Logistics, defined as the process of strategically managing the procurement, movement and storage of materials; parts; finished inventory and related information flow through the organisation and its
marketing channels, is increasingly being recognised as a vital part of an organisation’s marketing strategy.
In many organisations, the logistics function is currently facing significant challenges. Pressures from
increasing competition and high customer service-level expectations have created a need for more
professional and better-equipped logistics services. Confronted with such competitive pressures, these
organisations are faced with decisions of the make OR buy kind with regard to the logistics processes of supply and distribution. In addition, the emergence of a need to focus on core capabilities has led many organisations to contract out all, or part of, the logistics function to third-party providers.
This paper explores the challenges of outsourcing logistics in the UK convenience-retailing sector
