Logistics Outsourcing Research Articles

Economic evaluation of an outsourced fourth-party logistics under a flexible production system

Competition in the production business is getting harder day by day for the manufacturer and the corresponding retailer of the supply chain. When a supply chain deals with deteriorating products, an efficient production system, and a logistic provider are two important pillars to keep the business profitable. Logistics facility for deteriorating products requires additional attention, especially when deteriorating products require a refrigerate-storage facility. This study investigates the economic evaluation of flexible production and logistics outsourcing for deteriorating products with the help of logistics outsourcing. The retailer outsources logistics facilities through a fourth-party logistics provider. Fourth-party logistics uses reefer shipping to transport deteriorating products to prevent deterioration during transportation. The refrigerant of the shipping container has a random leakage during shipping. In the meantime, the manufacturer uses preservation facility to reduce the random deterioration rate of products. A classical optimization finds the global minimum total cost for a unique solution of decision variables. Results prove that flexible production is very sensitive to machinery systems and fresh products are more cost-effective for transportation than frozen products. The proposed system saves 38.38% of the total cost in comparison with a constant production rate. Sensitivity analysis finds transportation costs of 4PL are the most sensitive parameters of the system.

The Impact of Environmental Factors and Perceived Benefits On Customers' Decisions to Outsource Logistics Services in Vietnam

Objective: The objective of this study is to investigate factors influencing customers' decisions to outsource logistics services in Vietnam, with the aim of evaluating the impact of environmental factors and trust on businesses' decisions to outsource logistics services. Theoretical Framework: In this section, the main concepts and theories that underpin the research are presented. Transaction Cost Economics (TCE), providing a solid basis for understanding the context of the investigation. Method: A quantitative research method was used, with a sample size of 315 selected through random sampling. The research was conducted from March 2024 to July 2024. The collected data was cleaned and processed using SPSS 20.0 software through a survey of 150 individuals with experience and expertise in the logistics field. The purpose was to gather insights and consider decisions regarding outsourcing logistics services. The research model was tested for suitability, including Cronbach’s Alpha reliability test and Exploratory Factor Analysis (EFA). Results and Discussion: The results obtained revealed that environmental factors and trust both have a positive impact on businesses' decisions to outsource logistics services. Research Implications: The practical and theoretical implications of this research are discussed, providing insights into how the results can be applied or influence practices in the field of logistics. Originality/Value: This study contributes to the literature by evaluating the impact of environmental factors, an aspect that has received little attention in the selection of logistics services. The relevance and value of this research are evidenced by referencing previous studies and foundational theories to build the research model.

Evaluating firm resilience through responsiveness and logistics outsourcing in the COVID-19 era

PurposeThis paper aims to investigate how firms can enhance their resilience in response to the disruptions caused by the COVID-19 pandemic. Specifically, the study focuses on assessing responsiveness as an antecedent and logistics outsourcing as a boundary condition to resilience.Design/methodology/approachSurvey data collected from 286 manufacturing firms in Finland during 2021 are analysed to examine the relationships between supply chain responsiveness, logistics outsourcing and resilience.FindingsFirm responsiveness is found to improve resilience, while an increasing level of logistics outsourcing weakens this relationship. Surprisingly, geographic dispersion does not significantly affect supply chain responsiveness.Research limitations/implicationsLimitations of the study include the focus on manufacturing firms in Finland and the reliance on survey data. Future research could explore additional factors influencing resilience and consider a broader range of industries and geographical regions.Practical implicationsThe findings offer valuable insights for managers seeking to enhance their firms’ resilience in the face of disruptions. By understanding the importance of responsiveness and the potential drawbacks of excessive logistics outsourcing, managers can make informed decisions to improve their firms’ ability to cope with unexpected challenges.Originality/valueThis research contributes to the understanding of resilience in supply chain disruptions by addressing fundamental questions related to efficiency, responsiveness, control and complexity. By examining the interplay between responsiveness, logistics outsourcing and resilience, the study enriches the understanding of how firms can effectively navigate unexpected challenges.

The Optimal Logistics Distribution Service Strategy of the E-commerce Closed-Loop Supply Chain Network under Blockchain Technology and the Government Blockchain Subsidy

The booming development of e-commerce has promoted the diversified development of logistics distribution services (LDS). For LDS, e-commerce retailers (e-retailers) often choose either the outsourced logistics distribution services strategy (OLDSS) or the self-built logistics distribution services strategy (SBLDSS). Although there are problems such as products getting lost and damaged during the logistics distribution process, the high transparency and traceability characteristics of blockchain technology (BT) can help solve the problem of products being lost and damaged in the logistics distribution process. However, due to the high cost of BT, e-retailers may encounter reduced sales, which causes the supply chain corporate profits to decrease. To encourage the BT investment enthusiasm of the e-retailers and regulate corporate profits, the government implements subsidies for e-retailers’ BT, namely, the government blockchain subsidy (GBS). In addition, in recent years, environmental degradation has become increasingly severe, causing negative impacts on people’s lives. To promote sustainable development, we use variational inequality to establish an e-commerce closed-loop supply chain (E-CLSC) network equilibrium model in which the network equilibrium decisions of e-retailers choosing the OLDSS and those choosing the SBLDSS are obtained. Then, we analyze the impact of the BT input cost and the GBS quota on equilibrium decisions by studying their properties and verifying the theoretical results by performing numerical examples. Finally, we analyze the profits of the e-retailers to obtain the impact of the BT input cost and the GBS quota on e-retailers’ choice of the optimal LDS strategy; in this way, we provide a scientific basis for e-retailers to choose the optimal LDS strategy. The results show that increasing the BT input costs reduces e-retailers’ product sales under the two LDS strategies, which decreases the production rate and the recovery rate of the products. When the BT input cost is low, SBLDSS is the best choice for e-retailers. When the BT input cost is high, OLDSS is the best choice for e-retailers. Moreover, there is a positive correlation between GBS and e-retailers’ product sales; thus, GBS is conducive to expanding market demand, regulating the profits of manufacturers, increasing the e-retailers’ profits, improving the enthusiasm of the e-retailers for BT investment, and promoting the overall development of supply chain enterprises. For e-retailers, choosing the OLDSS can lead to a better development of the E-CLSC.

VOSviewer Analysis of Studies on Software Selection in the Logistics Sector

Abstract Outsourcing in logistics is an important step to reduce costs and increase operational efficiency. In this sense, it is possible to come across outsourcing in many areas of logistics processes. One of the outsourcing steps is the decision to select the software. Choosing the right software can affect the market share of the organization and the implementation time, effort, and cost. The findings of this research will help the marketing and sales teams of software product companies to develop key points and also enable end users to make informed decisions in selecting software packages for the organization. In this study, the studies in the literature were examined through the Scopus database, and co-citation analysis was performed using the VOSviewer program. As a result of the analysis, the articles analyzed were divided into four clusters and explained.

The role of relationship commitment in managing logistics outsourcing in the digital economy

PurposeDigitalization brings complexity and challenges to the relationship governance between logistics outsourcers and their providers. Drawn on resource dependence theory (RDT) and resource-based view (RBV), this study aims to examine the role of relationship commitment in simultaneously managing dependence and improving operational performance in logistics outsourcing in the digital economy, as well as the contingent factors (i.e. communication, relationship length, and company size) that affect the effectiveness of relationship commitment.Design/methodology/approachBased on data collected from 130 third-party logistics (3PL) users in China, our model was tested with the partial least squares (PLS) approach.FindingsFirst, relationship commitment is necessary for 3PL users to manage dependence on 3PL providers and improve operational performance in the digital economy. Second, communication helps 3PL users to develop higher relationship commitment but weakens the motivating effect of dependence on relationship commitment. Third, a long relationship history develops inertia to diminish the effectiveness of dependence on driving relationship commitment while it boosts the impact of relationship commitment on operational performance. Last, company size is an important signal to amplify the effectiveness of relationship commitment for operational performance enhancement.Originality/valueThis study contributes to the logistics outsourcing literature by integrating RDT and RBV to explain the twofold roles of relationship commitment, simultaneously tackling dependence and enhancing operational performance in the digital economy. Additionally, it expands the understanding of the boundary conditions (e.g. communication, relationship length, and company size) on these twofold roles.

A Decision Support Model for Barriers and Optimal Strategy Design in Sustainable Humanitarian Supply Chain Management

Sustainable humanitarian supply chain (SHSC) management enables effective and efficient responses to natural and human-made disasters. Existing literature falls short of offering decision support (DS) models to address the barriers and strategies to designing SHSC. To this end, this study develops a DS model that identifies and prioritizes the barriers to SHSC and determines optimal strategies for mitigating those barriers. This study adopted both qualitative and quantitative approaches. As part of the qualitative approach, a field study was applied using in-depth interviews to determine the barriers and corresponding strategies, while under the quantitative approach, a quality function deployment (QFD) integrated optimization technique was used to prioritize barriers and determine optimal strategies to mitigate the SHSC barriers. The study found that a lack of contingency planning, the prevalence of corruption and political interference, and a lack of social and environmental awareness are the most important barriers, while logistics outsourcing, supply chain (SC) performance management, and SC flexibility are the most essential strategies. We also found that our DS model is highly flexible and can be adapted under different scenarios, which makes the model applicable to different contexts. This study has a significant contribution to literature and practice. We developed a novel decision model that captured cost savings and leveraged both cost and time savings from interrelated strategies to determine the best optimal strategy while applying QFD-integrated optimization modeling. The paper’s findings will assist humanitarian SC managers in designing an effective, efficient, and sustainable humanitarian SC.

Supply Chain Management Practices and Performance of Public Hospitals in Rivers State, Nigeria

This study explored the influence of supply chain management practices on the operational performance of some public hospitals in Rivers State. The sample frame covered One hundred and Nine (109) hospitals but 58 hospitals were captured within the time covered. The tool of Statistical Package for Social Sciences version 26 were utilized to test the hypotheses based on the Chi-Square & Pearson’s correlation. Hence, our independent variables consist (flexible procurement, supplier selection, logistics outsourcing, medical inventory management, and information technology integration). While, the dependent variable picked on performance measures. The study revealed that there exists a significant relationship between flexible material procurement and hospitals’ performance. Also, supplier selection strategy is related to hospitals’ performance.; inventory management strategy is significantly related to hospitals’ performance. It was concluded that supply chain management could significantly affect public hospitals’ operations if properly managed. This therefore calls for the need for public hospitals to embrace supply chain management by: increasing their capacity through training to efficiently forecast commodity demand, and manage inventory through proper stock codification, good housekeeping, and automation Keywords: Supply chain management; Public Hospitals; Rivers State, material procurement

Examining success factors for logistics outsourcing in Sub‐Saharan Africa

AbstractWith the rapid globalization of business activities, logistics has become incredibly complex and intricate. As such, managing logistics is more challenging than ever. One of the trendy solutions to deal with this challenge is logistics outsourcing. In this regard, Sub‐Saharan African firms are no exception. To help Sub‐Saharan African firms succeed in leveraging logistics outsourcing for their competitive differentiators, this article aims to investigate how the organizational capabilities of third‐party logistics service providers (3PLs) contribute to their users' logistics outsourcing success. Based on an empirical analysis of 211 food processing firms in Uganda, we found that the 3PLs' technological and innovation capabilities positively affected logistics outsourcing success. In contrast, the 3PLs' flexibility and integration capabilities had no bearing on the logistics outsourcing success. In particular, our importance–performance map analysis (IPMA) revealed that the 3PLs' technological capability was the most significant factor in logistics outsourcing success. The article also expounds on how the 3PLs' technical capability can bring logistics outsourcing success.

제3자 물류 기업 활용에 영향을 미치는 공급체인 리스크에 관한 연구

The recent increase in supply chain risk due to global supply chain issues has caused logistics costs such as fuel and labor costs to rise for shipper companies engaged in import and export activities. Therefore, shipper companies are outsourcing logistics activities to third-party logistics providers(3PLP) to manage supply chain risk and solve management problems caused by rising supply chain risk. In addition, as third-party logistics companies have begun to adopt and utilize 4th industrial technologies such as smart warehouses and autonomous driving, it is necessary to examine the relationship between these technologies and firm performance. Therefore, this study categorizes supply chain risks in a logistics uncertainty environment and identifies the causal relationship between risk factors, 3PLP utilization, and firm performance. To conduct the study, a questionnaire was constructed based on previous studies and interviews with current practitioners, and a survey was conducted based on the list of member companies of the Korea International Trade Association, the Association of Small and Medium Venture Businesses, and the Korea Trade-Investment Promotion Agency. The hypotheses were tested using PLS-SEM methodology, and the results showed that among supply chain risks, only demand risk had a significant impact on 3PLP utilization, and 3PLP utilization had a significant impact on shippers' financial performance and logistics performance.

Strategies for Effective Logistics Outsourcing: A Case Study in the Serbian Market

Strategies for Effective Logistics Outsourcing: A Case Study in the Serbian Market

Integrated location and inventory planning in service parts logistics with last-mile delivery outsourcing

Outsourcing last-mile delivery to express companies provides an innovative strategy for capital goods manufacturers to improve service parts logistics. Given delivery dilemma due to geographically dispersed customers and low-frequency uncertain demands, we develop an integrated location and inventory problem with last-mile delivery outsourcing in a two-echelon service parts logistics. The proposed non-linear mixed integer programming model captures important decisions involving (1) location of local warehouses, (2) customer allocation to opened local warehouses, (3) inventory levels at these local warehouses, (4) outsourcing or self-operating last-mile delivery. We then replace service level constraints that cause nonlinearity with two new sets of constraints, and construct a linear mixed integer formulation that could be solved by GUROBI solver for some small-scale problems. It is still a challenging problem for large scale case, for which we propose an adaptive large neighbourhood search (ALNS) algorithm. Our extensive computational experiments verify the effectiveness of our model and algorithm. Computational experiments’ results indicate that outsourcing last-mile delivery amounting to around 12 % total cost savings on average, compared to self-operating in a real-world large instance from our research partner. Furthermore, we test some key parameters with computational experiments, and provide some managerial implications.

Logistics outsourcing strategy with online freight platforms

Online Freight Platforms (OFPs) are emerging and developing rapidly based on the Internet of Things and big data technologies. They provide professional logistics services by aggregating the scattered transportation capabilities of individual truck drivers. OFPs have become increasingly popular compared to Traditional Logistics Service Providers (TLSPs), and OFPs have integrated more than 20% of the truck drivers in China. In this paper, we study a manufacturer’s production, distribution, and transportation of a product in bulk to a downstream firm via two transportation channels: TLSP and OFP. The two channels offer different operational modes, service levels, and contract prices. We develop a game-theoretical model to analyze the strategic interactions among the manufacturer, transportation service provider, and downstream firm. Our study highlights the implications for the manufacturer’s logistics outsourcing strategy with OFP and TLSP operations. We find that when an OFP is available, differences in transportation service levels and prices significantly affect the equilibrium decisions of the manufacturer and TLSP. Surprisingly, the emergence of OFPs does not necessarily threaten TLSP operations. This study provides guidance to manufacturers about their selection of shipping outsourcing strategies and new guidance for TLSP operations considering the emergence of OFPs.

Strategic outsourcing in reverse logistics: Neutrosophic integrated approach with a hierarchical and interactive quality function deployment

The efficiency of strategic outsourcing in reverse logistics (RL) depends on stakeholder requirements (SRs) directing organization development and experts’ knowledge decomposing and reconstructing strategic decision, which urges the adoption of hierarchical and interactive quality function deployment (QFD). Considering the uncertainty within a QFD, single valued neutrosophic number (SVNN) is introduced to capture both indeterminacy and inconsistency hidden in quantitive votes and qualitative judgments of stakeholders and experts. With unknown weight assignments, two maximum deviation models are constructed to obtain the priority of SRs and Shapley weights of experts. An SVNN-enabled grey relational analysis is extended to identify the interdependence priority of engineer characterizers (ECs). Due to the interactions among components such as experts in a group or ECs in QFD, two information aggregation tools under neutrosophic environments are presented based on fuzzy integral delineating the positive or negative effect. Built on these, we propose an integrated neutrosophic approach composed of a transformation module, weight module, integration module and QFD analysis module to support the outsourcing decision. Finally, an illustration example is used to confirm the practicality of the proposed approach. Sensitivity analysis and comparative analysis with multiple views have been conducted to show the flexibility and superiority of the given decision.

Advantages and disadvantages of outsourcing in e-business logistics

Advantages and disadvantages of outsourcing in e-business logistics

Corrigendum to “Logistics Outsourcing in Large Manufacturing Companies: The Case of Slovenia and Lessons from Other Countries”

Corrigendum to “Logistics Outsourcing in Large Manufacturing Companies: The Case of Slovenia and Lessons from Other Countries”

The importance of warehouses in logistics outsourcing: benchmarking the perspectives of 3PL providers and shippers

PurposeAn ever-increasing number of companies outsource logistics activities to third-party logistics (3PL) providers to beat the competition. From the buyer's (shippers') perspective, selecting the right 3PL provider is crucial, and from the 3PL provider's perspective, it is imperative to be attractive and to retain clients. To this aim, a potential lever can be physical assets, such as warehouses, which the literature has traditionally neglected. The objective is to benchmark the importance of warehouses for 3PL providers to attract/retain clients and for shippers to select the right 3PL provider.Design/methodology/approachThe authors performed an empirical investigation through interviews on dyads (3PL providers/shippers) and utilized the Best-Worst Method (BWM) to rank the criteria used in the 3PL buying process and allow the warehouse's role to emerge.FindingsResults show that the 3PL buying process consists of four phases and three evaluation steps. The selection criteria are classified into three groups: order qualifiers, order winners and retention factors. The warehouse has different levels of importance throughout the process. It appears that it can indirectly enhance the attractiveness and retention capability of 3PL providers through other selection criteria.Originality/valueBy combining the resource-based view and the customer value theory, this research extends the theory on logistics outsourcing by studying the phases of the 3PL buying process and scrutinizing the criteria used in different evaluation steps. The research adds a double perspective of analysis (3PL providers and shippers), which is missing in the literature, and focuses on the importance of warehouses.

중국 인터넷 전자상거래의 물류아웃소싱 협력관계가 물류성과에 미치는 영향 연구

This study focuses on increasingly competitive Chinese e-commerce enterprises and explores the impact of logistics outsourcing partnerships on service expansion and logistics outcomes in supply chain strategy. The research results show that among the determining factors of logistics outsourcing, reducing costs will affect the improvement of service levels in addition to traditional functions, as well as considerations for the use and compatibility of information systems (+). Among the determining factors of logistics outsourcing, the improvement of service level and the utilization and compatibility of information systems have a positive (+) impact on the level of logistics outsourcing. In addition, besides traditional functions, all other functions in the outsourcing level have a meaningful impact on logistics efficiency and effectiveness. In the context of logistics outsourcing decisions, cost reduction has been confirmed as an extremely critical factor. Companies should focus not only on outsourcing traditional logistics functions but also on improving service levels and enhancing the utilization and compatibility of information systems to achieve cost savings. The effective utilization of information systems and compatibility are key elements in elevating the level of outsourcing. Companies need to develop and enhance their ability to effectively use information systems while maintaining compatibility with other systems, which contributes to increased efficiency in logistics management. Furthermore, this underscores the importance of viewing outsourcing as a strategic tool rather than just a means for cost reduction, allowing companies to gain a competitive edge. To achieve the best results, a comprehensive approach that considers both traditional functions and service-related aspects, along with information system functionalities, is necessary. Such an integrated approach is expected to enhance the level of logistics outsourcing and optimize logistics performance.

Generational cohorts’ social media acceptance as a delivery tool in sub-Sahara Africa motorcycle industry: The role of cohort technical know-how in technology acceptance

Scholars have explored the applicability of social media technology in diverse fields. However, its significance as a delivery tool in the sub-Saharan Africa (SSA) motorcycle industry lacks literature. Motorcycles for product delivery are one of SSA's largest informal employments to generational cohorts. Motorcycles are crucial for product mobility and passenger conveyance in SSA, and it is currently the most outsourced logistics that drive the SSA online commerce ecosystem. With the financial challenges of the SSA motorcycle industry, generational cohorts of this economic sector have adopted social media technology for delivery purposes. Even though this phenomenon is realized among the predominated Generation (Gen) X, Y, and Z, no research has explored the area. However, motorcycle studies are based on actors, organizations, politics, forms of service regulation, safety, health, environmental impacts, and spatial patterns, creating a significant gap in social media adoption, usage, and importance. Therefore, the study aims to assess the effects of the factors influencing the recent adoption of social media technology for delivery operations and the difference in social media acceptance and application between Gen X, Y, and Z in the SSA motorcycle industry using the Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB). The novel findings show the theoretical extension of the adopted theories by introducing cohorts' technical know-how (TKH), which positively influences cohorts' social media adoption and application. It also confirms the differences in generational cohorts' technology intelligence and acceptance. Generally, perceived usefulness, perceived ease of use, subjective norms, perceived behavioral control, and attitude influence generational cohorts to adopt social media for delivery purposes. Cohorts' perceived risk was insignificant, and the predictors of the TAM and TPB model partially mediate the positive relationship between TKH and intention to use social media as a delivery tool. The study's findings have theoretical and business implications, which are discussed in detail in the conclusion. But generally, the findings will service as a guide for logistics companies to integrate a cost-effective technology into their system. It will help policymakers of the various African states to revise the ban on motorcycle usage for commercial purposes.

Logistics outsourcing for armed forces: The mobilisation of civilian transportation vehicles

One aspect of the total defence concept involves the temporary requisition of civilian transportation vehicles to meet the increased logistical demands of a wartime army. These vehicles are selected and managed in peacetime, mobilised at the onset of the war, used by military units throughout the war, and returned to their original owners afterwards. This paper presents a model for the reception process of such civilian vehicles during mobilisation. In practice, however, reception processes are not without challenges. Under the time constraints of mobilisation, issues may arise, including inappropriate reception, missed deadlines, and compromised operational readiness. To investigate these issues, the study employs conceptual modelling, supplemented by insights from professional experience. The main contributions of this paper include a conceptual model of the mobilisation process, a framework for maintaining records of mobilised assets, and a focus on previously underexplored mobilisation issues. Proper reception of mobilised vehicles significantly affects the transportation capability and operational readiness of military units as well as the accuracy of the post-conflict return process. Implementation of the proposed solutions requires careful consideration due to interdependencies with other aspects of the mobilisation process, such as doctrinal arrangements, administrative systems, mobilisation procedures as well as the quality and regularity of both professional and reservist military training.