Innovation on Logistics Processes via Outsourcing Practices
Innovation on Logistics Processes via Outsourcing Practices

Author(s): Efe Yesil, Behlül Şener, R. Gizem Mukanbay
Subject(s): Economy, Business Economy / Management, ICT Information and Communications Technologies
Published by: ASERS Publishing
Keywords: innovation; outsourcing; logistics, 3PL; 4PL; logistics processes
Summary/Abstract: Traditional industrial systems encourage and suggest vertical integration to manage the processes, which are in wide margin in logistic chains of the firms. In this chapter, examples of innovative outsourcing definitions and applications in logistic processes of which important business branches, which must adapt to globalized world, are going to be mentioned. How to outsource procurement, warehousing, distribution, transportation, and outsourcing of information technologies and effect of them to logistic processes will be analyzed in terms of innovation. National and international rivalry has enormously increased regarding globalization and recent changes in our century. Furthermore this has had a significant compulsive fluency on the evolution of organizations. The focal point of this organizational evolution is the necessity of possessing a flexible structure in order to adapt to this rapid technological change and other enhancement processes. That’s why big scaled structures organized vertically will be inadequate and slow in adapting this rapid evolution period. Recent trends show that organizations avoid this vertical structuring and focus on the fields in which they are best. Outsourcing firms on specific issues (in their jobs), that specializes better, able to follow the market more closely and are able to adapt more quickly to change when they get some of the works in the field of parent company. Parent companies will benefit from selected outsourcing firms within reducing costs and increasing their profits. This aspect shows us benefitting from an external source (outsourcing) applications, the parent companies will be able to focus on the development of the main works and are also positively affected.

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