Outsourcing practice and contract design in the spotlight
WHU Otto-Beisheim School of Management and DHL Exel Supply Chain have published a joint logistics study entitled "Successful logistics: getting the relationship with logistic service providers right". The study provides an overall picture of outsourcing practices in trade and industry in Germany. At the same time, it provides recommendations for action with a special emphasis on the design of contracts from the point of view of contract awarders. More than 300 companies participated in a survey about their business relationships with their logistics partners.
Compelling reasons for conducting this study included the increasing complexity of cooperation between customers and service providers and the broadening scope of services provided. Stefan Kurrle of DHL, who is responsible for contract logistics in Germany, Austria and Switzerland, comments: "This study takes up current questions concerning increasingly interwoven logistics partnerships. As the leading global logistics company, we have supported this project because it demonstrates ways for improving cooperation that did not exist in this form until now."
Prof. Jürgen Weber of WHU explained: "Our study can make an important contribution to more successful future cooperation between contract awarders and logistic service providers. It highlights, for instance, the choice and design of remuneration structures in contracts. The right approach can produce significant benefits both for the customer and the logistics partner concerned."
Many contractors underestimate this factor and opt for contract models that are only superficially beneficial. On the other hand, if the remuneration structure is tailored individually to match the agreed partnership framework, it is possible to enormously increase the performance of the service providers and therefore the success of outsourcing. The study provides some practically relevant examples.
