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Vested Outsourcing Leads to Supply Chain Efficiencies
How is logistics changing to be more flexible for changing inventory levels and client distribution and transportation needs?
 

Tim Feemster, Managing Principal, Foremost Quality Logistics
One big change that is occurring for logistics is in the area of outsourcing. Many logistics service providers and their clients will start to look at other outsourcing methodologies, such as Vested Outsourcing (see Vested Outsourcing: Five Rules that will Transform Outsourcing). Vested Outsourcing creates a collaborative relationship where both parties work together to achieve mutually agreed upon desired outcomes. An example would be where a logistics service provider, carrier, or a manufacturer is tasked with introducing new innovative practices that improve the operation, such as being more flexible in changing inventory levels, and reducing costs for their client. The client then shares a percentage of the value derived with the logistic service provider. This creates a win-win solution for both parties. Some companies are using Vested Outsourcing as a way introduce lean principals across company boundaries and to target overall waste in the supply chain.
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