The use of outsourcing logistics activities: The case of turkey

Abstract

PurposeThis research aims at analyzing logistics services from the viewpoint of companies who are already outsourcing their logistics services and others who currently fulfill their logistics needs in-house. Design/methodology/approachThis study is based on a descriptive research model; the population consists of all top 500 companies registered with industrial associations and chambers of commerce in Turkey. A structured survey was selected as a tool for data collection. A total of 287 companies responded to the survey with a 58% response rate. 204 of these companies were outsourcing logistics services at the time the interview was conducted whereas the remaining 83 were keeping the logistics function in-house. The people interviewed in the survey were logistics managers of the firms. FindingsFindings include the types of logistics services outsourced and planned to outsource, problems encountered in outsourcing these services, logistics costs, decision makers in outsourcing logistics activities, and information sources used in the decision-making process. Moreover, a decision support system based on Bayesian Causal Map is proposed for 3PLs in order to assist them in their service proposals for different sectors. Originality/valueThis study is a first attempt to reveal and compare the outsourcing perception of the companies in different sectors, to expose the firms’ underlying motives as well as the respective importance of these motives for outsourcing logistics activities in Turkey. The use of Bayesian Causal Map based on the survey results provides an important guide to the 3PL providers to pick a suitable strategy and to prioritize their operational activities in different sectors in such a way to achieve a competitive advantage.