A FRAMEWORK FOR LOGISTICS OUTSOURCING

Sanjay Jharkharia ()
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Sanjay Jharkharia: Indian Institute of Management Kozhikode

No 51, Working papers from Indian Institute of Management Kozhikode

Abstract: This paper presents a conceptual framework for the logistics outsourcing. As the logistics providers (3PL) are now offering a lot of value-added activities, some relevant criteria have been identified for the outsourcing of logistics activities to a 3PL company. Based on these, a nine-step conceptual framework has been proposed for the selection of a logistics service provider. This framework not only supports group decision-making but also enables us to document the various considerations in the process of decision-making. While investing in a long-term logistics-outsourcing contract that may potentially reach in millions of dollars, a structured analysis, which is provided by this framework, may help to reduce the risk of poor investment decisions.

Pages: 2 pages
Date: 2009
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