THE IMPORTANCE OF RISK MANAGEMENT WHEN OUTSOURCING LOGISTICS PROCESSES

The aim of this article is to establish a connection between risk management and outsourcing processes. For this purpose, the authors examined a specific company in the period from February to June 2017. Thereby, the article attempts to illustrate how involving profound risk management practices when outsourcing logistics processes creates incremental value to the company. Firstly, a theoretical framework for risk management and logistics processes will be defined. Subsequently, this framework will be applied to the case of a German production company in the food sector. The primary purpose of this article is to introduce a best practice case of outsourcing logistical processes by utilizing a specific risk management approach. The conclusion of the implementation of the best practice case shows that the outsourcing of business processes has become increasingly important. Outsourcing enables companies to focus on its key competencies and gain more competitiveness among other organizations. However, these implementations should be supported by risk analysis since it enable a more valuable and comprehensive foundation for outsourcing decisions.