Describe outsourcing. How does outsourcing affect the efficient deployment of supply chain management?

With outsourcing, or contract logistics, a company turns over the entire function of buying and managing transportation to a third party, usually an independent carrier. Third-party carriers have economies of scale because of consolidating transportation modes and can also offer extra services. Many corporations use contract logistics due to budget constraints, mergers and divestitures, and increased globalization.
Outsourcing can also apply to contract warehousing.
Outsourcing allows companies to cut inventories, locate stock at fewer plants and distribution centers, and provide the same service level or better. Outsourcing often leads to exclusive partnerships between suppliers, retailers, or manufacturers and carriers, warehousing experts, or logistics management suppliers. These partnerships allow better inventory management, the ability to meet delivery dates, efficiency in filling emergency orders, and high accuracy in filling orders. Thus, outsourcing is becoming increasingly important in efficient deployment of supply chain management.