Outsourcing in warehouse operations can be a strategic move for businesses aiming to streamline their processes, reduce costs, and focus on core competencies. Several key business processes in warehouse operations are particularly well-suited for outsourcing, given their specific skill requirements and the advantages of partnering with specialised service providers.
Let’s take a look at the various processes that particularly suit business processes outsourcing (BPO):
Inventory management: This process involves tracking and managing stock levels, ensuring accurate inventory counts, and maintaining optimal stock levels to meet demand without overstocking.
Logistics: Involves overseeing the movement, storage, and flow of goods, including the loading and unloading of products, managing both import and export goods, as well as handling break bulk cargo. It also encompasses pallet conversion (repackaging goods onto pallets suitable for transport), and ensuring that products meet local regulatory requirements by stickering them for local compliance.
Order fulfillment: Includes picking, packing, auditing, loading and any other key area that can be efficiently managed by outsourced providers. This process requires precision, speed, and reliability to ensure that orders are processed correctly and delivered on time.
Customer service: This encompasses different elements, such as handling inquiries, processing returns, and managing complaints through our own internal call centre.
The benefits of outsourcing business processes (BPO)
Outsourcing key business processes in warehouse operations can play a crucial role in addressing supply chain disruptions and enhancing operational efficiency. By leveraging the expertise of specialised service providers, warehousing businesses can ensure a more resilient and responsive supply chain, capable of adapting to unforeseen challenges and maintaining a high level of performance.
One of the primary benefits of outsourcing is the ability to access skills across many different platforms, industries and operational IP that might otherwise be cost-prohibitive for a single business to have in house.
Order fulfillment is another area where outsourcing can enhance operational efficiency. They are equipped to handle large volumes of orders with high accuracy and speed. They employ best practices to streamline picking and packing, processes. This not only reduces the likelihood of errors and delays but also ensures that customer orders are processed and dispatched swiftly. During periods of high demand or supply chain disruptions, the scalability of outsourced fulfillment services can be a significant asset, enabling businesses to maintain service levels without overburdening their own operations.
Outsourcing customer service related to warehouse operations helps in maintaining a high level of customer satisfaction, even during disruptions. Professional customer service teams are trained to handle inquiries and complaints efficiently, providing timely updates and resolutions to customers. This proactive communication helps manage customer expectations and mitigates the negative impact of supply chain issues on customer relationships.
How FunxionO can help
We simplify complexity for all your warehousing activities by providing outsourced outcomes-based service solutions that optimise costs by accelerating operational efficiencies. FunxionO currently services its warehousing clients in both inbound and outbound value chains. We are geared to perform a variety of warehouse value chain services as an outsourced partner to a vast range of clients across South Africa. Utilising our best practice solutions enables department efficiencies in the challenging environment.
