The Method of Valuing of Logistic Outsourcing Services

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 mutual trust between companies and their desire to maintain own control in most areas is one of the reasons explaining poor development of logistics outsourcing.The proposed article proposes for discussion new criteria developed by us, in addition to ones existing and described in the scientific 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 described in the research papers do not fully cover the internal evaluation of logistics outsourcing services, an additional criterion of risk assessment was proposed by us. In addition to the criteria already known from the scientific sources, two other criteria were developed by us also for the external evaluation of logistics outsourcing services, those criteria 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.