Logistics outsourcing is an essential strategy for the dynamism of the food industry, allowing manufacturers, distributors, supermarkets, etc. to optimize their operations and focus on the company’s core business.
By entrusting these activities to specialists, companies can focus on developing their products and customer service, while taking advantage of the efficiency and expertise of partners dedicated to inventory management, transportation and delivery.
This article explores the benefits of outsourced logistics and thus, offers insights into how this approach can boost growth, improve profitability and ensure quality in the food industry. Check it out!
What is logistics outsourcing and how does it work?
Logistics outsourcing is the practice of hiring services from a company specializing in storage, transport and distribution.
Organizations from different sectors opt for this strategy in order to focus on their core competencies, while the hired company, known as a logistics operator or 3PL (third-party logistics), is responsible for operations.
The process begins with a partnership established via a contract that defines the scope of the services to be provided and the expected service levels, or SLA (service level agreement). The logistics operator then manages aspects such as stock management, packaging, transportation and the delivery of products to the company’s customers, which can be either companies or end consumers. The scope of services can often include product import and export processes.
What are the advantages of outsourcing logistics in the food industry ?
In the food industry, logistics efficiency and effectiveness are fundamental to the success of the business. Choosing to outsource logistics processes has a number of benefits that contribute to the company’s good performance and growth in this sector.
Below, we have some of the main advantages:
Reducing costs
Food companies that outsource logistics often see a significant reduction in costs. This is possible due to the savings in scale that logistics companies offer, eliminating the need to invest in their own fleet, warehouses and management systems.
Quality in operations
Specialized logistics operators have optimized processes and adhere to strict regulatory standards, which ensures that food products are handled properly, maintaining quality and compliance with food safety standards.
Strategic management
Outsourcing also allows food companies to concentrate on their core business, while the logistics operator deals with the complexity of the supply chain management, including demand planning and stock replenishment.
State-of-the-art technology
Logistics operators (3PLs) typically invest heavily in technology, which provides complete visibility of the supply chain, as well as allowing for real-time tracking of products, which is essential for perishable items.
It is common for 3PLs to seek to establish links between the company’s systems and the WMS (Warehouse management system), in order to optimize communication between the systems, improving inventory visibility and the transparency of the operation.
Trained staff
Investing in logistics outsourcing also gives you access to a team with expertise in the food industry, ensuring that the professionals assigned to handle the products have the knowledge and skills required for effective and compliant operations.
Improved delivery efficiency
The expertise of the logistics operator results in an optimized delivery system, capable of reducing deadlines and adapting quickly to changing demands, while maintaining the integrity and punctuality of food distribution.
Inventory management
When dealing with food, strict control of shelf life and control of product rotation within the warehouse are essential. To do so, by using systems such as WMS, we can control inventory, usually by FEFO (first expire, first out), i.e. the first product that expires must be the first to be shipped out.
Another major challenge for companies is maintaining product traceability. 3PLs specializing in food are usually able to conduct food recalls because their computerized systems, together with the application of good practices, are able to track the destination of products.
Food Safety and Quality Management Systems
We can’t stress enough that food safety is paramount. An experienced logistics company will implement strict safety procedures to ensure that food products are always protected, minimizing the risk of contamination or damage during transport and storage.
One of the best practices, for example, is the implementation of the HACCP (Hazard Analysis and Critical Control Point) system, which is a protocol focused on prevention and food safety. This system aims to identify, verify and control possible risks throughout the food production chain, whether physical, chemical and/or biological risks. Serious companies committed to food safety follow this protocol to the letter. Here at Emergent Cold LatAm, for example, we have certified professionals who guarantee the quality of all logistics processes.
Another point worth highlighting regarding food safety are the certifications for warehouse plants, such as HACCP, SQF (Safe quality food), ISO 22000, BRCGS (British Retail Consortium Global Standards), IFS Logistics (International Featured Standards), FSMA (Food Safety Modernization Act) and GMP (Good Manufacturing Practices).
These certifications help ensure that cold chain warehouses operate according to international safety and quality standards, protecting both consumers and companies in the supply chain.
Given that it is common for food destined for export to undergo stricter logistical process controls, many countries certify the processes of processing plants and their logistical operators, ensuring that the products have undergone strict controls.
Cold Chain Control
When it comes to perishable foods, temperature and humidity control from the moment of production to the consumer’s table is essential to guarantee the quality and organoleptic properties (i.e. those that can be perceived by the human senses, such as color, smell, texture and taste) of the food. To this end, it is essential to monitor these factors during all stages of the process, which we call the cold chain.
In this sense, a major challenge is the adequate infrastructure for the full operation of the process, such as refrigerated antechambers for receiving and dispatching products, as well as chambers with the appropriate temperature as indicated by the manufacturer.
Learn about our solutions for the food cold chain
We are specialists in refrigerated storage and transportation, with the most complete logistics network in the region.
With the most robust and extensive temperature-controlled storage infrastructure in Latin America, we are able to simplify the complexities of the logistics process and thus, help speed up the flow of goods and reduce bureaucratic obstacles.
Moreover, we have expertise in the specifics of transportation in large territories and therefore, guarantee the efficient and safe delivery of products, even over long distances and under demanding logistical conditions.
When it comes to food safety, we ensure that all procedures comply with the strictest regulations and use the best industry practices.
Our experience in protecting your product throughout the cold chain for food makes us a standout choice in Latin America.
