The Determinants of Logistics Efficiency in Malaysia

Abstract

Purpose - The purpose of this paper is to study the determinants of logistical efficiency in Malaysia. To achieve logistic efficiency, trust between supplier firms and buyer firms can be done through three supply chain collaboration dimension which are joint decision making, information sharing, and benefit/risk sharing.Design/methodology/approach - For this study, the data are collected from Malaysian firms through a mail survey. The survey was answered by the logistics/supply chain managers who are responsible for outbound supply chain supplier and buyer firms from various work function. The data gain then will be tested and analysed using statistical software or SPSS and regression.Findings - Joint decision making and information sharing has a significant influence on the logistics efficiency with positive relationship, whereas benefit/risk sharing also have a significant influence on the logistics efficiency but negative relationship.Originality/value - This paper is unique as it is the first research paper that study on logistics efficiency between 100 Malaysia’s firms. This paper also analyses the causal effect of joint decision making, information sharing and benefit/risk sharing on the logistical efficiency.Practical Implications - For supply chain practitioners, the results indicate that firms benefit greatly if they consider supply chain collaboration in their supply chain and that such a matching yield to improve the logistical efficiency.