Logistics Outsourcing

Outsourcing needs a stable decision basis

Many companies regard an outsourcing of logistics functions as a promising way to reduce costs, increase efficiency and to strengthen the core business. This is quite correct. However, an outsourcing project is a decision with far-reaching implications, which is only successful if there is full transparency regarding running processes, requirements and expectations. This transparency is an important foundation on side of the principal just like on side of the service provider.

The Fraunhofer IML supports issuing enterprises as well as logistics service providers in the tendering phase as a neutral consultant. We deliver support in the first process analysis, the creation of tender documents and quotation up until the realization of the outsourcing project and a stable operation.

Outsourcing or optimization of processes and structures?

Companies who consider an outsourcing of logistics services should generally first ask themselves if outsourcing is the right measure. A process analysis and inventory analysis often shows that the targeted cost reductions and efficiency potentials can also be realized through an improvement of existing processes and structures.

Once the decision has been taken to outsource logistics functions, a logistics service provider takes the responsibility to operate vital business functions for his party. Prerequisite for an efficient relationship is mutual trust which should be established early in the tendering phase especially in the partner selection process. The identification of the best contract party is very important for both sides – the issuing company and the offering logistics service provider.

The success of a tendering process is strongly related to the quality of the tender on the one hand, as well as the quality of the bid on the other hand. The clear specification of processes relevant for the outsourcing as well as the requirements and expectations is essential for the creation of specified and high-quality bids and the creation of sophisticated calculation. Last but not least this is the foundation for a smooth collaboration.

 

"In many cases it makes sense to get help from consultants. A decision for or against outsourcing has tremendous scope. I believe, many companies do not have sufficient own resources to prepare, evaluate and plan such a difficult decision. A second tip: You cannot force an outsourcing."

– Dr. Hugo Fiege,
   FIEGE Group