Guide to Outsourcing in Supply Chain Management

Abstract

This chapter guides you through the topic of outsourcing in supply chain management. This chapter is structured as follows; first it considers the breadth, growth drivers and common reasons and concerns for outsourcing. Second, it will then define the tendering activities; where a nine-step process is highlighted. Third, it explains how service can be improved through better third party logistics management and the evolving future of outsourcing in the business world. This chapter will conclude with an overview on outsourcing trends.

Having read this chapter you will be able to:

• Demonstrate good practice of distribution outsourcing and the associated tendering process

• Assess operations in your company and decide whether outsourcing presents a viable option

• Recognise how improved service can be reached in your existing outsourcing relationships through better third party logistics management