Outsourcing Logistics Functions to Third-party Specialized Companies: Advantages and Risks

Authors

  • Rybtsov Serhii Director of Operations at Hugo Hunter Inc, Charlotte, NC

Keywords:

outsourcing, competitiveness, logistics, logistics provider, advantage, risk, risk management, supply chains

Abstract

The article examines the outsourcing of logistics functions to third-party specialized organizations, focusing on its advantages and associated risks. Modern companies face the need to optimize logistics processes, making outsourcing a crucial tool for supply chain management. However, delegating these tasks to external entities not only reduces costs and provides access to advanced technologies but also introduces risks such as loss of control and potential data breaches. There is no unified stance in academic literature regarding the extent of outsourcing’s impact on business performance. Some researchers confirm its positive effects on financial indicators and operational flexibility, while others highlight potential challenges and the rise of hidden costs. This study aims to systematize the advantages and risks of logistics outsourcing and identify key factors that determine its successful implementation, forming the basis for strategic recommendations. The author's contribution lies in a comprehensive analysis of the topic, considering strategic, economic, and technological aspects. The findings can be applied in both academic research and practical management decision-making. The presented material is valuable for researchers in logistics and risk management, professionals involved in supply chain organization, and business leaders considering the outsourcing of logistics functions.

References

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Published

2025-05-05

How to Cite

Rybtsov Serhii. (2025). Outsourcing Logistics Functions to Third-party Specialized Companies: Advantages and Risks. American Scientific Research Journal for Engineering, Technology, and Sciences, 101(1), 349–357. Retrieved from https://asrjetsjournal.org/index.php/American_Scientific_Journal/article/view/11573

Issue

Vol. 101 No. 1 (2025)

Section

Articles

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Copyright (c) 2025 American Scientific Research Journal for Engineering, Technology, and Sciences

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