Outsourced Frozen Food Warehousing – The Competitive Advantage

Many manufacturers and producers are currently choosing to outsource their frozen food warehousing. This is for a number of reasons but is often because it is a cost-effective option and can allow companies to focus on the core competencies of their business thereby giving them a competitive advantage.

Partner Logistics is the eighth largest public refrigerated warehousing company globally by capacity, according to the International Association of Refrigerated Warehouses (IARW). They operate six super-sized warehouses: three in The Netherlands, two in the UK and one in Belgium which collectively manage over five million pallet movements every year. They are specialists in designing, building and developing deep-freeze warehousing and store products for a number of leading frozen food companies such as Birds Eye, Lamb Weston and Pinguin.

All of their warehouses are almost entirely automated, which reduces manual handling and leads to best-in-class accuracy for performance metrics such as order fill, load performance and preparation time.

Partner Logistics is often selected to provide frozen food storage due to their tailor-made approach, efficiency and commitment to a green and sustainable supply chain. However, they also provide a cost-effective service for many businesses, resulting in an advantage over companies that ‘go it alone’ and decide to provide and manage their own frozen food warehousing.

Business benefits of outsourcing frozen food warehousing include:

Keeping down costs

By outsourcing warehousing a number of costs can be eliminated. These include salaries of warehouse staff, funding to provide and manage a customer service system, insurance, electric power, heating/cooling costs, and materials. The company is simply paying for what it needs and not wasting money on under-utilised warehouses and staff to run them. Furthermore, there is more effective control over costs and the company can stick to a monthly invoice instead of paying variable costs throughout the month, which often adds up and isn’t practical.

Supporting growth

Partner Logistics provide an infrastructure so companies don’t have to plough excessive investments into their own warehousing and gives them complete flexibility. Furthermore, Partner Logistics are much better equipped and flexible to deal with fluctuations in production and sudden peaks in customer demand at busy times such as the Christmas and summer periods.

Focusing on the core business

Through outsourcing their warehousing, producers and manufacturers can focus on their core business functions – such as producing quality products and growing their customer base rather than diverting valuable energy and resources into warehousing, transport and fulfilment issues.

Exploiting expertise

Through outsourcing, companies have greater access to highly knowledgeable  warehouse professionals who have a huge amount of experience in the logistics industry. These professionals work solely within the cold storage link in the temperature controlled supply chain and this is perceived as a lower risk for companies as they know they are putting their logistics needs in the hands of professionals with great expertise.

Outsourcing can also mean that companies have greater access to new technology, such as detailed inventory software which can keep them up to date with warehouse performance metrics which they can relay onto their internal team.

For further information on our frozen food warehousing or to discuss your business requirements pleasecontact us