Abstract
Manufacturing and retail industries share three key issues for increasing competitive advantage through logistics outsourcing (LO) : coordinating information with outsourcer, the interest and involvement of management, and logistics competence. Manufacturers can raise competitiveness through LO directly by increasing cost-competitiveness or indirectly by shrinking throughput time and increasing inventory turnover. The latter includes difficulties in imitation by other companies due to persistent changes in the structure and internal activities of non-outsourced divisions.
