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Essay / Research Paper Abstract
This 3 page paper presents a general discussion of the benefits of outsourcing logistics, including the major reasons and the specific benefits of doing so. Bibliography lists 3 sources.
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3 pages (~225 words per page)
File: MM12_PGlogou.RTF
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than on other aspects of business that take a great deal of time and energy (Apply Now, 2008). A good example related to a brand we all know is Nike
whose core competencies lie in designing shoes that appeal to a number of niche markets and also in marketing, in fact, their marketing is brilliant (Apply Now, 2008). By outsourcing
a great deal of logistics, the company is more efficient and more productive (Apply Now, 2008). Outsourcing saves money for companies by reducing direct costs and reducing the amount spent
on capital improvements (Apply Now, 2008). One of the major challenges all organizations face today - become more efficient. When supply chain management logistics are outsourced, the company does not
have to deal with the costs of maintaining a fleet of delivery trucks, as an example (Apply Now, 2008). Hannon (2008) said identified some of the benefits of outsourcing shipping
are "improved shipment visibility, transit time reduction, a more scaleable logistics cost model, and ability to leverage best of breed providers for different areas of logistics." They also do not
have to pay the taxes on property because a third party is responsible for that, which means that the costs for utilities, labor and everything else related to this chain
decrease (Apply Now, 2008). Warehousing and transportation are two of the most common outsourced logistics today. The International Warehouse Logistics Association (2008) gives the example of warehousing and writes that
"outsourcing reduces the need for costly real estate to hold inventory." This group points to many different advantages to outsourcing warehousing and the tasks that go with that, including reducing
the companys own risks, accessing expertise in supply chain inventory, reducing the companys total cost in shipping goods to customers and gaining the information about potential local markets (International Warehouse
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