Outsourcing Transportation Management

Abstract

Transport management has significant importance in every organization. This chapter aims to evaluate the outsourcing decision of transportation management of an online shopping company. Recently, the company has witnessed significant growth in its operations, and it became inevitable to decide whether it continues outsourcing transportation management or go for insourcing as various problems are experienced due to outsourcing. The company has many logistics operations that include inbound receiving, warehousing, and outbound distribution. All the operations are considered and studied to understand the problem and objectives of outsourcing. In this chapter, a literature review regarding outsourcing transportation management is provided. Afterward, a research methodology is proposed and adopted, and then cost analysis is performed to check the feasibility concerning financial resources. Based on the cost analysis, it is decided to discontinue outsourcing transportation management. Some recommendations are also proposed for insourcing transportation management.