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The importance of prices in logistics outsourcing – part 2

The reasons directly underlying the changes in the types of price lists and forms of settlement between various parties in the logistics services market can generally be divided into two groups:
– those on the demand side for services,
– those on the supply side of services.
On the demand side, the factors that have had the greatest impact on shaping price list configurations in recent years are:
– increasing demand for such services in connection with the increasingly strong trend towards outsourcing in the Polish market,
– economic development,
– a visible change in the nature of transported goods,
– customer expectations,
– progressive unification and systematization of shipment parameters in terms of the repeatability of batches of goods from a given customer.
On the supply side, the following features should be noted:
– increasing competition in the logistics services market resulting, among other things, from the entry of large global logistics operators into the Polish market in recent years,
– changes in goods flow technologies,
– continuous expansion of the scope of logistics services offered by specialized companies.
Depending on the type of services provided, their scope, and other features, the rates offered to customers can have a diverse character:
– fixed (proportional),
– degressive,
– progressive.
Most of the price lists for services related to the transport of goods currently offered to customers are degressive in nature. This means that the rates for transporting goods per unit of cargo (e.g., 1 kilogram, 1 pallet) decrease as the size of the one-time cargo batch increases. In the case of other logistics services, fixed (proportional) price lists are most often used. This is primarily due to the nature of these services and the companies’ previous experience. Depending on the type of services provided, the costs of logistics companies can be divided into the following main groups:
– transport service costs,
– warehousing service costs,
– freight forwarding service costs,
– additional service costs,
– costs of other logistics services.
The distinguished groups of costs for logistics service providers correspond to the prices applied analogously. Prices for logistics services can be set in two ways. In general, a system of contractual prices and a system of tariff prices can be distinguished. The contractual system consists of determining the payment for a specific logistics service each time. The amount of the contractual price is most often negotiated between the service provider and the service recipient. The amount of such a price is not subject to any legal restrictions and is most often shaped by supply and demand. Contractual prices can be used in any case, unless prohibited by a specific regulation or international agreement.
In the tariff system, we are dealing with a list of prices for specific types of services, to which both parties to the contract adhere. In addition to the rate tables made public, the conditions for their application and detailed regulations regarding the method of calculating payments also apply. The prices contained in the tariffs are unit prices, which means the amount of payment for a specific single activity or other unit of work. We can therefore see that knowledge of the types of logistics service prices, the level of rates, forms of settlement between parties in the market, types of tariffs and conditions for their application, and additional services included in the price of the basic logistics service is a fundamental condition for making the right decision about outsourcing.
Strategic conditions of logistics outsourcing
When analyzing the importance of prices in logistics outsourcing, one should also refer to strategic conditions. They constitute a whole web of complex dependencies. On the one hand, the use of outsourcing can affect strategic conditions in an enterprise, and on the other hand, these conditions can be the premises for making decisions regarding outsourcing.

L2006-4s34.pdf