Picking and Packing Cheaper than Employment

Wondering whether to employ or outsource for your picking and packing needs?

‘Pick and pack’ is a part of a complete supply chain management process that is commonly used in the retail distribution of goods. You can choose to handle it ‘in-house’ either managing it yourself or employing staff to do this for you; or outsource it to a specialist business, experienced in delivering this service.

So why would you outsource?

  • Delivery – getting your products sent out to your customers in a timely manner is obviously a very important part of the job.
  • Time – by freeing up your time, you can take control of the tasks that matter in driving your business forward, generating more sales and more profit.
  • Cost – it is more cost effective to subcontract this work out to a dedicated team than it would be to employ members of staff yourself. It is the cost saving aspect of this which we are going to focus on in this blog.

Smaller businesses who need to ship out products to customers may only need to do this two or three times a week, but will require a member of staff in the warehouse each day in case the orders come through. This means, if they do this in-house, they will have to pay for a member of staff five days a week and they may not have enough work to keep them busy, therefore costing you as the employer more in wages, tax, NI and sick/holiday leave than necessary.

However, if you were to choose to outsource this to a pick and pack company, they will only be charging you for the time they spend shipping out your products. This will ensure all your orders are sent out to the customer with a quick turnaround time, (which the customer will be impressed by and will pass on good feedback about your company) and as companies specialise in offering this service, you can relax knowing your products are being carefully selected, quality checked, appropriately packaged and the right, cost effective postage being used. They can also send out anything from a single item to multiple pallets of your stock.

© Sivatech. Tel: 01296 717 800

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