Customer perceptions on logistics outsourcing in the European consumer goods industry

Abstract

This paper investigates customer perceptions on three key logistics outsourcing decisions: why to outsource, what to outsource and how to manage satisfaction within third party logistics providers (3PLs) partnerships. In addition to an analysis of the current literature, a Europe-wide postal and telephone survey revealed that outsourcing in the consumer good industry is heavily service driven and focused on the traditional logistics functions. The key findings of the work are that cost aspects play a smaller role for outsourcing in the consumer goods industry than anticipated, and that performance measurement systems will require increased sophistication over the coming years. It was found that a considerable number of consumer goods companies admitting that soft issues, such as cultural incompatibility and poor communication, may lead to the failure of the 3PL partnership.