ABSTRACT

From a supply chain standpoint, there are a variety of functions that may be candidates for outsourcing such as warehousing, transportation, freight audit and payment, procurement, and customer service/call centers. The rapid increase in outsourcing can at least partially be attributed to increased technological expertise, more reliable and less costly transportation service, and advancements in telecommunications and computer systems. The for-hire transportation industry has thousands of carriers who specialize in product movement between geographic locations and provide an assortment of services in various modes of transportation with related technology. While potentially any business process or activity can be a candidate for outsourcing, the main areas to be considered when it comes to omni-channel are e-commerce order fulfillment, transportation, technology, and reverse logistics. Outsourcing customized value-added services to a third-party provider can offer more scalability in terms of space and labor as well as access to state-of-the-art technology and equipment without the need to tie up capital.