The world’s most successful companies, such as Amazon.com, Apple and HP, are capitalizing on sourcing of logistics and other business process to focus on their core business. Outsource logistics will affect positively on capital costs, operating costs, revenue growth, customer service and human capital.

The major motivation for delivery service outsourcing are:

1. Increase Revenue

  • Increase flexibility & responsiveness
  • Increase speed to market
  • Improve quality
  • Decrease customer response time
  • Gain access to new markets
  • New value-added services

2. Improve Capabilities

  • Focus on core business
  • Gain access to new technology
  • Gain access to advanced skills
  • Provide flexible facility capacity
  • Provide backup capability

3. Reduce Cost

  • Reduce capital investment
  • Reduce operating costs
  • Reduce IT costs
  • Reduce Visa expenses
  • Transform fixed to variable costs