6. Early results – a hierarchy of risk and reward Progress to date Early Results Interviews Survey 1 Survey 2 Survey 3 Blind Outsourcing: No service or operational criteria, customer not able to specify requirements, probably chasing a cost saving. Procurement Officer Outsourcing: Specification based On previous 12 to 18 months performance. Save money Outsourcing to change an element of the supply chain that customer cannot do on their own. End result defined in terms of infrastructure, people & process is agreed with the customer pre contract. Targets agreed across term ‘ Traditional outsourcing’ led in partnership with Customer’s logistics team or consultants. Process includes ITT, RFI etc Prescriptive: Customer owns Infrastructure and assets. LSP supplies labour and Intellectual Property within clearly defined and closely managed boundaries Customer Supply Chain Control High Low Balance of risk to customer Low High JSC with organisations sharing infrastructure and risk
![Hypothesis ,[object Object],A research project based at the University of Huddersfield and supported by the Chartered Institute of Logistics](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)