Blog: In-house logistics is much more than rental work

Author Toni Brigatti is the CEO of Logistikas Ltd

Workforce-hiring companies have managed to create widespread inflation of the term ‘in-house logistics service’. In my opinion, it would be worthwhile for the people on the field to refresh their terminology to ensure correct expressions are utilized.

An inhouse logistic service – as I have interpreted it – always includes not only a competent personnel, but also the handling equipment, the warehouse management system, and management responsibility to guide the operations as promised.

When mindfully producing in-house logistics services, you additionally introduce transparent, transaction-based pricing so the client is aware of the cost of the service beforehand. With these elements, one produces value added for the customer, which completely differs from agency workers whose number determines the sales margin of the operator.

Simple workforce-hiring in logistics is a viable way to managing basic tasks and seeking flexibility, but when offering service to an arduous, difficult client of the technology industry, it seems the best solution is often not found unless the service provider has overall responsibility.

We have often compared a proficient in-house logistics service to an operating room. Creating a picture of a clinical environment where the patient – the machine we need to construct, for example – is cut by the surgeon – the assembler – to whom handing his tools on a tray at the right time is crucial, helps understand the benefits gained from the service.

Would you like to lay on the operating table if the nurses in the room were about to perform their very first surgery?

Continuous reportage, the responsibility of the patient, the preparational tasks (taking the products out the package, washing them, preliminary assembly, etc.) and ones coming after, such as sending the product after packing it, and putting it to a shipping container or a vehicle. The main objective is always an undisturbed line of production and the removal of hidden expenses which come from looking for the products, unnecessary transportations, late deliveries, or issues with the storage location.

The in-house logistics service we offer is sold by many but only executed by few.