Exploring the Trade-offs Between In-House vs. Outsourced Logistics Services for Cost and Performance Optimization

Authors: Haroon Rashid

DOI: https://doi.org/10.5281/zenodo.14280047

Short DOI: https://doi.org/g8ttfm

Country: Dubai, UAE

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Abstract: The in-house logistics services versus outsourcing to identify best practices for cost reduction and performance improvement. Logistics represent a very significant aspect of supply chain management, having a direct impact on operational efficiency and customer satisfaction. In managing logistics, companies are invariably faced with strategic choices either to operate it internally or in collaboration with third-party providers. Whereas in-house may be more controlling, flexible, and even offer better service quality, it usually requires a greater level of operational cost and resources. Outsourcing can save money through economies of scale, increase scalability, and offer access to specialized expertise, but also could result in dependency, diminished control, and uncertainty about the level of service. Other critical factors this research investigates include service quality, scalability, and strategic alignment, all in addition to cost. This will provide insights into how organizations balance these considerations in logistics management for optimal performance. Theoretical recommendations will be made to enable companies to make informed decisions based on their operational needs and prevailing market demands.

Keywords: In-house logistics, outsourced logistics, cost optimization, performance optimization, supply chain management, 3PL, service quality, operational efficiency, logistics strategy, scalability.

Paper Id: 231732

Published On: 2018-05-08

Published In: Volume 6, Issue 3, May-June 2018

Cite This: Exploring the Trade-offs Between In-House vs. Outsourced Logistics Services for Cost and Performance Optimization - Haroon Rashid - IJIRMPS Volume 6, Issue 3, May-June 2018. DOI 10.5281/zenodo.14280047

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