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Outsourcing the entire warehouse personnel

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  • Outsourcing the entire warehouse personnel

    It is new to me that a company would outsource the entire labor force for a warehouse. The reason is the training expenses for building up the plantilla for the new warehouse. I think that is good to save on cost but isnít it unhealthy to allow another company to operate your own warehouse? Iím sure there will be a checker or auditor not only for the operation but more for the contents of the warehouse. What if the stocks are missing and there is no report because the outsourced personnel are in cahoots?

  • #2
    Some small logistics company have been contracting (sub-contracting is the term that they use) the transport of goods to free up the hassle of maintaining vehicles and personnel. But with the warehouse, I know that it is in the same breath although I really do not agree with outsourcing the entire warehouse because it compromises the integrity of the stocks inside it. What happens if the stocks were pilfered, how can the company recover the losses?

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    • #3
      Hi, I will take for granted that you speak of a logistic provider outsourcing his entire warehouse personnel workforce.
      It is for instance very common in Italy because of the complicated labor law issues .
      In all cases with outsourcing the main challenge is to get personnel who are trained with your goods and keep a track record with them.
      If you consider this option you could mitigate the risks of knowledge transfer and the efficiency by still having in your payroll the warehouse manager: it is for me the most critical position in the warehouse setup and can make things black or white
      Olivier Houart - https://www.smartoperations.ch/en

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