The business today is dominated by change and uncertainty. It is getting more and more global and the increased expectations from the customers’ leads to higher demands on the businesses. The objective of this paper is to identify critical parameters that affect the efficiency of companies’ logistics. The aim is also to investigate which of the logistics parameters should beconsidered before taking sourcing decisions.The paper will review literature within related areas and present a case study performed at acompany within the Volvo group. The conclusion is eleven parameters which are affecting the efficiency in the logistics system and nine should be considered before taking sourcing decisions and they are; delivery capacity, delivery dependability, capacity and technical equipment, total cost, quality, transportation cost, physical distance, flexibility and planning/ steering.