The outsourcing trend is continuing unabated, and not without good reason: fixed fleet or warehouse costs become variable logistics costs. There are no fleet problems (workshop and repairs). Payroll, absenteeism, etc., are no longer an issue, and capital can be used for production instead of vehicles or warehousing. This represents a potential saving of 10-30%.
There are some concerns, however: can a contractor/warehouse service provider do as good a job as the firm itself? How should communication be handled?
Generally speaking, outsourcing is always a very emotionally charged topic. The organisation has to be prepared for this, as outsourcing also involves organisational changes, which always give rise to fears.
There is no doubt that outsourcing is a way of remaining competitive, but it is also a process that has be thoroughly prepared for and handled with care.
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