Why you should OUTSOURCE your NON-CORE activities

08/02/2019

Most people associate ownership of an asset with being in control of it.  There is a rooted belief that we risk losing control of something when it is not our property and we therefore have to always make sure our name is printed in bold on it.  I guess this dates back to being a child and our mothers labelling all clothes and personal items for us.

In the shared economy these days, the new and improved way of thinking about this riddle is to change our thoughts to “taking ownership”.  If you take ownership, you don’t necessarily have to physically own something, especially when it is not directly related to your core activities and results, and you pay per use, allowing the asset to be shared by others and in turn used in the most optimal way.

We listed 3 major questions that are worth considering before you start investing in reusable assets:

  • Do I need to invest or is sharing reusables a strategic opportunity for my business?
  • Do I really know how much it costs to control my reusable assets ?
  • Can I hire a consultant to help me make the right decision ?

 

1) Do I need to invest or is sharing reusables a strategic opportunity for my business?

It is obvious that you have to keep investing in what is vital for your business as long as you stick to reinforcing your core in the longer term.   All supporting investments need to be analysed in depth to find out to which extent they add value for your company and customers.

As far as secondary and tertiary packaging are concerned (boxes, pallets, IBCs), we feel they should be shared and made reusable as much as possible.  The ownership and management of these reusables can be outsourced to a pooling company to relieve you of the burden of tracing and replacing them.

2) Do I really know how much it costs to control my reusable assets ?

The majority of companies do not know the real total cost of ownership of their reusables, so most likely you are not fully aware.  Depreciation, seasonality, transport, space, maintenance, damage, repair, scrap, replacement, cleaning, administration and other elements can have a considerable impact on the load carrier cost and availability. Outsourcing and having a pooling company run through your factory and costs will bring these costs to the surface and helps to create transparency.

3) Can I hire a consultant to help me make the right decision ?

There are consultants specialized in recommending the appropriate assets and building a good cost model.  A cheaper option is turning to a specialist in pooling and asset control, on a no cure no pay basis.

Many companies rent an office, lease company cars, sign a service contract for printers and hire many more types of services.  These outsourced investments require you to take ownership, but not be the owner.  Sharing resources will reduce your time spent on something that is not strategic for your company, product or service.  And let’s face it, time is our most precious resource…

So… Why not outsource load carrier ownership and management?  Give us a call!

Fabrice Bourrot

Fabrice Bourrot

General Manager France

“A professional life passionately dedicated to the development of reusable handling equipment for food and non-food markets”

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