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.
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/10.1108/09600039410066141Download as .RIS
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