< Back to Logistics Glossary

What Does Outsource Mean?

Understand how Outsourcing fits into the supply chain

To outsource involves hiring a third-party provider to perform a task or handle operations instead of doing them in-house. It is the opposite of insource. As an example, freight management can be outsourced to a logistics provider such as a LLP/4PL or 3PL. Benefits of outsourcing include increased expertise, lower costs, increased efficiency and more.