May 5, 2010

Vested outsourcing only works for a few companies, says consultant

By DC Velocity Staff

Based on his experience, EnVista president Jim Barnes said "vested outsourcing" only works for five percent of companies. As described in the recent book Vested Outsourcing by Kate Vitasek, the concept refers to a third-party logistics arrangement in which both a company and its provider have a stake or vested interest in each other's success. (For more on vested outsourcing, see the August 2009 DC Velocity article, "Vested Interests.")

"It takes a high level of commitment at the senior executive level to make vested outsourcing work," said Barnes whose company, EnVista, provides consulting as well as transportation platform management. "It's not for everybody."

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