In the past five years, the third-party logistics industry has experienced exponential growth. Traditional third-party warehouses offer everything from contract warehousing to distribution services. Carriers provide flexible delivery solutions that reach far beyond the bounds of transport. Added to all that, specialized logistics firms have entered the marketplace, offering a dizzying range of logistics services and solutions for today's overworked logistics manager.
Logistics outsourcing, as previously mentioned, is often accompanied by a downsizing the internal logistics team (coined "dumbsizing" in some circles). A lot of heartache can be avoided by maintaining a knowledgeable core group to manage the outsourcing partner. This logistics core must remain or, at the end of the outsourcing contract, your company may not be able to analyze subsequent quotations. Moreover, unless this core is maintained, your firm may lose the internal capability to reverse an inadequate or obsolete outsourcing agreement without hiring a complete logistics staff.
In summary, the best way to ensure your logistics outsourcing initiative doesn't fail is to do your homework and avoid an insular perspective. If you've researched your current logistics spending, looked at what companies in similar industries have done, accurately estimated cost savings from outsourcing logistics, aligned your initiatives with corporate strategy, and obtained buy-in from top management at the highest levels and in every functional area (especially logistics), then you're well on your way to overcoming what is typically one of the biggest stumbling blocks to successful outsourcing--navigating the internal political landscape.