Global Supply Chains: Factors Influencing Outsourcing of Logistics Functions

Explores the attitude of shippers and service providers towards outsourcing of logistics functions performed within large multinational,manufacturing companies engaged in global trade and presents a model describing the factors which influence the outsourcing decisions. Indicates that five key factors influence the outsourcing decision:centrality of the logistics functions to the firm′s core competency;risk liability and control; cost/service tradeoffs in operations;information and communications systems; and market relationships. Discusses several drivers, involving product, process and network complexities, which govern these factors.