Outsourcing usage ....How high can it go?

[Monk]

I have heard of figures as high as 80% for the current usage of Logistics Outsourcing. Do you think this will go much higher. Will we see close to 100% in the future? What are the pros and cons?

[TopLink]

There will always be companies for whom outsourcing does not make sense. This could be because Logistics is a core activity for them, that they have specialist skills in it, that they have specialist assets required to do it etc etc.

Having said that, I'd expect overall outsourcing usage to climb up to about 90% over the next few years.

What might be interesting, is to run a poll on what activities are outsourced. That is broadening a lot.

Article - Logistics Outsourcing, Good or Bad

[Big Wheel]

I agree. Beyond 90% is hard to imagine. There will always be companies who:

1. Are too small to outsource,
2. Want to stay in house as a matter of policy.
3. Have better specialist skills than 3PLs
etc etc