Onsite logistics plays a vital role in keeping your day-to-day operations running. It’s the link between goods arriving at your facility and products leaving in a customer-ready state. But as business needs evolve, managing these internal flows in-house can become increasingly complex – and costly. 

That’s why many companies turn to logistics outsourcing. In handing over onsite logistics to an experienced 3PL provider, businesses can reduce operational risk, streamline processes, and focus on their core strengths. But outsourcing doesn’t mean switching overnight – a smooth transfer requires planning, alignment, and a structured approach. 

This guide walks through the five key steps that help businesses move from in-house operations to outsourced onsite logistics – safely, efficiently, and with long-term performance in mind. 

Step 1: Assess the Complexity of Your Onsite Operations 

Onsite logistics covers all the movement, management, and preparation of goods within your facility. That includes: 

• Receiving inbound materials and stock
• Internal transport, handling, and storage
• Inventory control and order preparation 
• Final dispatch and integration with outbound freight

As your business grows, these activities can become harder to manage. Manual handling may introduce errors, siloed teams may slow things down, and space constraints can affect service levels. Signs it may be time to consider outsourcing onsite logistics include: 

• Frequent errors in picking or fulfilment
• Labour shortages or rising staffing costs
• Limited space or inventory visibility
• High variability in process performance
• Inability to scale to meet new supply chain demand

Outsourcing helps address these challenges by introducing specialist logistics services, better coordination, and access to technologies like warehouse automation and real-time tracking. 

Step 2: Engage the Right Stakeholders Early 

Outsourcing onsite logistics affects multiple teams, from warehouse staff to finance, procurement, and supply chain leadership. For the handover to succeed, all key stakeholders need to be aligned from the start. Key groups to engage include: 

• Operations managers who understand existing site workflows and challenges
• Supply chain leaders responsible for performance, cost, and customer impact
• IT and systems experts who can support technology integration
• Your chosen 3PL provider who brings knowledge of logistics outsourcing and contract logistics strategy
• HR
• Transition management / project / programme management  

Early engagement allows you to map risks, identify improvement areas, and set realistic timelines. It also helps address concerns around change – particularly for on-site teams directly affected by new processes or systems. 

Strong internal communication and clear ownership of the transition plan go a long way in ensuring a smooth, collaborative process. 

Step 3: Design the Transition with Technology and Integration in Mind 

Technology is central to any successful logistics outsourcing initiative. A well-planned transition ensures that digital systems, warehouse automation tools, and visibility platforms are in place from the start. Areas to focus on include: 

• Warehouse automation – Introducing automated systems to improve speed, reduce errors, and optimise space
• Logistics technology platforms – Real-time data, dashboards, and tracking tools to monitor stock, orders, and performance
• Carrier technology – Integration with outbound freight management systems to ensure seamless dispatch and delivery
• System compatibility – Ensuring your ERP, inventory, or order management tools connect with your 3PL provider’s systems

This stage is about building a digital foundation that enhances visibility, supports smarter decisions, and helps both sides respond faster to operational issues. 

Where possible, align on shared KPIs, data formats, and reporting structures early – so handover doesn't lead to information gaps or duplicated efforts. 

Step 4: Execute the Handover in Phases

A full-site transfer of onsite logistics is rarely achieved in a single step. The most effective approach is a phased handover – one that protects day-to-day performance while allowing for process refinement and knowledge transfer. Break the transition into manageable parts: 

• By department or operational zone
• By product category or workflow type
• By timeline – introducing services gradually over several weeks or months

Each phase should include: 

• Detailed process mapping to define current vs. future-state operations
• Shadowing and training so your 3PL provider’s teams understand site-specific needs
• Performance testing using key metrics like fulfilment speed, picking accuracy, and stock availability
• Real-time feedback loops so small issues can be addressed before they become system-wide 

This incremental approach allows both internal teams and your 3PL partner to adapt smoothly, avoiding disruption and maintaining continuity for your wider supply chain management processes. 

Step 5: Build in Continuous Improvement from Day One 

Rather than being a one-time handover, outsourcing is the start of an ongoing relationship. A strong 3PL provider will continue to monitor, evaluate, and enhance onsite logistics performance as your business evolves. 
Focus areas for long-term improvement include: 

• Operational metrics – Regular reviews of KPIs like inventory accuracy, order turnaround, and storage utilisation
• Technology upgrades – Introducing smarter workflows, additional automation, or AI-powered tools as needed
• Cost optimisation – Identifying areas for savings through leaner processes, space efficiency, or smarter freight management
• Collaboration – Holding quarterly business reviews, joint planning sessions, and shared improvement roadmaps
• Sustainability tracking – Aligning logistics outsourcing with environmental targets such as energy reduction or emissions reporting

Continuous improvement helps ensure your onsite logistics become a source of competitive advantage. 

A Stronger Supply Chain Starts Onsite 

Outsourcing onsite logistics is a strategic step that can unlock efficiency, visibility, and resilience across your entire operation. But to succeed, the transition must be managed carefully, with collaboration, technology, and long-term thinking at its core. 

In following a structured process – from assessment and stakeholder alignment through to phased handover and continuous improvement – businesses can make logistics outsourcing a driver of growth rather than a source of disruption. 

The result? Smarter onsite operations, integrated supply chain management, and greater flexibility to meet the challenges of tomorrow. Get in touch to learn more about XPO’s support