Outsourcing, which has been hailed as one of the most important management concepts in the last 75 years, has become an accepted concept for increasing the efficiency of non-core chain activities. Outsourcing allows organizations to focus on their core competencies, provide a more specialized level of customer service, and take advantage of greater operational flexibility.
Because outsourcing often reduces costs, it does not provide the continuous savings that companies want. Another important development in supply chain management has emerged that is common to fourth-type logistics. Logistics of the fourth type enables you to respond more effectively to today's supply chain needs.