0 Replies Latest reply on Mar 19, 2010 9:53 AM by dustinmattison

    Is the market trending toward insourcing or outsourcing?

    dustinmattison Apprentice

      To determine whether the market is trending toward insourcing or  outsourcing, Jan Sjöstrand, who founded UnitedLog AB, says you have to  look at history. The outsourcing trend, he says, began in the early  1980s and its original purpose, from a transportation company's  perspective, was to "lock" customers in by providing warehousing  services that would make it difficult for customers to switch to a  competitor. 3PLs soon became 4PLs and "control tower" solutions were  commonplace, but they weren't necessarily profitable and the industry  slowly began a shift back toward insourcing -- until the global  financial crisis hit. Companies looking to remove assets from their  balance sheets caused a resurgence in outsourcing. Today, Jan Sjöstrand  is seeing a trend toward insourcing, but not as it was applied in the past.