THE METHOD OF VALUING OF LOGISTIC OUTSOURCING SERVICES

Authors: Najafov E., Hasanli O.
UDC 334.7

Abstract. Outsourcing services widespread in developed countries, have been used in the economic market of the Republic of Azerbaijan in recent years, mainly in the fields of accounting, human resources, marketing, information technology and logistics. Our previous study on “Logistics in the transport complex of the Republic of Azerbaijan”, based on 11 criteria for the development of logistics outsourcing, concluded that the lack of trust between companies and their desire to maintain control in most areas is one of the reasons for poor development of logistics outsourcing. The new article discusses the new criteria developed by us in addition to the existing criteria in the literature to assess the existing concerns of companies before concluding a mutual agreement in the field of outsourcing and to conduct internal and external evaluations of logistics outsourcing services. Considering that the criteria given in the literature do not fully cover the internal evaluation of logistics outsourcing services, an additional risk assessment criterion was proposed by us. In addition to the criteria given in the literature, two other criteria was developed by us in the external evaluation of logistics outsourcing services, which reflect the capacity of logistics providers and tracking of vehicles in use. The problem of unreliability and mistrust between companies and enterprises will be solved to some extent by making the optimal decisions through the new method discussed in this article.

Key words: logistics, outsourcing, economics, transport logistics, 3PL, 4PL, evaluation method, logistics management.

Numbers of magazine:
№-2 (25) 2022

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