Key Contractual Issues with Logistics Outsourcing

Whilst there have been many papers on logistics outsourcing there is very limited commentary on the contractual issues with logistics outsourcing. Most of the literature can be generally categorized according to different focus area. Some of these focus areas include logistics practices, usage of 3PL logistics services, current state and future trends, strategies, and performance measurements. The chapter attempts to address this “gap.” The chapter will focus on some of the key contractual issues with logistics outsourcing contracts currently troubling customers, service providers, and advisers, such as (a) scope of the services; (b) change control; (c) service levels and service credits; (d) risk allocation – limitations and exclusions of liability; and (e) benchmarking.