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With something as complicated as logistics outsourcing, it can pay to bring the provider into the initial planning process. And yes, that may mean picking your LSP before you even get to the RFP stage. In one of his brushes with re-engineering, the comic strip anti-hero Dilbert pleaded , “If you let me keep my job, I will do the work of 10 people. Specifically, it will be the 10 people in our strategic planning department. They don’t do anything.” When it comes to strategic planning for logistics outsourcing, it’s conceivable that Dilbert could do the work of 20 people. In spite of its growth, increased sophistication, and impact on a business’s supply chain operations, a surprising number of companies still undertake outsourcing and provider selection with little regard for overall logistics strategy. That’s a downright risky way to proceed. A sure recipe for disaster is to embark on a program that is not suitable, is not understood clearly, or is full of unrealistic expectations. In my experience, outsourcing relationships run a high risk of failure when a company outsources an activity that its own personnel don’t totally understand and the provider promises to meet objectives that have not been clearly defined, communicated, or understood. Outsourcing should always be carefully thought out and measured against the alternative of doing the job in house. To be sure, the analysis process will be tedious and in some cases, downright unpleasant. Collecting data will consume valuable time and resources, and the entire process will require patience, perseverance, and persuasion in dealing with other internal functional groups. This will be necessary, however, to identify the merits and drawbacks of each course of action. It’s also important to include the potential provider in the process from the beginning. But wait. What if the provider […]