Choosing the right sourcing model for thirdparty logistics outsourcing agreements

Kate Vitasek and Andrew Downard
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Kate Vitasek: University of Tennessee, USA
Andrew Downard: Collaborative Impact Advisory, Australia

Journal of Supply Chain Management, Logistics and Procurement, 2024, vol. 7, issue 1, 47-58

Abstract: Modern outsourcing is more than a typical make–buy decision. Rather, there is a wide range of sourcing business models that today’s practitioners can choose from. Unfortunately, the fundamental nature of how goods and services are procured is not keeping pace with best practices of tapping into more mature sourcing business models; many business professionals wrongly assume that a transaction-based business model is the only way to architect a supplier contract. This paper provides an easy-to-understand framework for classifying the various contracting approaches along a sourcing continuum. A key goal of the paper is to help organisations understand the various models and see examples of how they are used in practice.

Keywords: sourcing; sourcing business models; logistics service provider (LSP); third-party logistics (3PL); supply chain management (SCM); outsourcing; Vested outsourcing; performance-based contracts (search for similar items in EconPapers)
JEL-codes: L23 M11 (search for similar items in EconPapers)
Date: 2024
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