Abstract—Logistics outsourcing is becoming a common phenomenon nowadays.

In other words, an
industrial or commercial company is to delegate all or part of its logistic activities to a Logistic Service
Provider. It is considered an important factor for competitiveness, flexibility and better responsiveness to
fulfill the needs of new economic challenges. This strategy has been growing steadily over the past ten
years for both industrial and tertiary activities. Although many reasons are behind this movement, it
seems interesting to problematize the lack or even the absence of research on logistics outsourcing in
the

Moroccan context. Given this criterion, a part of this research will be dedicated to determine the
strategic tool on which the managers are going to tap into to make a good decision of outsourcing.

will partially or totally lose control over some processes connected with logistics.

Service Provider; Strategic tool; Decision of Outsourcing.

Therefore outsourcing logistics, as well as outsourcing in general, allows the company to transform its
fixed costs into variable costs, allowing to concentrate its own resources on its production and its core
business.

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In this context, although attractive, total or partial outsourcing logistic activities create risks and cost that
managers want to master through looking for tools to rely on when deciding to outsource logistics.

On a theoretical level, the concept of outsourcing has been the subject of various researches and many
varied definitions have been set . The outsourcing decision has thus become a strategic act, interpreted
by firms as the willingness to refocus on their core business or seek externally missing expertise.

Since the early 1990s, the global practices in outsourcing logistics activities have been amplified, and lead
to a growth of nearly 10% .

Finally, in the context of globalization, have recourse to outsourcing logistics is also a way to get
physically close to it s customers.

Outsourcing logistics concerns service activities related to the physical product which would contribute
significantly to create a value for our customer. Presenting itself as one of the strategic trends of the
early third millennium, outsourcing logistics is a response to the need for corporate restructuring and
concentration of resources on core activities. It now extends to activities requiring high levels of
expertise.

This was how the idea of working on a logistic outsourcing project has mainly generated. The idea was
reinforced by noting the lack of studies dedicated to the issue of outsourcing in the Moroccan context .
The choice of preparing this paper study is basically for several reasons. First, the outsourcing of logistics
in Morocco is still

A company, which intends to subcontract logistics services to another external company, should realize
that they in its first stages of emergence . Secondly, in regard of improving the performance of Moroccan
companies, outsourcing of logistics is presented as an opportunity to benefit from the quality of services
while refocusing on the core business of the company. Finally, the recent meetings of experts dedicated
to this matter, mentioning only the 6th

Casablanca , which held its works under the theme

"Outsourcing, a strategic choice" seem to confirm the market trend towards outsourcing.

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Given these elements, and to conduct an effective research, our analysis process consists of two stages.
The first step tends to define a repository for the logistic outsourcing in the Moroccan context. The
research method adopted proposes to build the repository on a thorough research of work studies in
order to make the lack or even the absence of research dedicated to this discipline.

On a second level, we propose a set of tools to decide on outsourcing logistics.

Transaction Costs Theory. Indeed, it seems particularly appropriate to question the major determinants
of this decision in light of this theory.

The objective is to explore, applying the Transaction

Costs Theory, the impact of transaction attributes on the decision to outsource logistic activities. Hence,
we’ll bring our attention on the economic motivations of the outsourcing decision in a rather macro
perspective.

 An approach based on company strategy. We also recognize that a number of contextual factors may
influence the decision to outsource, making it more or less probable. We will only focus on a few factors
that are particularly important for our transactional perspective: The company size, its level of
competence in logistics and the place of the logistics function in the company.

[Link] AND ISSUES

In an international economic environment constantly changing, where competition is more and more
aggressive, Moroccan companies have a strong tendency to be specialists by focusing on their core
activity. Towards their way to development, they gradually delegate some of their activities for the
benefit of specialized service providers. That is basically the powerful movement of the outsourcing
strategy.

According to the study lead by Ernst & Young’s cabinet , outsourcing has now become common practice.

Outsourcing can be defined as the act of entrusting an outside service provider with an activity usually
carried out internally.

Moroccan context. In fact, many authors are working on the issue of outsourcing in every capacity.
As for the logistics outsourcing, the given definition is quite similar to that which is attributed to
outsourcing in general.

The objective of outsourcing can be envisioned for the future long term. The decision to engage to a long
term c an only be taken by the manager if he has the necessary strategic elements . The problematics
then becomes much more numerous and complex concerning the resorting of

Moroccan companies to outsource logistics. It is indeed an important strategic decision that should not
be implemented in haste, especially since it often excludes any possibility of going back. This leads to
undergo a comprehensive study.

Thus, economic, human, organizational, and technical criteria can be used in the decision to recourse or
not to outsourcing.

There are various tools that can be used. However, the most important one is the control of these tools
and the right choice in the beginning in order to avoid falling into an area of dissatisfaction and miss the
benefits of outsourcing.

If there is little research on outsourcing in sense we have defined it, there is abundant literature on the
"make or buy".

Barthélemy

To treat this phenomenon, two approaches are commonly used: the Transaction Costs Theory and the
Resource Theory. The Transaction Costs Theory is the dominant paradigm . It has been used in numerous
empirical studies . The main conclusion of this work is that outsourcing is justified when the level of
contractual risk is low. If the number of empirical studies applying the

Resource Theory is still limited, it is rapidly growing. One of the main conclusions of this literature is that
outsourcing is justified by access to resources and skills that are difficult to develop internally.

[Link] to the issue of outsourcing, the Transaction Cost

Theory, essentially developed by Williamson , is considered by many authors as a "dominant" paradigm

It also constitutes the most applied theoretical approach in the academic works to explain the decision of
outsourcing. The Transaction Costs Theory provides an adequate argument to the major concern of the
company in a process of outsourcing logistics, which is: minimizing production and transaction costs.

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This research presents a proposal for the decision of outsourcing logistics in light of Transaction Costs
Theory. The analysis suggested by this theory allows determining whether specific activities of a firm
shall be performed internally or externally, having resort to the market.
The outsourcing decision is explained primarily through the direct influence of fundamental criteria.

Asset specificity, uncertainty and frequency .

Williamson O.E. defines the transaction as an economic operation consisting of transferring goods and
services through a "technologically separable interface". This transaction entails costs that result from
the "frictions" occurring in the economic system. Williamson calls these costs "transaction costs", and
divides them into three categories: First, information costs, meaning the fees of finding a partner.

Second, fees of negotiating and concluding contracts. Third, fees of control entailed by incompleteness
or a defect in the contract that leads to a possible renegotiation, total or partial, but also opportunity
costs represented by the immobility of certain assets to ensure the compliance with contract terms.

The importance of transaction costs can be an indicator of the decision to outsource. When transaction
costs are low, it is rather recommended to outsource an activity.

Whereas when they are high, it is preferable to carry out the activity internally.

[Link] tools frequently implemented can be used to clarify the issue of outsourcing.

APPLIED

We propose as a first tool, The Resource Theory , that is often discussed as complementary to the TCT. It
determines the factors underlying the competitive advantage of companies . The contribution of this
theory to the analysis of the outsourcing decision lies in taking into account the quality of internal human
resources and capabilities comparatively to those of the providers in the market. The main problem for
companies, who want to separate out certain activities and focus their resources on others, is to
properly define their core business. Four criteria determine whether a resource is behind the core
business, and whether it constitutes a competitive advantage for the company: the value of the
resource, the scarcity of the resource, the inimitability of the resource, and the non-substitutability of
the resource. Accordingly, the RBV treats two major themes that are the core business and the triggering
factors for outsourcing.
On the other hand, and as a second tool, Welch suggests a strategic model for the decision of make or
buy .

The position of the technological process of competitors.