouse has always been the place where goods are transferred and stored. The logistics warehouse usually has a huge cargo flow, and there are countless goods to be loaded and unloaded every day. It is difficult to complete such a large amount of handling work only by the warehouse management personnel and warehouse porters. Therefore, many logistics warehouses outsource the handling work to professional teams.


"Benefits" of warehouse process outsourcing


1. To reduce the operation cost, the goods handling warehouse needs to invest human, material and financial resources. Warehouse handling outsourcing does not require the enterprise to allocate warehouse personnel, operating equipment and other necessary hardware facilities.

2. Standardize management and improve employment safety. Generally, the outsourced handling team has special management personnel, so the warehouse does not need to carry out safety training and relevant responsibilities for the handling personnel.

3. Improve efficiency, speed up cargo loading and unloading, and reduce intermediate consumption time.

4. Reduce the employment risk. Compared with labor dispatch, the warehouse party does not bear joint and several liability.

5. Improve labor management and reduce complicated personnel affairs so that enterprises can concentrate on core business.

6. Reduce the trouble caused by labor disputes.


Disadvantages of warehouse process outsourcing


Indirect management will affect the work quality and reduce the service level to a certain extent. After outsourcing, the outsourcing undertaking unit will carry out specific management and supervision on the labor process of workers. The management level will increase to a certain extent, which will weaken the ability to control the work quality and service quality. Any handling outsourcing service beyond the scope of the outsourcing contract must be approved by the outsourcing unit before relevant work can be carried out. Therefore, it is unable to respond to various unexpected needs in a timely manner, Affecting work quality and service level.


The warehouse operation cost will increase to some extent. After the outsourcing mode is adopted, in addition to the labor cost, the warehouse will also bear the management cost and service cost of the outsourcing company, and the total operating cost of the warehouse will certainly increase to a certain extent.


There will be fluctuations in the thinking of employees, which will affect the stability of the staff to a certain extent. After the transportation outsourcing, the outsourcing unit will be responsible for the specific management of the staff. In order to increase the profit level, the outsourcing unit will consider the maximum rate of return. The management of the staff will be extremely strict, and the monitoring of the staff's ideological dynamics will be ignored. Problems such as unclear interpretation of the contract subject will lead to dissatisfaction among the staff and affect the stability of the staff.


Source: warehouse community


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