Vialog Fulfillment, e-commerce logistics

When to outsource logistics: seven signs

There is no magic order count. There are signs: if you recognise three of these seven, it is worth requesting a quote.

Published · Vialog Fulfillment

The seven signs

1. You pack orders at hours when you should be selling or designing. 2. Stock no longer fits, or it fits but you do not know how much there is. 3. You ship the wrong product more than once a month. 4. On Black Friday or during a campaign you ship late. 5. You want to sell on Amazon or marketplaces and their deadlines scare you. 6. Your cost per order (your time, premises, packaging) exceeds what a provider would charge. 7. You are about to hire someone just to pack orders.

And when not to

If you sell fewer than a few dozen orders a month and the product is simple, packing them yourself is still reasonable. If your product needs very special handling (cold chain, dangerous goods, furniture), look for a niche provider.

When to outsource logistics: frequently asked questions

At how many orders does outsourcing logistics pay off?

There is no exact figure, but from a few dozen orders a month it usually pays off, and from a few hundred almost always. More than the number, compare your real cost per order (your hours, premises and packaging) with what a provider would charge for your volume.

What are the risks of outsourcing logistics?

The main ones are losing sight of your stock, depending on a provider that makes mistakes and being tied to a long contract. You reduce them by choosing one that shows you stock and orders in real time, verifies every order by barcode and works without lock-in, so you can leave if it does not deliver.

Is it better to hire someone or outsource logistics?

It depends on your volume and how much it varies: an employee is a fixed cost you pay even in a slow month and who cannot cover peaks or holidays, while a provider charges for what you move and absorbs campaigns. Compare the total cost of the person, premises and packaging with a real quote.

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