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Logistics Outsourcing: Change from a service-provider to a business partner and Leveraging partnership models to create sustainable bottomline

Wanchoo, Rajat (2010): Logistics Outsourcing: Change from a service-provider to a business partner and Leveraging partnership models to create sustainable bottomline.

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Abstract

A New model for „Partnership’ based Outsourcing:

The growing emphasis on efficiency and integration between customers (shippers) and third-party outsourcing firms, has given rise to a unique collaborative model of Logistics outsourcing.

Principle: “The focus on end-to-end supply chain effectiveness and optimization will lead to lower unit costs, which in turn will lead to lowest total costs”.

Instead of an inward-looking focus on ownership of hard assets and „do-myself‟ approach; we need to focus on total supply chain effectiveness and process optimization by utilizing the extended value-proposition of the „logistics partner‟.

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