This article discusses the outsourcing of materials handling activities and investigates different options for its implementation. The article uses descriptive case studies found in literature from the Western European automotive industry to map out differences in current practice and to evaluate frameworks found in the literature. These frameworks appear to be limited to decision making at a strategic level. In addition, they only allow decisions relating to the outsourcing of the logistics function in general, not of materials handling in particular. Based on this study and other descriptions of materials handling practice in the literature, a new conceptual framework for outsourcing of materials handling is proposed, which facilitates decision making at a tactical/operational level. The functionality of the framework is tested in a series of cases at a major production and logistics facility of Scania