This paper investigates key success factors in logistics outsourcing. A
model is used to illustrate outsourcing relationships and then applied
to three examples from the logistics sector. The model is presented as
a tool which can help managers to minimize the chance of failure by
explicitly addressing key issues prior to the implementation of a partnership.
In order to fully capture the complexity of the outsourcing
process, the model is refined by the analysis of implementation of outsourcing
methodology and the analysis of the presence of outsourcing
myths in each case. We find that the implementation of outsourcing
methodology is critical to successful outsourcing. Overall, we find that
the main common factors leading to logistics outsourcing success, after
the right third party service provider has been selected, are improved
service levels and commercial viability for both parties, joint vision and
objectives of the partnership, clear roles, topmanagement commitment
and support, communication and trust. The results of the case analysis
shed light on what is the key to a successful outsourcing relationship
and indicate how the architecture of logistics outsourcing can be analyzed
and improved.
Key Words: third-party logistics, outsourcing, transportation service,
service provider, partnership