The effect of logistics outsourcing on the supply chain vulnerability of shippers: Development of a conceptual risk management framework

From a synthesis of literature, the purpose of this paper is to present a conceptual risk management framework, showing the effect of logistics outsourcing on the supply chain vulnerability (SCV) of shippers. The framework is designed to assist practitioners and academics in better understanding the key research, management as well as operational aspects involved.

A literature review is conducted and based on these findings a conceptual framework developed.

Logistics outsourcing is increasingly used by shippers, but the specific aspect of supply chain risk management (SCRM) and SCV in this context is rarely covered in research and implementation in practice is limited. Logistics outsourcing can have an ambiguous effect on the SCV of shippers and is influenced by other internal and external factors.

Literature directly dealing with logistics outsourcing and SCV/SCRM is rare and thus the framework is built on insights, compiled from the distinct research areas. Further research should be performed on this nascent topic.

Shippers may use the framework to revise their risk management strategy and actively use logistics outsourcing to decrease SCV. Logistics service providers can tailor their services specifically toward clients and thus both can be better prepared for future supply chain disruptions.

This paper looks specifically at SCV and SRCM of shippers with regards to logistics outsourcing.