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Global Supply Chains: Factors Influencing Outsourcing of Logistics Functions

Kant Rao (Professor of Business Logistics, Pennsylvania State University, Pennsylvania, USA)
Richard R. Young (Adjunct Assistant Professor of Continuing Education, Pennsylvania State University, Pennsylvania, USA)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 1 August 1994

Abstract

Explores the attitude of shippers and service providers towards outsourcing of logistics functions performed within large multinational, manufacturing companies engaged in global trade and presents a model describing the factors which influence the outsourcing decisions. Indicates that five key factors influence the outsourcing decision: centrality of the logistics functions to the firm′s core competency; risk liability and control; cost/service tradeoffs in operations; information and communications systems; and market relationships. Discusses several drivers, involving product, process and network complexities, which govern these factors.

Keywords

Citation

Rao, K. and Young, R.R. (1994), "Global Supply Chains: Factors Influencing Outsourcing of Logistics Functions", International Journal of Physical Distribution & Logistics Management, Vol. 24 No. 6, pp. 11-19. https://doi.org/10.1108/09600039410066141

Publisher

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MCB UP Ltd

Copyright © 1994, MCB UP Limited