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Transportation Outsourcing: A Survey of US Practices

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 1 March 1991

Abstract

The majority of the companies surveyed are outsourcing some transportation functions. The most frequently outsourced transportation functions are freight bill auditing, freight payment and transportation reports, which are basically clerical/repetitive in nature. Also, frequently outsourced are international shipping and fleet maintenance, functions that require considerable technical expertise and assets. Transportation functions of a strategic nature are usually not outsourced. The primary reasons for outsourcing are labour cost savings, specialisation, asset reduction, and expanding workload. Generally, the firms that outsourced transportation are satisfied with the service. Loss of management control is the most important reason for not outsourcing, although loss of control was not identified as a major problem area for firms who do outsource. The providers of transportation outsourcing services are relatively small corporations.

Keywords

Citation

Bardi, E.J. and Tracey, M. (1991), "Transportation Outsourcing: A Survey of US Practices", International Journal of Physical Distribution & Logistics Management, Vol. 21 No. 3, pp. 15-21. https://doi.org/10.1108/09600039110134986

Publisher

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MCB UP Ltd

Copyright © 1991, MCB UP Limited