Integrating logistics into an outsourcing process

Paper in proceeding, 2007

Outsourcing of production is an important phenomenon and a complex process and several frameworks describing how to outsource are presented in the literature. Logistics factors are included in some of the existing frameworks but seldom focused upon. Instead, logistics factors are discussed in more general terms. The objective is to derive and apply a general outsourcing process and structure logistics factors related to this process. Empirical data have been collected through a multiple case study consisting of three cases from three Swedish production companies. The application of the general outsourcing process to the cases showed that all three companies followed a process similar to the one derived from literature. Logistics factors important to include in an outsourcing process are categorised into the following groups: chain structure, customer service, logistics costs, and supply and logistics terms.