One of the greatest challenges in running a business is managing time and resources effectively. For example, packing and shipping tasks are things your company can do, but is it more cost-effective than paying something else? Here’s a guide that explores whether you should outsource packing and shipping.
The Pros of Outsourced Shipping
When evaluating a huge decision like outsourcing daily tasks, you must consider your company’s current operations. What is your core business? Do you and your workers have enough time to do everything needed for these tasks? When you fail to manage your core business well, your company will suffer and possibly fail. That’s a key reason only 20 percent of new businesses survive the first year.
Unless shipping is your core business, your decision to do this task expends resources that are better spent elsewhere. By outsourcing, you can have a competent professional ship your products better than you would. Best of all, you don’t have the aggravation of worrying about shipping. Someone else is doing it for you.
The Cons of Outsourced Shipping
Shipping isn’t a menial task by any stretch, but it’s also not a difficult one for most businesses. Everyone has experience performing these duties, so your workers require little training. As such, in-house shipping is cheaper and more efficient than outsourced shipping.
Most importantly, doing your own shipping is economical. You can shop for the best rates, and you can develop the best processes to reduce all shipping costs. An outsourced company will charge you for your deliveries. This business has to turn a profit as well. When you outsource your shipping, you’re going to spend more money. Since liquidity is critical to a company’s success, you may not want to waste capital on shipping.
The Pros of Outsourced Packing
Packing is similar to shipping. You’re readying goods for delivery to customers, warehouses, and other business offices. The process drains resources and places the onus on your company to handle the task. If your workers make any mistakes during packing, you must take full responsibility with your customers.
Outsourcing your packing gives you someone to blame in the event of disaster. Should your packages include broken goods or the wrong items, you can honestly state that it is someone else’s fault. This third party bears the responsibility of making things right with the customer.
The Cons of Outsourced Packing
Rather than outsource your packing, you can easily do it on site. Many quality tools are available that can lift and stack even the heaviest goods. By making a few savvy one-time equipment purchases, you give your staff the means to do packing when needed. In other words, you take control of the process by handling your own packing.
Also, you’ll save a great deal of money. Packing is something a company must do on site in most cases. The business that you hire to do your packing will charge you for transportation, employee hours, and other expenses. These costs can ruin your liquidity.
The pros and cons of outsourcing packing and shipping effectively counteract one another. As such, the best option depends on the business. Use the information above to make an informed choice for your company.