Strategies for Effective Logistics Outsourcing: A Case Study in the Serbian Market

Abstract

The viability of numerous businesses in today's competitive landscape is significantly influenced by their ability to successfully implement outsourcing strategies, particularly in the realm of logistics. Despite the extensive body of literature exploring the multifaceted dimensions of outsourcing, there remains a notable gap in research specifically addressing logistics outsourcing in distinct markets through in-depth case studies. This analysis seeks to bridge this gap by providing a comprehensive examination of the logistics outsourcing process, as evidenced by a case study within the Serbian market. The research delineates the essential steps required for the establishment of a productive logistics partnership, encompassing the identification of needs, selection of a trusted Logistics Provider (LP), integration of logistics solutions with existing IT systems, delegation of goods handling, assignment of intralogistics responsibilities to maintain compliance with prevailing standards, specification of shipping and delivery requisites, and the continuous monitoring of activities and key performance indicators (KPIs). Through a detailed exploration of transportation, customs clearance, warehousing, customs declaration filing, document exchange, software implementation, and cargo insurance, the study illuminates the intricate processes involved. It is highlighted that the key advantages of such collaborations include enhanced efficiency and streamlined operations, while potential risks involve dependency and loss of control over logistics functions. The distinctiveness of this study lies in its comprehensive approach to outsourcing, encompassing seven critical activities, as opposed to the existing literature which predominantly focuses on the outsourcing of singular services. By offering both theoretical insights and practical implications, this research not only contributes to the existing body of knowledge but also paves the way for future investigations into logistics outsourcing, with a particular emphasis on the Serbian market.