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The Handbook of Logistics and Distribution Management, 5th Edition by Dr. Peter Baker, Phil Croucher, Alan Rushton

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34

Outsourcing: the selection process

Introduction

It was noted in the previous chapter that probably the most important channel decision for those operating in distribution and logistics is whether to use an own-account (in-house) operation or whether to outsource to a third-party logistics (3PL) service. Having made the decision to outsource, this is by no means the end of the story, as it becomes equally important to take great care in both the selection and the management of the service provider. This chapter describes an approach for the selection of service providers and explains the detailed steps that are required from the initial scoping of outsourcing requirements through to the final negotiation and contract agreement. In addition, ...

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