In the first section of this article, physical distribution
management and the field of research are introduced. In
the second section an initial attempt is made to answer
the research question using logistical literature (books,
journals and conference proceedings). In section three,
after providing an overview of the main premises of TCE,
a simple model will be presented to help explain the
process of contracting out. The fourth, and last, section
contains a summary and discussion.