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Collaborative Outsourcing® - Powerful New Ideas for Freight Management


New approaches to outsourcing are helping shippers drive down costs in the short term and build smarter, stronger supply chains for the long term.

February 22, 2011

For many people, the word outsourcing conjures up images of manufacturing lines being moved overseas, or entire operations being extracted from an organization and transplanted to a third-party location.

While those models exist, they can best be thought of as subtractive outsourcing. Something is being removed from an organization in hopes of driving down costs or achieving higher levels of efficiency. The trade-off, historically, has been a potential loss of control—and, in some cases, additional risk in terms of quality, customer experience, data security, and reputation management.

Today, however, many forward-thinking organizations approach outsourcing from a different perspective. Instead of viewing it as a subtractive exercise and a giving-away of strategic control, they look at outsourcing as a low- or no-cost strategy for adding talent, capacity, and technology. Instead of exporting control, they are importing expertise and technology that help them drive down costs, improve efficiency, and/or enhance customer satisfaction.

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