Logistics outsourcing determinants and performance management: A theoretical model.

Abstract

While the principal objective of outsourcing was to reduce costs, organizations are now using this process to focus, their financial and managerial resources, on value-creating activities and improving the logistics performance for the company adopting it. Based on this observation, the objective of this paper is to wonder about the decision of logistics outsourcing: what factors explain why a company will choose to outsource its logistics activity rather than maintaining it internally knowing that other companies show a cautious position compared to the idea of outsourcing? And what contributions does each company hope to receive in return for the decision to outsource its logistics?