A Theoretical Framework on Logistics Outsourcing Performance Appraisal

The worldwide usage and importance of logistics outsourcing has grown dramatically over the last decades and will continue to do so. so clearly understanding the drivers of logistics outsourcing performance is critical knowledge for managers to have in today's competitive business environment. In earlier time, firms aiming purely at cost reductions in the logistics outsourcing arrangement but now they emphasize other aspects. In this paper, by analyzing the benefits and risks of logistics outsourcing, we propose a method of how to make the decision of finding the optimal outsourcing scopes with respective firm. Based on the discussion of KSF and KPI of logistics outsourcing, we develop a logistics outsourcing performance appraisal system from the perspective of balance scorecard. We also address the challenges, future trends and some additional research needs in this area.