CSCMP's Supply Chain Quarterly
July 31, 2010
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Supply Chain Executive Insight E-Newsletter
Each month the Supply Chain Executive Insight e-newsletter will include brief articles about developments that are often overlooked by other supply chain publications. We will present you with summaries of the latest research as well as new ideas on how to make your supply chain operations more effective. And we'll offer commentary that sheds light on what's happening in supply chains today.
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Free Articles From The Current Issue
ASICS keeps pace with growing demand
ASICS America's single distribution center couldn't keep up with surging demand for its athletic shoes and apparel. Changing its distribution pattern and adding another warehouse helped the company manage both current sales and future growth.

Supply chain versus the volcano
The disruption to air traffic caused by Iceland's Eyjafjallajökull volcano is a reminder of why we should prepare for both expected and unexpected supply chain risks.

Dealing with our oil addiction
Will the Deepwater Horizon disaster spur us to develop new sources of energy?

There's more to performance management than metrics
Getting people to consistently perform at a high level requires more than implementing an incentive program.

Keeping it personal in a digital world
While electronic communication has become a permanent part of our daily lives, face-to-face communication is still important for supply chain success.

Most Read Articles

1. Apple's supply chain still on top of the pile
2. ASICS keeps pace with growing demand
3. There's more to performance management than metrics
4. Running inventory like a Deere
5. LEGO's game-changing move
6. Now's the time for an India strategy
7. Recession hinders inventory management
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Forward Thinking

New book advises: Give both parties a stake in outsourcing

By STAFF | From the Quarter 1 2010 issue
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A new book says that 3PL relationships will improve when both company and supplier have a vested interest in each other's success.

In traditional third-party logistics arrangements, the customer focuses on cost reduction and the third-party provider attempts to increase the size and profitability of the contract. But the authors of the book Vested Outsourcing: Five Rules That Will Transform Outsourcing say there's a better way: "vested outsourcing," a term coined by the authors, which refers to an outsourcing arrangement in which both a company and its suppliers have a stake or vested interest in each other's success.

The authors, Supply Chain Visions consultants Kate Vitasek and Mike Ledyard and Georgia Southern University's Dr. Karl Manrodt, based their ideas on how to improve third-party relationships on research they conducted with support from the University of Tennessee and the United States Air Force.

The book describes how vested outsourcing works, how it benefits both parties, and how to develop a vested outsourcing relationship. The authors also explain the 10 most common problems with traditional outsourcing arrangements and explore the economic principles that are driving the evolution of outsourcing.

Published by Palgrave Macmillan, the hardcover edition of Vested Outsourcing: Five Rules That Will Transform Outsourcing (ISBN: 978-0-230-62317-0) retails for $45.00.

We Want to Hear From You! We invite you to share your thoughts and opinions about this article by sending an e-mail to ?Subject=Letter to the Editor: Quarter 1 2010: New book advises: Give both parties a stake in outsourcing"> . We will publish selected readers' comments in future issues of CSCMP's Supply Chain Quarterly. Correspondence may be edited for clarity or for length.

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