What happens if you outsource your onsite logistics to R&HA?
29th January 2024
Many UK manufacturers have never considered outsourcing their onsite logistics operations, so here's a quick overview of the process.
1. Developing the business case for outsourcing your logistics.
Typically outsourcing your onsite logistics provides clearly identifiable costs savings. This is because as experts we can optimise your processes, resources and deliver a more robust solution. The hidden benefit of outsourcing is it allows you to concentrate on strategic activities that directly impact your competitiveness and growth. Enabling you to redirect your focus and resources toward your core business activities. Outsourcing also allows for flexible scaling up or down in response to changing business needs. It means you can reduce the risk and administrative burden associated with managing and monitoring the non-core business area of logistics.
So the first step is quantifying the business case for your unique circumstances.
This will initially be via a free audit of your operations and within 2-3 hours, you will have an objective score of the efficiency levels across your onsite logistics functions.
Each area identified would be scored on three levels
1-10 on efficiency
1-10 on cost to implement change
1-10 on speed at which change can be implemented
A score of 1 would be the lowest impact: i.e. The incumbent process is running efficiently, has the least cost to implement; and change can be implemented in the shortest possible period.
This objective scoring helps us focus our efforts on the greatest wins, identifying the logistics issues where change can be made quickly and provide the greatest return on investment in the shortest timeframe.
2. Commissioning of a single aspect identified for a fixed fee.
A proof-of-concept trial will be priced based upon a percentage of the estimated cost saving in a year. It will have current performance and costs set against our projected KPI’s for a defined period.
This will be based upon an agreed ‘self-contained’ operation identified within your internal logistics audit. We submit a ‘one off’ commercial option to prove the value of outsourcing to experts – without you needing to make a total commitment.
The proof-of-concept trial is to demonstrate our capability and credibility. It will also provide exposure to the inner workings of the business enabling us to review other costs savings.
3. Developing a commercial framework, outsourcing options and KPI's
Upon the successful delivery of KPI’s and demonstration of anticipated savings, the next stage is to establish a more robust commercial framework. We will create three tailored outsourcing options with deliverable KPI's designed to provide you with enough commercial gain, so you can make a considered decision on outsourcing your in-house logistics functions.
The added benefit of outsourcing your in-house logistics function is that it includes access to our team of R&HA subject matter experts.
Our internal leadership team are widely experienced across all the areas of managing a busy UK manufacturing facility. Whether it is sensitive union negotiations, implementing quality or environmental standards specific to a client’s contractual needs – to sourcing flexible contract labour or recruiting the right fit people for your business.
They can be called upon to advise on specific issues, extending and supporting your internal team – at zero additional cost.Back to Insights
Here’s how the 360 onsite logistics audit and assessment works!
Put us to the test, what have you got to lose?
Contact us for a FREE ‘on site' logistics audit – carried out under a non disclosure agreement - our findings will be reported in full confidence and will provide a detailed analysis of where savings and improvements can be made.
There’s only one condition - you must be UK based and be operating in the automotive sector, with a head count of around 25 - 30 or more operating in logistics roles.