ABSTRACT
In most developed economies, logistical costs are growing steadily and account for an increasing proportion of the gross national product. This chapter deals with logistical management activities that could be outsourced and what considerations should play a role in making this decision. In business, the marketing strategy emphasis on product and price is shifting to promotion and place. The accelerating pace of change in customer demands is increasingly affecting company policies. The market for logistical services can be subdivided into the following four segments: operational, industry-focused, diversified and tailor-made contract logistics. A company carrying out logistical activities in-house bears the responsibility for personnel matters such as recruitment, selection and training. Furthermore, sufficient equipment must be available to make any necessary repairs. The entire organisation must be involved in the outsourcing process. The decision to contract out the logistical management function is a strategic one, and will affect the whole organisation for a long period of time.
