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Supply Chain Strategy, Second Edition: Unleash the Power of Business Integration to Maximize Financial, Service, and Operations Performance, 2nd Edition by Edward H. Frazelle

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CHAPTER 8

RightSourceSupply Chain Outsourcing Strategy

“Blessings on all who play fair and square.”

—SOLOMON

Several years ago we were asked by one of the world’s largest retailers to review a third-party logistics contract that was in the works leading to the complete outsourcing of their national network of distribution centers. At the time it would have been one of the world’s largest retail supply chain outsourcing initiatives. The document was the most convoluted and confusing supply chain outsourcing contract I have read in my 25-plus years in the field. I literally red inked every other sentence.

The day came to review the contract with their supply chain team. Their chief supply chain officer sat at one end of their boardroom table, ...

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