Report Reveals Reasons to Carefully Evaluate LSPs before Outsourcing

RALEIGH, NC (PRWEB) August 16, 2012

Not all Logistics Service Providers (LSPs) do the same thing, and not all do the same things well, a new report from Tompkins Supply Chain Consortium affirms.

LSPs tend to take on the characteristics of the industries they serve, says Chris Ferrell, Director, Tompkins Supply Chain Consortium. And in turn, this impacts the way they run their business and how they serve their customers.

The report, Selecting a Logistics Service Provider: Its Not One Size Fits All, analyzes responses from more than 100 retailers, consumer products companies and warehousing/distribution companies on how LSPs are functioning in areas such as automation, distribution centers (DC), and transportation.

Many supply chain and procurement professionals are identifying and partnering with the best logistics vendors, as well as determining if those vendors can execute at an acceptably high level. Understanding each prospective vendors specialties can be the difference between success and failure, adds Ferrell.

According to the survey findings, lower costs and increased flexibility continue to top the list of reasons to outsource. Additional results include:

Report Reveals Reasons to Carefully Evaluate LSPs before Outsourcing