Choosing the right sourcing model for thirdparty logistics outsourcing agreements
Abstract
Modern outsourcing is more than a typical make–buy decision. Rather, there is a wide range of sourcing business models that today’s practitioners can choose from. Unfortunately, the fundamental nature of how goods and services are procured is not keeping pace with best practices of tapping into more mature sourcing business models; many business professionals wrongly assume that a transaction-based business model is the only way to architect a supplier contract. This paper provides an easy-to-understand framework for classifying the various contracting approaches along a sourcing continuum. A key goal of the paper is to help organisations understand the various models and see examples of how they are used in practice.
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Author's Biography
Kate Vitasek is an international authority on highly collaborative win–win relationships for her award-winning research on the Vested® business model. Author of seven books, she leads the University of Tennessee’s Certified Deal Architect programme. World Trade Magazine has lauded her as one of the ‘Fabulous 50+1’ most influential people having an impact on global commerce, and she is a member of the Hall of Fame for both the Sourcing Industry Group and the International Association of Outsourcing Professionals. Kate is a contributor for Forbes magazine and has been featured on CNN International, Bloomberg, NPR and FoxBusiness News.
Andrew Downard PhD is an experienced senior executive, consultant and academic with wide exposure to leading-edge international companies. He has significant experience in the procurement, supply chain and contracting functions. Andrew is the founder of Collaborative Impact Advisory, a boutique consultancy focused on helping clients maximise the value they get from their business relationships. Ci-Advisory is also a Vested Centre of Excellence. Andrew is a Certified Deal Architect Coach and co-teaches the University of Tennessee’s Vested Executive Education course.
Citation
Vitasek, Kate and Downard, Andrew (2024, September 1). Choosing the right sourcing model for thirdparty logistics outsourcing agreements. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 7, Issue 1. https://doi.org/10.69554/OTJR6502.
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