In operating their extended supply chains, many companies nowadays are looking at Logistics Service Providers (LSPs) to execute the nuts-and-bolts of the logistics operations on their behalf.

What they do not realize is that more often than not, these LSPs operations fail to truly execute the chain in the best interests of their clients. Rather, the LSP will optimize it's resources and activities to maximize their own profitability on operations - benefits which seldom are shared with their principals.

Outsourcing then is not as simple. Careful weighing has to be done in the selection of the right LSP, even in identifying the right type of LSP. Hand-in-hand with the outsourcing initiative goes the reduction of internal controls. Suddenly the client company is faced with the task to verify the effectiveness of the operation on basis of data provided by the LSP, and lacks the reference to gage whether the billing is on, above, or below par....

chaintel is specialised in providing support to companies contemplating, or executing, a logistics outsourcing strategy, especially in:

  • defining and reviewing outsourcing strategies
  • mapping prospective service providers
  • tender processes
  • contract review and contract management

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