Logistics Outsourcing: Lessons from Case Studies

This paper investigates key success factors in logistics outsourcing. Amodel is used to illustrate outsourcing relationships and then appliedto three examples from the logistics sector. The model is presented asa tool which can help managers to minimize the chance of failure byexplicitly addressing key issues prior to the implementation of a partnership.In order to fully capture the complexity of the outsourcingprocess, the model is refined by the analysis of implementation of outsourcingmethodology and the analysis of the presence of outsourcingmyths in each case. We find that the implementation of outsourcingmethodology is critical to successful outsourcing. Overall, we find thatthe main common factors leading to logistics outsourcing success, afterthe right third party service provider has been selected, are improvedservice levels and commercial viability for both parties, joint vision andobjectives of the partnership, clear roles, top management commitmentand support, communication and trust. The results of the case analysisshed light on what is the key to a successful outsourcing relationshipand indicate how the architecture of logistics outsourcing can be analyzedand improved.