1.2.7. Outsourcing of logistics activities
The need for outsourcing
Efficient logistic activities are indispensable to effective business operations. Therefore,
companies that perform these necessary functions exceptionally well are, in multiple ways, adding
genuine value to the business operations.
Globalisation drives a higher level of complexity in the logistics supply network, highlighting the
important role of distribution and transportation to enhance market value of products. The importance
of distribution and transportation in maintaining a company’s sustainable, competitive advantage
further increases the sophistication of distribution and transportation operations.
As companies seek to concentrate on their core competencies, logistics activities are now being
outsourced increasingly to specialist providers.
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