Metroplan defines this as the structured analysis, evaluation, tendering, awarding and implementation of the outsourcing of transport and warehousing services.
Outsourcing of logistics services: a structured approach to outsourcing transport and warehousing
Companies are regularly faced with the question of which logistics services should be provided in-house on a long-term basis and which services can be delivered more cost-effectively, flexibly or reliably by external partners. Particularly in the case of transport and warehousing services, outsourcing often presents opportunities to improve costs, scalability, service and manageability. At the same time, make-or-buy decisions in this area are strategically and operationally challenging, as they affect processes, locations, service provider structures, contracts and, frequently, personnel issues as well.
Making an informed ‘make-or-buy’ decision for transport and warehousing services
Metroplan supports companies in preparing, thoroughly evaluating and reliably implementing outsourcing decisions for logistics services in a structured manner. We assist with analysing the current scope of services, assessing suitable outsourcing scopes, the tendering process and awarding contracts to logistics service providers, as well as implementing the future target structure. In doing so, we consider not only economic and operational aspects, but also the organisational and employment law framework of a potential outsourcing arrangement. In practice, we frequently take on projects because companies are unable to build up sufficient in-house procurement capacity or the necessary specialist knowledge for complex service categories such as transport and warehousing services. In such cases, our specialist buyers ensure professional support for the internal users right from the start of the project.
Which logistics services are suitable for outsourcing
The outsourcing of logistics services primarily concerns transport and warehousing services, where external service providers can offer economies of scale, flexibility, regional networks or specialised operating models. Typical areas under consideration include plant transport, distribution transport, inbound and outbound transport, warehouse operations, transhipment, order picking, value-added services or site-specific logistics sub-processes.
- Evaluate transport services in comparison with internal operating models
- Analyse warehousing services and site-specific logistics processes
- Define performance requirements, service levels and scalability
- Structured definition of scopes suitable for tendering and target scenarios
The focus here is not merely on whether external providers are cheaper. Rather, the decisive factor is which solution represents the better operating model, taking into account costs, service, flexibility, risk, expertise, manageability and future-proofing. For this assessment, we employ a tried-and-tested evaluation framework that allows internal and external operating models to be compared transparently against one another using standardised economic and qualitative criteria. Particularly when a direct comparison is not possible due to a lack of data or specific organisational circumstances, this approach enables us to establish a robust basis for decision-making.
Process: How transport and warehousing services are outsourced
1. Assessing the current situation and defining the target state
To begin with, we analyse the existing scope of logistics services, the organisational structure, the cost structure, the service requirements and the relevant locations or transport flows. This provides a robust picture of current strengths, weaknesses and the potential scope for outsourcing. If shipment data is only partially available within the company, we supplement the data set with information from the logistics service providers used and systematically consolidate this information. In addition, we analyse the invoicing data from the past twelve months using professional evaluation tools and AI-supported methods. This enables us to establish transparency regarding transport and warehousing services right from the start of the project, for example in the areas of CEP, general cargo, LTL/FTL, sea and air freight, inbound logistics, warehousing services, value-added services, customs services and pallet management.
2. Assessing ‘make-or-buy’ and cost-effectiveness
We then compare internal and external operating models in terms of costs, service, investment requirements, flexibility, risks and controllability. In doing so, we take into account both quantitative factors and qualitative requirements for future service delivery. Our experience from numerous tendering and outsourcing projects shows that potential can only be validly assessed through a structured market approach and robust comparative quotations.
3. Developing a Tendering and Award Strategy
Based on the target vision, we define scopes of work, service requirements, interfaces, handover points, governance and contractual framework. We then support the tendering process, the evaluation of bids and the selection of suitable transport and warehousing service providers. Through standardised tendering processes and our experience in procuring logistics services, we have been able to increase the number of tenders carried out by more than 30 per cent in comparable projects and achieve savings of over 20 per cent in first-time tenders.
4. Structuring implementation and transition
Once the contract has been awarded, we support the implementation of the target model. This includes implementation planning, interface design, transition management, site coordination, process adjustments and operational preparation for the go-live with the selected service provider. Clearly defined processes and responsibilities ensure that operational tasks, such as setting up new suppliers or converting purchase requisitions into purchase orders, can be carried out with an on-time delivery rate of over 98 per cent.
5. Ensuring stabilisation and performance management
Following the launch of the new operating model, we assist with monitoring performance, costs and service levels, as well as with the ongoing development of the partnership with the service provider. This ensures that the outsourcing decision delivers sustainable benefits.
Taking into account the transfer of undertakings and Section 613a of the German Civil Code (BGB) in the context of outsourcing
When outsourcing transport and warehousing services, depending on the specific arrangements, this may constitute a transfer of an undertaking or part of an undertaking. Section 613a of the German Civil Code (BGB) stipulates that, in such cases, the new owner assumes the rights and obligations arising from the employment relationships existing at the time of the transfer. Furthermore, the provision sets out requirements regarding the duty to inform the employees concerned and their right to object.
The law also stipulates that dismissals resulting from the transfer of a business or part of a business are invalid. For companies, this means that outsourcing decisions must be properly prepared and implemented not only from a logistical and economic perspective, but also in accordance with employment law.
Metroplan explicitly takes these requirements into account in its project approach. We structure the outsourcing process in such a way that operational, organisational and personnel implications are made transparent at an early stage and incorporated into the project planning. The legal assessment itself is carried out in close consultation with the client’s relevant employment law experts.
Why close coordination with the works council is crucial
In outsourcing projects involving a potential transfer of undertakings, early and close consultation with the relevant works council is a key factor for success. Whilst the works council’s consent to the transfer of undertakings is not required, there are rights to information and participation in the event of operational changes, which must be given due consideration throughout the course of the project.
Metroplan therefore attaches great importance to a transparent project structure, clear decision-making criteria and the orderly involvement of all relevant stakeholders. This includes, in particular, close coordination with the works council in order to address the implications, approach, timetable and transition scenarios in a structured manner.
The benefits for you: striking a balance between costs, service and implementation reliability
A structured approach to outsourcing logistics services lays the foundation for reorganising transport and warehousing operations in a cost-effective, scalable and service-oriented manner. Companies gain clarity on appropriate ‘make-or-buy’ scopes, establish a robust basis for awarding contracts, and can select external service providers on the basis of clear requirements. In doing so, they benefit from our experience gained from numerous procurement and outsourcing projects, tried-and-tested evaluation methods, and a robust data foundation for well-informed decisions.
At the same time, a clearly structured project approach increases the certainty of successful implementation. This is particularly true when, in addition to operational and contractual issues, personnel implications and a possible transfer of business under Section 613a of the German Civil Code (BGB) must also be taken into account.
Conclusion on the outsourcing of logistics services
Outsourcing logistics services is the right approach when companies wish to strategically reassess their transport and warehousing operations, outsource them cost-effectively and transition them securely into a viable target model. Metroplan supports you throughout this process, from the make-or-buy analysis through to tendering, contract award and implementation – whilst taking into account the operational, organisational and employment law frameworks.
FAQ: Outsourcing of Logistics Services
What does Metroplan mean by the outsourcing of logistics services?
Which services are typically the focus?
Typically, these include transport services, warehousing, cargo handling, order picking, value-added services and other location- or network-related logistics services.
What role does Section 613a of the German Civil Code (BGB) play?
Section 613a of the German Civil Code (BGB) applies where outsourcing constitutes a transfer of an undertaking or part of an undertaking. In such cases, specific provisions under employment law regarding the transfer, notification, the right to object and the continuation of employment relationships apply.
Does Metroplan also provide support with tendering and implementation?
Yes. Metroplan supports companies every step of the way, from analysis through to tendering and contract award, right through to the implementation and stabilisation of the new operating model.
Contact
Your contacts
Dr. Thomas Mielke
Managing Partner
Andree Siever
Senior Manager
