Relationship Between Logistics Service's Perceived Value and Outsourcing of Logistics Activities

Klavdij Logožar

Bruno Završnik

Damjana Jerman

Abstract

Outsourcing has become increasingly popular in recentyears, and is often quoted as a means of coping with rapidchanges in technology and in the business environment. Thescope of third -party logistics may range from a relatively limitedcombination of activities (e. g. transportation and warehousing)to a comprehensive set of logistics services. The authorsfirst define the reasons for outsourcing with the emphasis onbusiness logistics. They particularly point out the motivationsfor logistics outsourcing, the possibilities of logistics outsourcing,and they present the process of outsourcing partner selectionas well. Finally, they analyze the specific issues of logisticsservice's perceived value in outsourcing logistics activities onthe basis of the survey carried out in Slovenian companies. Thepurpose of the survey was to measure the customers' perceptionof different characteristics of logistics provider which can be decisivewhen manufacturing firms are trying to make a decisionwhether to outsource and which logistics provider to select. Thepaper creates a framework for the selection of the importantand perceived characteristics of logistics provider relevant tocustomer in the process of the logistics supplier selection.