How much does it cost to outsource logistics in the UK?
The cost of outsourcing logistics in the UK can cost around £3-£12 per pallet per week for storage, but will depend on how involved you want the logistics company to be.
Full logistics services with a 3PL (third-party logistics) company could be a worthwhile investment if you’re looking for one company to do everything. By outsourcing logistics, you streamline processes, reduce the risk of errors and save precious time and money.
If you’re looking for a professional logistics partner, we can help. At SFI, we have over 30 years’ experience providing seamless logistics services to manufacturers, dealers, corporates and more.
Contact us today for a personalised quote!
What are the costs when outsourcing logistics?
The costs when outsourcing commercial logistics typically include:
Warehousing
Typically, when outsourcing logistics, warehousing and warehouse management costs are calculated per pallet shelf or bin. Prices could be charged weekly or monthly and cost anywhere from £3 to £12 per pallet per week, depending on factors like location.
Unlike warehouse storage which charges a fixed fee per square foot, logistics warehousing is based on the amount of inventory requiring storage.
Integration
By outsourcing logistics, you gain access to advanced technology that tracks your inventory in real time. This helps you process orders quickly and see exactly what’s in stock at any given moment.
Rather than having to pay for logistics software or to train staff how to use it, this is already done by the logistics team so that your inventory information is consistently updated and you can make better company decisions.
Inventory management
Logistics prices will include inventory management costs based on the level of service you need. For example, inventory management could include receiving and sorting products in the warehouse as well as keeping track of inventory with real-time updates.
Outsourcing inventory management can also help companies understand when their stock might be in high demand, so they can prepare for peak seasons and budget more effectively.
Order fulfilment
You may need your logistics company to handle order fulfilment. This will include “pick-and-pack” - picking the right items from shelves and preparing them for shipment. The logistics company can select the product, professionally pack it, ensure it has the right documents and prepare it for shipping.
Pick-and-pack fees in the UK range from around £1.50 to £3.50 per order, however this will depend on the logistics company.
If products require special handling, such as high-value or fragile items, the price could vary. Outsourcing order fulfilment can reduce the risk of late deliveries, make sure you’re always sending out the right product and help you keep track of inventory along the way.
Shipping & distribution
After preparing and packing items, logistics companies can handle the shipping. Not only do they make sure your product reaches the customer, they also plan the most efficient delivery routes - to save you money and time.
Shipping costs will vary depending on the weight and dimensions of the product and where it’s being shipped to. Good logistics companies will try to optimise shipping as much as possible, from selecting the right courier or vehicle for the journey to calculating the most time- and cost-efficient delivery routes and schedules.
Due to their relationship with a large network of carriers, 3PLs can usually negotiate the best prices.
Reverse logistics
Some logistics companies will even handle reverse logistics, meaning that it can receive returns and handle the next steps like product inspection, restocking returned items or handling client refunds. This is especially helpful for retail, ecommerce or electronics companies and can improve customer experience by making returns simple.
What are the benefits of outsourcing logistics?
Choosing the right logistics partner for outsourcing comes with many benefits including:
Expert staff
3PL staff have the software, equipment and systems needed to manage commercial logistics efficiently, even when handling large volumes of orders.
SFI has over 30 years’ of experience supporting companies with their logistics - including everything from warehousing and storage to stock management, order fulfilment and distribution. Contact us today for a bespoke quote.
Scalability
Outsourcing logistics gives you the flexibility to easily scale operations based on demand. This is great for smaller businesses looking to grow or companies who have certain peak periods. 3PLs can quickly allocate more resources if there’s increased demand or scale down to keep costs low during periods of lower demand.
Cost savings
When you outsource logistics, you don’t have to pay to train staff or rent a warehouse. Instead, the cost of logistics includes all necessary services in one payment.
Free up time and resources
One of the key benefits to outsourcing logistics is the time and resources it frees up for your own staff, allowing you to focus on customer service, product development, marketing and company growth.
With your storage, delivery and order fulfilment taken care of, you can concentrate on growing your business.
Efficiency
Bringing your logistics together under one roof means you can benefit from faster delivery times, smoother operations and happier customers.
Professional logistics companies are experts at optimising all processes, with systems and software in place to increase accuracy and save time at each step.
Professional logistics services with SFI
At SFI, we have decades of experience in logistics, helping companies across multiple sectors with everything from warehousing and stock management to order fulfilment, delivery and furniture installations.
We handle everything when it comes to logistics so that you can focus on growing your business. If you’re looking to streamline operations to save valuable time and money, get in touch today for a bespoke quote!