The Benefits and Drawbacks of Outsourced Warehousing

 

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Organizations have been outsourcing non-critical functions within the enterprise for years. Logistics activities such as warehousing and distribution are no exception. The question is: Does outsourcing the management of warehousing and distribution result in advantages when compared with keeping these functions in-house?

To find out, APQC compared the performance of organizations that have outsourced this to any degree against the performance of organizations that have not outsourced warehousing and distribution centers management at all.

This article originally appeared in the January/February 2016 issue of Supply Chain Management Review.

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