Supplementary insights: Outsourcing vs. insourcing in European food processing

In Q4 2023 we published a report exploring how changes in energy, labor, customer demand, and sustainability regulations are prompting food processors to reassess their logistics outsourcing strategies to remain competitive. We concluded that there is no clear-cut answer to whether companies should outsource or insource logistics. Each company needs a tailored strategy based on its unique circumstances. For instance, while some companies might outsource to save on operating costs, others might find insourcing more beneficial. The current supplementary note offers additional insights from interviews, showing the diverse drivers behind these decisions. Additionally, the note elaborates on how food processors consider different factors when making logistics decisions for refrigerated transportation and cold storage. It emphasizes the need for continuous re-evaluation of these decisions, especially during times of significant changes in the operating environment.