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Complete 10 page APA formatted essay: Pros and Cons of Outsourcing Logistics.The goal of this process is not just to cut costs but also to employ skills that are not available internally. Presently, t
Complete 10 page APA formatted essay: Pros and Cons of Outsourcing Logistics.
The goal of this process is not just to cut costs but also to employ skills that are not available internally. Presently, there is an increase in the number of outsourcing companies putting outsourcing logistics on the limelight. Consequently, there is a rise of debates on whether outsourcing logistics is undesirable or desirable (Carter, 1).
Increased globalization of corporations has led many organizations to carry out their activities in the most effective and cost-efficient way so that they outlive the competitive pressures. In this case, the companies adjust by including only the efficient activities hence raising the need for outsourcing the remaining activities. While in the past years, outsourcing was mainly for the short-term reduction of costs, it has become a long-term strategic cooperation in recent years. This has brought about the development of new outsourcing business models. Some areas like shipping and warehousing have a long history of outsourcing for cost-reduction purposes in the field of logistics (Kersten. et al, 2).
The main reason why outsourcing is a practical business strategy is its ability to help the contracting company to focus on issues important for survival and future growth having allowed the outsourcing company to control their resources hence spreading risks. To many firms, logistics outsourcing is a means of reorganizing their distribution networks thus increasing their competitive advantages. In the last several years, there has been a dramatic growth of logistics outsourcing by use of a third party logistics (3PL) provider for all or part of an organization’s logistics operations (Regan & Wang, 1).
Sometimes, an organization decides on outsourcing when it is hard to handle all aspects of the business. .  .
