engleski

Logistics Costs Rationalization by Applying Outsourcing

The constant development of production technology and the global market economy competition is forcing companies to continuously review their competitive advantage and to find new possibilities of cost reduction. As the manufacturing processes have already become so optimized and perfected resulting in the quality and range of products which are becoming more and more indisputably uniform, the focus is set on competition between competing firms which occurs in the area concerning the prices, where physical distribution of products plays an important role. Therefore, the possibility of further cost reduction and achieving competitive advantage must be sought outside the manufacturing, primarily in the procurement and distribution logistics. There opens up a space for the restructuring of the supply chain by employing external providers of logistics services in the structure of the supply chain including their own resources and logistics intellectual capital, which ultimately allows the rationalization of logistics costs.

Outsourced logistics services ; supply chain ; streamlining ; logistics costs

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