Skip to content

Outsourcing Considerations

October 16, 2008

When outsourcing any activities or processes to 3PL and 4PL operators, there are a number of factors to consider.

  1. Expertise – Do they have the required expertise?
  2. Alignment – How aligned are they with our organizational goals and strategy?
  3. Culture – Do we anticipate any culture clash?
  4. Organizational Fit – How will the partnership work with our organization structure?
  5. Collaboration – Will it improve overall collaboration?
  6. Management – What do we know about their management?
  7. Partners – Are they working with strong supply chain partners?
  8. Visibility – Will it improve visibility in the supply chain?
  9. Cost – Do we understand cost to serve and total cost?
  10. Process impact – How aligned are our processes?
  11. Technology – What software are they using and will we have any integration challenges?
  12. Efficiency – Will it improve efficiency?
  13. Closeness – Will we get closer to our customers or end consumer?
  14. Flexibility – How flexible is their system?
  15. Implementation risk – How long will it take and what guarantees do we have?
  16. Barriers – What challenges will we encounter?
  17. Regulations – Are there any regulatory issues we need to be aware of?
  18. Safety – What is their safety record?
  19. Financial – How financially stable are they?
  20. Quality – Will we maintain or improve quality standards?
  21. Trust – Do we trust them?
Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: