To outsource transportation, or not? Gartner identifies the benefits and cautions

ControlPay

ControlPay

January 11, 2016 - 09:10

Most logistics leaders and managers will face at some point the decision of whether to outsource a logistics function to a third-party logistics provider, or to keep it in-house. Gartner points professionals in the right direction by publishing the benefits and cautions associated with outsourcing the transport function.

Transport is the most highly outsourced and commoditized logistics function; 81% of companies surveyed outsource some or all of their domestic transport and over two-thirds of those businesses stated that cost reduction, and not customer service, is their No. 1 priority.

Top Three Reasons for Outsourcing Transport

1. Cost Reduction
2. Competency of Execution
3. Scalability

To outsource transportation, or not? Gartner identifies the benefits and cautions

To help companies better differentiate between what skills should be outsourced versus retained in-house, Gartner has issued a new report, "Focus on Transport to Identify the Benefits and Cautions of Logistics Outsourcing." The recommendations gathered in this research are developed to help supply chain and logistics decision-makers to:

  • Identify the benefits and risks associated with outsourcing the transport function.
  • Determine how to retain operational transport knowledge as well as transport management expertise in an outsourced scenario.
  • Understand the significance of a continuous improvement process in the transport function, regardless of whether the function is in-house.

Access the key insights: Gartner Focus on Transport to Identify the Benefits and Cautions of Logistics Outsourcing
Gartner Inc.

About ControlPay - Global & EMEA Freight Audit Solutions

ControlPay highly logistics driven freight audit services provide you full insight in your domestic and international freight invoice flows while enabling you to achieve cost saving up to 7%. Our team of experienced logistic experts fly all over the world to make sure you get the solution you need. At ControlPay we take great effort in designing the best solutions to truly benefit all your global businesses.

Learn more about our freight audit & payment services.

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