LTP Logistics´modern, 11 000 square meter logistics centre is near the airport in Vantaa, Finland. The temperature-controlled warehouse has efficient picking and storage systems for food products.
Barona has a 100 employees at the logistics center as well as management. Barona´s own Service Manager is responsible for the center´s operations. The centre employs, for example, forklift operators, loaders and pickers.
Cooperation between LTP Logistics and Barona started in 2012. At first Barona delivered LTP seasonal employees. The food industry is highly seasonal and during national holidays the number of workers required can double or even triple.
In 2014, the night shift was outsourced to Barona, according to LTP´s CEO Matti Tuominen. A year later the entire personnel was outsourced to Barona so LTP Logistics could focus on developing their core business. Matti Tuominen admits it took him almost 6 months to make the final outsourcing decision.
It is mentally a big decision to no longer have our own personnel, even though we do have about 40 employees left in different positions. This is something about us entrepreneurs – we always have half a mind to do everything ourselves. We want to employ people. However we also have to focus our resources, particularly during such a high-growth phase. Matti Tuominen, LTP Logistics
After a year has passed Tuominen is pleased with his decision. He finds Barona to be an experienced and reliable partner.
It is not worthwhile for us to do ourselves that which Barona is an expert in. Barona can handle the personnel pool and recruitment. They have people to call. This also provides credibility for us, having such a large and capable partner. Matti Tuominen, LTP Logistics
Matti Tuominen praises Barona´s expertise for enabling discussion and creating new practices. According to Tuominen, one of the best and quintessential aspects of the co-operation is that LTP Logistics no longer compensates Barona for hours worked but for completed production. Concern over cost-effectiveness disappeared with the new performance-based model.
“Creating it took a lot of fine-tuning. We co-operated on the research and follow-up. Every movement was clocked. Now we know how many seconds it takes to pick a package of sausages and load it,”explains Tuominen.
“I sleep better at night knowing that the agreed hours will not be exceeded. Even if I see a hundred men working, I know what my costs are because the model is so transparent,” says Tuominen.
He does not have to think about the process. “We are in so deep now that this will be a long-term partnership,” laughs Tuominen. The model challenges both partners to develop operations further for even better results.
In the beginning, both LTP Logistics and Barona focused on making the outsourcing a success. Now the joint development group meets monthly to discuss development projects and employees´development requests.
According to Matti Tuominen, both companies have learned more about personnel resourcing during the process.
“The great challenge is managing high seasons. We have improved the collection of advance data from customers. Barona can also use what we have learned in their other operations,” Tuominen comments. There is no point in re-inventing the wheel. Good models and know-how are worth repeating.
One benefit from a long partnership are concrete improvements. For example, in 2016, an induction training video was made specifically for employees who lack strong Finnish-language skills. The video instructs what one should and should not do at work, and what stumbling blocks the work entails. According to Tuominen the training video is an investment in the future. Mistakes are costly.
“If, for example, the wrong goods end up in Kittilä, that leads to costs for us and for Barona. In the long run, investment into the video pays itself back as we get good pickers in return.”
Tuominen is glad that the leading people in the cooperation share a goal and a vision. “When this is clear, it is easy to be the client and be happy that everything works. This is a common phrase but it contains what is most important. On my summer vacation I don´t have to wonder and worry,” Tuominen sums up.
LTP Logistics is a temperature-controlled food products logistics company whose clientele consists of both big and small companies in the food industry. LTP Logistics offers order and delivery chain solutions to meet our clients´needs. The company offers picking, storage, shipping and delivery services.