Warehouse and packing outsourcing means handing over a whole area to a contractor: packing, order picking or cleaning. The contractor brings in the people, manages them itself through its own supervisor and is responsible for the result against the KPIs set in the contract. You accept the finished work and pay for it, not for the hours of individual people.
What is outsourced and how it differs from staff leasing
The areas most often handed over are those with repetitive work and a result that is easy to measure:
- packing, repacking, labelling;
- order picking (kompletacja);
- sorting and returns processing;
- cleaning of warehouse or production premises.
In staff leasing your foreman manages the people, and the agency only employs them and handles the paperwork (we explain the mechanics in our article how staff leasing works). In outsourcing your foreman deals only with the contractor’s supervisor: passing on the plan, the standards and any feedback, while allocating people and tasks is the contractor’s job.
When outsourcing an area pays off
- volumes fluctuate strongly with the seasons, and keeping a full headcount all year round is expensive;
- your foremen are busy with hiring, rotas and cover instead of the process;
- the area can be clearly separated: it is clear what goes in, what comes out and how to calculate the productivity standard;
- staff turnover is high, and HR is constantly looking for people for the same job.
Outsourcing works poorly when the process changes every week, there is no standard for the operations, or the area depends on the know-how of one or two of your people. To hand over a result, you first have to define it.
Pricing models: pros and cons
| Model | How it is calculated | Pros | Cons |
|---|---|---|---|
| Hourly, per area | hours the area operates at an hourly rate | easy to launch, convenient for a pilot | the productivity risk is yours; without volume and KPIs it resembles paying for people |
| Per unit | item, order, order line or carton | you pay for the result, the contractor has an interest in speed | requires accurate data from the warehouse management system (WMS) and a clear definition of the unit |
| Per pallet | pallet received, picked or dispatched | convenient for goods-in and dispatch | pallets differ in complexity, categories are needed |
| Fixed plus variable | a fee for keeping the area ready plus a rate per volume | stability for both sides when volumes fluctuate seasonally | harder to agree and monitor |
Any model can include a bonus or penalty linked to KPIs: picking accuracy, on-time dispatch, damage. A well-founded rate can only be quoted after a process audit, because it depends on productivity standards, shift patterns, peaks and whose equipment is used.
Who is responsible for KPIs, quality and BHP
KPIs and quality are the contractor’s responsibility, because it manages the people and the organisation of the work. What is needed from you is a volume forecast, packing standards and access to the data used to calculate the KPIs. Typical KPIs for an area: units per hour, picking accuracy, on-time dispatch, damage, shift fill rate.
BHP (health and safety): each employer is responsible for its own workers, so the contractor is responsible for training and protective equipment for the people in the area. Who physically hands out workwear and PPE on site is worth setting out in the contract. When your people and the contractor’s people work in the same place, art. 208 Kodeksu pracy (Labour Code) requires the employers to:
- cooperate with each other;
- appoint a coordinator to oversee the BHP of all workers in that place;
- agree on a procedure in the event of a threat to health or life;
- keep each other and the workers informed about preventing occupational risks.
The coordinator does not relieve each employer of responsibility for its own workers. The company on whose premises people from different employers work also passes on information about the hazards on site to those employers.
How to launch: from audit to business as usual
- Process audit. Volumes by day and season, current productivity and error rate, equipment, floor space, standards. This is the baseline against which the result is later compared.
- Area boundaries and pricing model. Where the area starts and ends, who supplies materials, who is responsible for the equipment.
- Contract with SLA and KPIs. Target figures, measurement method, data source, bonuses and penalties.
- Pilot. One shift or one flow for a limited period, to test the productivity standards and the rate on real data.
- Onboarding. BHP training, induction in the area, system access, a daily report from the supervisor and a single communication channel.
- Regular review. Weekly at the start, then monthly: KPIs, issues, volume forecast.
What to agree in the contract: a checklist
- scope and boundaries of the area: what is included and what is not;
- volume forecast and notice period for peaks;
- pricing model, definition of the unit and how it is counted;
- KPIs and SLA, data source and reconciliation procedure;
- acceptance of the result and complaints;
- managing the people: instructions only through the contractor’s supervisor;
- BHP: coordinator, training, protective equipment, procedure in case of accidents;
- equipment and materials: who owns them and who is liable for damage;
- minimum headcount per shift and cover for absences;
- confidentiality and access to your systems;
- length of the pilot, conditions for changing the rate and for terminating the contract.
What makes outsourcing an area lawful
Lawful process outsourcing is where the contractor is responsible for the whole service and is paid for the result rather than for supplying people. That is exactly how the Ministry of Family, Labour and Social Policy describes it when explaining that the new rules on foreigners do not restrict such outsourcing (the ministry’s answers on the website of the Rzecznik MŚP, the Polish SME Ombudsman).
If the “contractor” merely supplies people whom you manage, and some of them are foreigners, since 1 June 2025 this has carried the risk of refused documents and fines for both sides. More detail in our article outsourcing vs staff leasing.
In practice, lawfulness depends on day-to-day details: your foremen do not give instructions directly to the contractor’s people, the contractor’s supervisor is always present in the area, and the invoice reflects the volume or the running of the area against the KPIs.
Common mistakes
- paying per head without volumes or KPIs;
- letting your foreman manage the contractor’s people directly;
- starting without measured baseline figures;
- failing to define the boundaries of the area: who collects rejects, who brings in materials;
- forgetting about BHP coordination on a shared site;
- launching the area straight into peak season without a pilot.
How STARKO helps
In outsourcing, STARKO takes over a whole area (packing, order picking, cleaning): our supervisor manages the people, and you accept the finished result. We have our own hostels and flats close to the site, our own transport with drivers, supervisors and coordinators, and we replace a worker who turns out not to be a good fit free of charge. Tell us about your area, and a manager will get back to you within one working day.
Frequently asked questions
How much does packing outsourcing cost?
The price depends on volumes, productivity standards, shift patterns, seasonal peaks and the pricing model: per hour the area operates, per unit, per pallet, or a fixed fee plus a variable element. A well-founded rate can be quoted after a process audit and tested in a pilot.
Who is responsible for picking errors when the work is outsourced?
The contractor, because it manages the people and the process – but within the limits set in the contract: the acceptable error rate, how errors are counted and what happens if the rate is exceeded. That is why the KPIs and the data source must be agreed before the start.
Who is responsible for BHP if the contractor’s people work in the warehouse?
Each employer is responsible for the BHP of its own workers. If people from different employers work in one place, the employers must cooperate, appoint a BHP coordinator and agree on what to do in the event of hazards (art. 208 Kodeksu pracy).
How does warehouse outsourcing differ from staff leasing?
In staff leasing your foreman manages the people, and the agency only employs them and handles the paperwork. In outsourcing the area is run by the contractor’s supervisor, and you receive the result and a report from them.
Can only part of a warehouse be outsourced?
Yes, usually a clearly separate area with a measurable result is handed over, such as packing, order picking or cleaning. The clearer the boundaries of the area, the easier it is to calculate the KPIs and the price.