Bowman said shippers are taking a new look at the value of logistics not because they know more about third-party providers, but because previous contracts have shed light on their own companies. Third-party firms can act as an agent of change in this situation. Twelve-Step Logistics Outsourcing is never an easy process, says George Swartz, Jr., senior manager of Andersen Consulting's logistics and supply chain management practice. Spend more time planning for and establishing expectations. Contract before you implement.
Pricing is important, but it is just one component of the total logistics expense.
Flawed measurement processes will leave you short of achieving your outsourcing goals. Make compensation incentive-based, simple and fair. Retain overall control. Outsourcing is not abdication of responsibility. Don't underestimate the need for managing transitions, including changes that occur long after implementation, such as turnover, upgrading technology, program expansion and contractions.