Among the criteria for selecting an outsourcing concept for small, medium, and micro-enterprises in the area of logistics, the following should be indicated, among others:
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the time perspective of the outsourcing project – this refers to the strategic perspective
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the possibility of precisely defining the outsourced area (in the case of logistics, it should be specified whether it concerns procurement, distribution, or an integrated system)
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the competency capabilities of the service provider’s employees (including company owners in the case of micro-enterprises and artisans)
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the possibilities of correcting the outsourcing project, for example, due to the prices of services, products, the duration of the outsourcing project, the quality of services and products implemented in the project, and others
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the financial and economic capabilities of the client
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the financial and economic capabilities of the service provider
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the legal possibilities for the appropriate construction of the outsourcing project contract.
Taking into account the above criteria, it seems beneficial to apply the following outsourcing concepts for the implementation of logistics functions in SME sector companies:
1. FUNCTION CONTRACTING. Contracting occurs when external companies are engaged to perform services or tasks that were previously performed by an internal department of the enterprise (in many cases of micro-enterprises and artisan firms, logistics functions are performed directly by the owner). The application of this concept takes place within the perspective of the company’s tactical approach. In the vast majority, it concerns auxiliary functions.
2. SERVICE OUTSOURCING. To decide whether we choose outsourcing or simple contracting, we must first determine what we want to achieve. When choosing outsourcing, one must focus on specifying the requirements and performance measures that will apply to the supplier, for example, quality criteria or cost criteria.
3. CO-SOURCING. This is a contract in which the recipient provides their own employees to perform the service, but they are not transferred permanently. The application of this outsourcing concept gives employees a sense of security. It shows employees that in the event of a crisis, the employer tries to ensure their employment.
4. BENEFIT-SHARING CONCEPT. In the benefit-sharing concept, both parties – the supplier and the service recipient – invest in outsourcing and share the profits. The essence of these reactions is that both companies take into account the starting position and cooperate to achieve key goals. The benefits obtained are shared between both parties. Defining the benefits for both partners of the outsourcing project remains very interesting. These can be economic and financial benefits, but also, for example, image and marketing benefits.
5. BPO (BUSINESS PROCESS OUTSOURCING) CONCEPT. This concept involves the service provider not only being responsible for the taken-over function or process but also designing them in such a way as to better utilize the existing resources of the client and the service provider. By streamlining the process, it creates additional value for the company. The most important thing in this concept is defining the responsibility for the designed and taken-over functions, especially in the event of irregularities.
6. CONTRACTING OUT CONCEPT. This is the purchase of goods or services from an external supplier. In this case, the buyer controls the process of producing a given service or good. In other words, they clearly define what they want to receive and how it should be done. This concept forms the basis for the operation of companies that want to obtain high quality for their products and services.
7. INTERNET OUTSOURCING CONCEPT. It consists of using the possibilities of communicating via the Internet. The concept can exist autonomously, but it can also support the concepts presented above. It differs in the type of relationship between the employees representing the client and the service provider. Here, there is a lack of direct relationships.
Individual outsourcing concepts differ in the level of mutual relationships between the client and the service provider. They can be characterized from less strict – function contracting – to very strict, based on an economic-financial paradigm – the benefit-sharing outsourcing concept. One should also mention a very interesting concept, characterized by high development dynamics, namely the concept of outsourcing based on communication via the Internet. Choosing such a concept gives SME sector companies a chance to exist in the virtual economic space.
Using the Internet provides the opportunity for active play in the global market due to the lack of borders in communicating through this medium. This provides the opportunity for the expansion of local-regional solutions (which is especially the domain of small, medium, and micro-enterprises, including artisans) in a global aspect.
Research conducted by the author on the application of outsourcing in organizations, including the SME sector, indicates that the process of using outsourcing in the area of logistics began relatively late (research indicates that 2005 is the date when it was possible to confirm in studies the process of including logistics, including the application of outsourcing in this area). Research regarding the application of outsourcing on the Polish and European market, including in the SME sector, has been conducted by the author systematically since 1998. One can notice a correlation between the use of outsourcing in SME companies in the area of logistics and the significant perception of the logistics process itself in companies. The results of the research provide a basis for stating that a process of searching for optimal competencies for SME sector companies, including micro-enterprises – artisans, has occurred.
The article comes from the journal “Logistyka” 1/2010.