£199.99 £139.99 for one year of Unlimited learning. Offer ends on 14 November 2022 at 23:59 (UTC). T&Cs apply

Find out more
Outsourcing
Skip main navigation

Outsourcing

Not everyone is good at transport and warehousing.
© University of Warwick

Do you recognise any of these companies?

Do you recognise any of these companies?

Not everyone is good at transport and warehousing.

Many companies want to concentrate on what they are good at such as production, innovation or sales and marketing. This is called concentrating on your core competencies. This is why some compaies use third parties to run their warehouses and supply the trucks to make the deliveries.

The trucks you see travelling up and down the motorways with Sainsbury, Marks and Spencer or Mothercare on them are not necessarily owned by or driven by employees of those companies. They may well be supplied by companies such as Wincanton, Gist or DHL.

The majority of our on-line purchases are delivered to us by the courier companies such as Yodel, Hermes, DPD, UPS and Federal Express.

Who do you blame if your delivery is late – the company you bought the item from or the courier company who delivered it? Just think – on Mother’s Day, Valentine’s Day and Christmas you’re not the only person ordering on line expecting to get your parcel delivered on time – it’s you and millions of others – think about the pressure on these companies to deliver on time every time!

List all of the advantages of using a third party logistics company to deliver your goods. Then think about some of the disadvantages. Advantages might include not having to buy your own trucks whilst a disadvantage might be that you lose control over the delivery process for example.

© University of Warwick
This article is from the free online

Supply Chains in Practice: How Things Get to You

Created by
FutureLearn - Learning For Life

Our purpose is to transform access to education.

We offer a diverse selection of courses from leading universities and cultural institutions from around the world. These are delivered one step at a time, and are accessible on mobile, tablet and desktop, so you can fit learning around your life.

We believe learning should be an enjoyable, social experience, so our courses offer the opportunity to discuss what you’re learning with others as you go, helping you make fresh discoveries and form new ideas.
You can unlock new opportunities with unlimited access to hundreds of online short courses for a year by subscribing to our Unlimited package. Build your knowledge with top universities and organisations.

Learn more about how FutureLearn is transforming access to education