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Logistics Outsourcing – A Means of Assuring the Competitive Advantage for an Organization
science-&-motorvehicles07/63_parashkevova_2

Authors

Loretta Parashkevova - Varna Free University

Abstract

Keywords: outsourcing, logistics, provider

The logistics approach suggests integration of separate units in the delivery supply chain into a unified system of direct management of material and information flows targeting the accomplishment of the desired result with a minimum loss of time and resources. The implementation of an up-to-date logistics management in companies provides more effectiveness. This means to use outsourcing. Logistics outsourcing brings to the reduction of stocks, order-to-delivery lead-time reductions and an increase of quality, expansion of production flexibility, lowering the cost of production, accelerated capital turnover. This guarantees lower production costs and better quality of deliveries, which is a decisive competitive advantage. The application of logistics outsourcing helps the rational allocation of resources to those types of business, which are worth competing and where the company has distinctive advantages. So this work debates the application of logistics outsourcing as a means for ensuring competitive advantages for an organization.

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