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Logistics outsourcing has a significant effect on how manufacturing firms produce and deliver products to their customers. Indeed, many manufacturing firms do not own or manage the transportation and warehousing resources used for inbound and outbound shipments from their facilities. However, earlier research has demonstrated mixed results when outsourcing; some companies experience favorable performance outcomes while others do not. In this research, the authors investigate the effects of logistics outsourcing on Cost Of Goods Sold (COGS) by analyzing empirical data across a wide variety of industries using data from a survey of manufacturing plant managers.
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