E-commerce, Logistics, Education

Building your own logistics or outsourcing logistics processes?

Tomáš Kohút
Tomáš Kohút
Building your own logistics or outsourcing logistics processes?

Logistics is an integral part of every e-shop. The quality of its processes significantly contributes to the success of the business. Especially nowadays, when customers are placing more and more emphasis on accuracy and speed in the delivery of shipments or the originality of packaging. How can you turn your logistics into a strong competitive advantage?

In-house vs. outsourcing?

There are two possible ways. Either you decide to continue with your existing solution, which will require continuous optimization of individual fulfillment processes or adapt to your growth. For example, you will gradually encounter increased demands and costs related to labour, renting a warehouse with sufficient capacity or investing in a warehouse management system (WMS) and other physical warehouse equipment.

The second option is to switch to a fulfillment specialist, which is already adapted in its functioning to the current needs of the e-commerce world. This gives you a partner who is responsible for the quality of your logistics, so you can focus on other areas of your business.

How to make a decicion?

The decision whether to continue to manage logistics completely in-house or to outsource it to an external partner is not an easy one. Our recommendation is: “Start by analysing your logistics costs.” What to include in these costs? Read our e-book, which will guide you step by step to the most accurate result.

How to compare your logistics costs with a fulfillment provider?

At the moment of calculating your total logistics costs, you are also able to find out the price per shipment. That is the price you will pay for the handling and delivery of the order to the end customer. And this metric is the most ideal one to compare with the logistics outsourcing option.

When comparing, also consider the other benefits that a fulfillment service offers. They are behind all the investment, time and other activities you would have to make to optimize your own solution. Add in discounts for shipping, packaging material or the fact that with a fulfillment specialist you only pay for the space needed for your goods and for the warehouse staff to work on your orders.

You can find more information, including practical examples, in our e-book, which can be downloaded here.