Logistics is a part of supply chain process that involves material management and physical distribution processes. Logistics outsourcing is the process
of using the expertise of a third party in order to perform in-house logistics functions. The best example of logistics outsourcing can be seen in terms of EDI outsourcing that involves linking the supplier, logistic provider and the vendors together by an EDI system.
The management and maintenance of the EDI system is outsourced to offshore destinations that can result into flawless tracking and optimized transportation schedules.
Typically a logistics outsourcing involves three types of outsourcing arrangements as follows
Logistics processing and transaction services
Logistics business process outsourcing
asset based logistic services like rental, leasing etc
Most companies outsource their logistics functions in order to cut costs, get better service, focus on core competencies, make use of latest technologies and stay ahead in the competition. The current most favored destination to outsourcing logistics is India. There are many companies that offer logistics outsourcing services in India. In addition to logistics India also is the most favored destination for outsourcing companies sales and software development.
Outsourcing in India
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