Not long ago, it was standard practice for even a small retail business to operate its own warehouse, employ warehouse staff, and handle order packing and shipping in-house. Today, however, businesses no longer need to invest in their own warehouse or the infrastructure that comes with it. Instead, they can outsource some or all of their logistics operations to a trusted logistics partner.
Contract logistics offers businesses the opportunity to hand over the entire order fulfillment process – from receiving goods, warehousing, and inventory management to order picking, packing, and final delivery to customers. Since every business has different needs, these services can also include value-added solutions such as custom labeling, personalized packaging, sticker application, product kitting, or other specialized preparation services.
This allows businesses to focus on what they do best: developing products, serving customers, and growing sales.
According to Gytautas Skučas, Contract Logistics manager at the international parcel delivery and logistics company SmartPosti, this flexibility has become one of the key competitive advantages for small and medium-sized businesses.
"Many small and medium-sized businesses face the same challenge: order volumes fluctuate significantly throughout the year. During peak seasons, volumes can be very high, while at other times they drop considerably. In quieter periods, maintaining your own warehouse, warehouse staff, and the necessary infrastructure often simply isn't cost-effective. We enable businesses to use logistics capacity only when they actually need it," says G. Skučas.
He notes that this is particularly relevant for e-commerce businesses, seasonal companies, and fast-growing enterprises that are reluctant to invest in additional warehouse space, staff, or systems whose utilization may vary greatly throughout the year.
"When order volumes increase, logistics capacity scales up accordingly. When demand slows down, businesses can manage their logistics costs much more flexibly. This helps avoid situations where a company-owned warehouse sits half empty for part of the year while employees remain underutilized," explains G. Skučas.
More Than Just Warehousing
Contract logistics involves far more than simply storing products in a partner's warehouse. SmartPosti can manage the entire logistics chain – from receiving and storing products to picking, packing, and delivering orders to customers.
Each business can choose either a comprehensive logistics solution or only the services that meet its current needs.
The company Mano mantra began working with SmartPosti as its business and partner network expanded. As the company grew, ensuring that both individual customer orders and partner orders with different requirements were fulfilled accurately and on time became increasingly important.
"As our business and network of partners expanded, our logistics processes became much more complex. We work with a variety of partners, each with different requirements – from custom packaging and special labels to specific order preparation rules. Our biggest challenge was ensuring that both large partner orders and individual customer orders were prepared quickly and accurately according to all these requirements," says Marina Čerepanova, CEO of Mano mantra.
Mano mantra entrusted SmartPosti with its entire logistics chain, including warehousing, order picking, packing, and delivery. Today, the company's products are stored in SmartPosti's warehouse, while SmartPosti's logistics team manages daily order fulfillment.
According to Marina Čerepanova, this solution has made logistics management more transparent while significantly reducing the workload of the company's internal team. Tasks such as receiving goods, unloading shipments, picking orders, and packing products are now handled by logistics professionals, allowing the company to focus more on business development and customer service.
"It is essential for us that orders are fulfilled accurately and that the varying requirements of our partners are handled reliably. Working with SmartPosti has transformed order picking, packing, and fulfillment into a clearly managed process. It gives us greater confidence when planning our operations and allows us to dedicate more attention to our customers and business growth," she says.
According to Čerepanova, one of the greatest benefits is the peace of mind that comes from knowing daily logistics operations are handled consistently and professionally.
"The biggest advantage is reliable and fast order fulfillment. Throughout our cooperation, we have not received any negative customer feedback regarding packaging or incorrectly fulfilled orders. That gives us confidence and allows us to feel reassured about our logistics processes," says the Mano mantra representative.
A Partnership Built on Trust
Gytautas Skučas emphasizes that logistics today is no longer just about transporting parcels from one point to another. Contract logistics is based on long-term partnerships, where the logistics provider adapts to the specific needs of each business, helps manage growing volumes, and continuously seeks more efficient solutions.
"This is a business built on trust. Companies entrust us with their products – and, in many ways, with part of their customer experience. Our responsibility extends beyond delivering parcels on time. We must ensure quality, accuracy, and reliability at every stage of the logistics process," says G. Skučas.
According to him, this approach is changing the traditional perception of how small and growing businesses can operate. Comprehensive logistics support gives companies greater flexibility and allows smaller businesses to access solutions that were once available only to large market players.
"In the past, efficient logistics was one of the biggest competitive advantages enjoyed by large companies. Today, even smaller businesses can benefit from high-quality warehousing, advanced warehouse management systems, and fast delivery without making substantial upfront investments in their own infrastructure. Instead of investing in warehouse facilities, equipment, or additional personnel, businesses can direct those resources toward product development, marketing, and growth," concludes G. Skučas.
