Abstract
Services offered by contractors in physical distribution activities have developed considerably in recent years. Contractors are now more sophisticated in their business approach and are much more professional in selling their services. This article describes a practical and structured approach to purchasing contractor services. It includes specifying precise requirements in writing, and the contents of such a service specification; how to go about choosing suitable contractors and subsequently developing the right working relationship. The article discusses how to monitor subsequent performance and control costs; it provides a useful checklist for the user involved in contracted operations.
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