In-house or outsourced transport?
What not to forget when deciding.
Promising start-ups or smaller entrepreneurs often don't even consider using external companies to transport their goods or components needed for production. It usually comes as a surprise then that they can save themselves the hassle and expense. There are, however, several aspects of whether to choose in-house or to outsource these services.
There are many pros and cons to consider when deciding whether to outsource or handle transportation in-house. Sometimes it's not easy to understand all the context that is important to make the right decision.
Dušan Vilhan, Sales Director of Geis SK, which helps companies of different sizes with transport and storage of goods, says: "It often happens that companies initially fail to properly evaluate the costs of in-house transport, usually underestimating them."
However, take a look for yourself at what is important to consider when making your decision:
Focus on business
To give you the time and space to focus on the true core of your business, outsourcing is the ideal choice. You don't need any new resources or capacity and you remain as flexible as possible in your industry.
However, companies at risk of revealing know-how should beware.
Changes in demand and seasonality
Nowadays it is also very important to think about rapid changes in demand, whether it is growing or, unfortunately, declining. How will you react in the event of a sharp change in demand? How will you deal with seasonal fluctuations? Will you be short or overstaffed or overworked?
Since outsourcing turns fixed transportation costs into variable ones, by using an external carrier you can worry less. Dušan Vilhan from Geis SK explains the view of the leader on the Czech market "Thanks to our extensive network of branches, technical background, technology and other resources, our capacity is so extensive that we can cover seasonal and other unexpected fluctuations without any significant problems. Covid has brought us additional new experience in this respect."
Technical and technological background
Warehouse facilities, vehicle fleet and its modernization, monitoring of new market innovations, high-tech equipment, use of the latest technologies, optimization of processes, risk of downtime in case of equipment or vehicle failure - all this significantly affects the cost and time for transporting one shipment.
Can you assess what you need and can you provide on your own? How much will the chosen solution cost you? And how much would it cost with a specialist company? Do you know what shipping service your customer expects? Can you offer it?
The view in terms of staff, their qualifications and capacity, is very similar to that of other resources. A professional carrier can provide almost anything you can think of. Think about what you specifically need, how much it will cost, and whether it is realistic to handle it in-house.
How many workers will you need? Is demand stable throughout the year/month/week or do you have to deal with fluctuations? What if someone gets sick? Does your employee have to be able to handle the day-to-day agenda, plus occasionally arrange something regarding transportation, or does he/she specialize only in transportation? Can you retain such an employee to provide your customers with first class service?
Possibility of capacity expansion
Imagine a situation where your business has grown to unexpected proportions. "Right at this moment, most companies are approaching us and asking us for help with transporting either pallets or whole trucks, and they are also looking for new storage options. More and more often they need to arrange customs administration or solve how to pack goods more economically and quickly," says Dušan Vilhan from Geis SK.
What about sudden challenges? Due to the shipping crisis, Geis has started to provide its clients with the option of trucking from China. The journey takes around 20 days, sometimes less. When a customer is in a hurry, but doesn't want to spend a lot of money on air freight, he chooses this option. Can you transport your goods to or from China yourself?
Special and non-standard services
Need something extra? Can you handle it yourself, do you need a consultation or a direct professional service?Is it special packaging material, non-standard pallets, copackaging services, value-added services (VAS), finishing production work? Or something else? Large shippers are usually well prepared for these situations.
Tomáš Körner, Product Manager Packaging at Geis CZ+SK, explains what's possible: "Shipping the wing of an ultralight aircraft overseas or part of the turbine of a 56-ton tugboat? We really can handle it all."
In light of all the decision-making aspects, the overall cost implications need to be well assessed, but also non-economic criteria such as administrative burden and the ability to manage it.
With specialist companies, you can often also look forward to reliability and a fair relationship. However, it is experience that is essential and it is this experience that significantly speeds up and cheapens the process. After all, someone else has already tried what works and what doesn't many times for you. As Dušan Vilhan, Sales Director of Geis SK, says: "The biggest player on the market does not necessarily mean a factory with a unified and inflexible product or service. On the contrary, we pride ourselves on an individualised approach. We do not want our clients to be just a number in a warehouse. We always solve what our customers need and adapt to that. With our capacities, this is not difficult. In addition, we always try to advise our customers, because in our experience, the solution they choose may not always be the most effective."
If you're still not sure, or if you're wondering what Geis can offer you as a leader on the Slovak market of palletised shipments, just ask. You can request a no-obligation quote for pallet transport, full truckload transport, docking, warehousing and any other related services at firstname.lastname@example.org or by calling 18 181 (customer line).
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