TITLE

The Outsourcing of Logistics Price Margins Most Important

PUB. DATE
May 2000
SOURCE
Logistics & Transport Focus;May2000, Vol. 2 Issue 4, p10
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
This article focuses on a study, conducted in 2000, of logistics purchasing trends among some 100 leading public and private companies in Great Britain which have recently outsourced their logistics. The study indicates that pressure on price margins is the most important factor in the decision to outsource. As well as investigating motivations, the study looked at tendering methods, issues influencing selection of the suppliers for the Invitation to Tender (ITT) and the criteria which affect the final choice of provider. The potential benefit of cost reduction through outsourcing was felt to apply, above all, to variable costs, although the benefit of reducing the fixed costs of asset ownership was also mentioned. The study looked into information sources influencing the ITT selection and found word of mouth was clearly the most significant.
ACCESSION #
11646579

 

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