05 Feb 2018 Outsourcing vs In-House

Why Outsource

Many in the business of supplying building materials, fittings, furniture and hardware can appear to be thriving. But the success of these businesses can suddenly stall. Many companies that experience growth will also inevitably hit a ceiling barrier; coming in many forms such as limited size of current facility, workforce at peak capacity, or expiration of plant, equipment and technology. It is at this stage that businesses will start to explore their options. Quite often the path well-travelled leads to high capital investment in new infrastructure. Keeping things in-house makes for easier management and cost minimisation in the long run. Or does it?

Times are very different compared to 20 years ago, 10 years ago – heck, even 2 years ago. Would you ever have considered a virtual assistant back then? Sometimes companies forget the reason they are in business. Whether they wish to lead in design, or supply bespoke, or have a focus on workmanship, or dominate in market share – they can find themselves easily distracted if relocating, updating software, or experiencing employee churn – but do any of these things have a direct link to their company purpose?

Outsourcing Logistics

As a business, it is never a bad problem to reach a point where you are over-subscribed. But you may need to consider a long-term outsource solution or at least an option to tie you over during peak periods.

It may be beneficial to partner with a third party logistics provider in your industry experienced in project logistics management to manage your overflow, or as a short term solution when trying to expand into other states. Concentrate on outsourcing the functions of your business that are easily transferrable, replicable, and not unique to you – thus freeing your time to focus on what’s important: your customer, your brand and your message.

Areas to consider when outsourcing logistics:

• Storage and warehousing
• Inventory management
• Transport and freight management
• Shipping and receiving goods
• Packing and packaging services
• Project management
• External staffing
• Labour hire
• Vehicle hire
• Display or meeting room hire
• Subleasing

Keep in mind your company values and core culture when sourcing a service or business partnership. Ensuring they work well and in line with your pursuits.