Gartner Research

Logistics Outsourcing Needs Call for the Best Commercial Pricing Model

Published: 27 February 2019

ID: G00379990

Analyst(s): Courtney Rogerson, David Gonzalez

Summary

Supply chain leaders responsible for logistics outsourcing want to understand the real costs of a service and whether they are being overcharged. This research details the pros and cons of three predominant pricing models for outsourced logistics contracts.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Identify the Best Commercial Framework for Your Outsourced Logistics Needs
    • The Open-Book Challenge
  • Define the Characteristics of the Individual Commercial Models, Clearly Detailing the Pros and Cons for Each One
    • Transactional Pricing — Closed Book
    • Cost-Plus Pricing — Open Book
    • Activity-Based Costing — Part Fixed, Part Variable
    • Other Pricing Models
  • See and Act on Your Organization’s Changing Needs and How These Influence the Expectations on the Outsourced Logistics Service

Case Study

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