Logistics outsourcing during hard times: a contemporary issue

Citation

Rogers, K. (2010), "Logistics outsourcing during hard times: a contemporary issue", Strategic Direction, Vol. 26 No. 6. https://doi.org/10.1108/sd.2010.05626fad.005

Logistics outsourcing during hard times: a contemporary issue

Article Type: Abstracts From: Strategic Direction, Volume 26, Issue 6

Rogers K.Logistics & Transport Focus (UK), September 2009, Vol. 11 No. 9, Start page: 24, No. of pages: 4

Purpose – To explore the question of whether or not to outsource logistics services at times of economic recession. Design/methodology/approach – Emphasizes the importance of making absolutely sure that logistics cannot be carried out in-house before outsourcing, employing a cost-effective purchasing policy - particularly with regard to fuel. Considers reasons for outsourcing or changing supplier associated with the flexibility of a third party to respond to changing business circumstances; the need to review current outsourcing arrangements; changing supplier if appropriate; solutions being tailored to meet changing needs; provision of a specialist back-up on the client’s behalf on ongoing basis. Makes the point that it is important to understand how the new provider is able to deliver a service at a reduced cost; to visit real operations and talking to operational personnel; to research the provider’s financial situation; and not to enter long-term contracts that are not flexible; and ask what the supplier’s customers think about the service. Originality/value – Addresses factors to take into account when reaching a decision regarding the outsourcing of logistics services during times of economic uncertainty.Article type: General reviewISSN: 1466-836XReference: 39AC303

Keywords: Distribution management, Outsourcing, Recession