An asset utilization model applied to outsourcing the marketing service of logistics

In today's competitive business environment, companies continually search for ways to improve operational efficiency while positively impacting financial position. Outsourcing logistics through third party providers is one alternative for accomplishing these goals.;Employing the DuPont model and an outsourcing survey as methodological tools, this inquiry investigates the association between the outsourcing practices of the largest U.S. manufacturers and their financial performance. Primary findings of the research indicate that: (1) there are significant differences in certain asset performance ratios between those companies outsourcing and those not outsourcing logistical services; (2) certain manufacturing industries demonstrate significantly different penetration rates for outsourcing logistics; and (3) the significant differences in asset performance ratios between outsourcing and non-outsourcing companies are especially prevalent within particular industry sectors.