Rising fuel costs, sporadic shipping schedules, and changes in consumer spending habits are contributing factors to increased cost of goods to the consumer. Although several outsourcing agreements have matured within the transportation industry, the lack of effectiveness and scope may not be necessarily aligned to reflect these current changes. Many transportation companies are assessing their current posture with their outsourcing agreements by assessing their changes in business volume to produce a more strategic contract.
Transportation companies are re-evaluating their current outsourcing agreements for the following:
Consolidation of IT Systems
Enterprise Resource Planning
Supply Chain Processing
Logistic Application Development and Maintenance
Strategic sourcing and re-alignment of objectives can be achieved through re-negotiation of current outsourcing agreements that take advantage of the contract mechanisms existing today within the current agreement.