In the past, buyers of logistics outsourcing services relied more on the stick model of achieving performance-compliance fines, penalties, and punitive action. Recently, we've seen outsourcing relationships begin to shift toward collaborative practices that focus more on the carrot, or joint-value creation.
However, logistics service providers report that making the transition isn't straightforward and simple in practice, and there is certainly no one answer. Here we share a set of practices around relationship development that several providers and their customers have put into action and that have led to success.
Factors straining relationships
Here are the factors that providers and their clients report most commonly challenge outsourcing relationships. While doing this research, we found some form of the following scenarios at the heart of most strained outsourcing relationships.
For more information on this topic, or to read similar research, visit www.amrresearch.com.
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