Report Reveals Reasons To Carefully Evaluate LSPs Before Outsourcing

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Tompkins Supply Chain Consortium Takes a Closer Look at the Performance of Logistics Service Providers 

RALEIGH, NC, August 16, 2012 Not all Logistics Service Providers (LSPs) do the same thing, and not all do the same things well, a new report from Tompkins Supply Chain Consortium affirms.

“LSPs tend to take on the characteristics of the industries they serve,” says Chris Ferrell, Director, Tompkins Supply Chain Consortium. “And in turn, this impacts the way they run their business and how they serve their customers.”

The report, Selecting a Logistics Service Provider: It’s Not One Size Fits All, analyzes responses from more than 100 retailers, consumer products companies and warehousing/distribution companies on how LSPs are functioning in areas such as automation, distribution centers (DC), and transportation.

Many supply chain and procurement professionals are identifying and partnering with the best logistics vendors, as well as determining if those vendors can execute at an acceptably high level. “Understanding each prospective vendor’s specialties can be the difference between success and failure,” adds Ferrell.

According to the survey findings, lower costs and increased flexibility continue to top the list of reasons to outsource. Additional results include:

  • Nearly half of the respondents outsource transportation operations (see graphic for more on how transportation functions are managed); 

  • More than half of the companies use some type of internal audit to monitor invoices; and

  • Nearly three-fourths of respondents outsource at least part of their DC operations.

For more information on LSPs, download the report at:

About Tompkins Supply Chain Consortium
Tompkins Supply Chain Consortium is the premier source for supply chain benchmarking and best practices knowledge. With more than 350 participating retail, manufacturing and wholesale/distribution companies, the Consortium sponsors a comprehensive repository of over 10,000 data points complemented by search capabilities, online analysis tools, topic forums and peer networking for supply chain executives and practitioners. The Consortium is led by the needs of its membership and an Advisory Board that includes executives from Domino’s Pizza, GlaxoSmithKline, Hallmark, Ingram Micro, Kane is Able, Miller-Coors, The Coca-Cola Company, Target and University of Wisconsin. To learn more about how your company can become a member of the Supply Chain Consortium, contact John Foley, 919-855-5461 or visit                                              

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