Outsourcing Of Logistics Services Research Articles

A systematic literature review of logistics services outsourcing

Logistics is critical in every company's supply chain (SC), and outsourcing helps businesses concentrate on their core competencies. Third-party logistics (3 PL) or logistics service providers (LSPs) assist businesses in cutting costs while improving performance, sustainability, and revenue. Logistics evaluation and LSPs choice are complicated and critical components of value delivery. This study aims to review logistics outsourcing literature to understand the trends, prospects, factors, and strategies used in logistics companies' outsourcing choices. This work examines the literature on LSPs selection published between 2010 and 2023. This paper uses VOSviewer (version 1.6.19) to visualize the relationships. Pricing, timely shipment, service quality, reliability, agility, technology, and consumer feedback are the most commonly utilized, whereas societal and environmental factors are seldom used. The study comprises journal publications, the year, selection criteria, and assessment methodologies. Numerous scholars have discovered and employed many critical selection criteria. Many investigators have also embraced multi-criteria decision-making (MCDM) methodologies, and their fuzzy form is widely used. In conclusion, recommendations for theorists and managers, limits, and future directions for research are offered.

The Transport and Logistics Services Market and the Quality Parameters of the Transport Service

In today's conditions of uncertainty, the role of transport and logistics is especially important. Increasing competition among companies and countries requires cost reduction. Most of the time of goods’ movement from the primary source of raw materials to the final consumer is associated with its movement along the supply chain, in which various logistics intermediaries take part. In this regard, under these conditions, it seems relevant to study the market of transport and logistics services (TLS) and the parameters of the quality of service on it. The purpose of this work is to study the segments of this market, both globally and in Russia. The article analyzes the structure of the Russian market of transport and logistics services, outlines its main trends that are observed in the current situation, gives a rating of the main world and Russian transport and logistics companies and transport companies in Irkutsk. The study showed that the problems of the functioning of the Russian market are the low share of the complex and management logistics segment in its structure, insufficient use of outsourcing, high depreciation of rolling stock, insufficient information support for the delivery process, decrease in demand for transportation from Europe to Russia, underload of railway transport, which leads to ultimately disrupting the supply chains of goods. The following ways of solving the identified problems are proposed: development of rail transportation between the Russian Federation and China; use of groupage cargo delivery; providing outsourcing of logistics services; application of electronic document management; increase in the share of 3PL level logistics providers in the Russian TLS market.

ДО ПИТАННЯ ФУНКЦІОНУВАННЯ ЛАНЦЮГА ПОСТАЧАННЯ В АСПЕКТІ АУТСОРСИНГУ І ЛОГІСТИЧНОГО ОПЕРАТОРА

The article reveals the relevance of using new approaches to managing the processes of supply, production and marketing of final products based on the concept of supply chain management with the involvement of outsourcing elements. The main reasons that motivate enterprises to use outsourcing are highlighted. The main types of outsourcing of logistics services are presented and its advantages and disadvantages are outlined, with an emphasis on the key elements of outsourcing and the involvement of representatives of the logistics environment in this process. The practical aspect of outsourcing through service providers: logistics operators of different levels is revealed. Special attention is focused on third-level logistics operators, with a comprehensive delineation of the services they provide. The factors exerting a significant influence on the cost structure of logistics operator services are presented. Additionally, the components of an advanced infrastructure aimed at providing high-quality services are elucidated. The article outlines a number of reasons that impede the active development of outsourcing in Ukraine, while emphasising the positive elements of its use in Western Europe. However, despite the consequences of the pandemic and military operations in Ukraine, the author identifies a number of logistics operators that successfully operate in the market. In particular, the logistics operator Nova Poshta, which provides a wide range of logistics services (cargo delivery, courier services, express delivery), has a number of positive aspects: a wide network of branches (more than 200 thousand branches throughout Ukraine, operates in several European countries), developed logistics infrastructure (has its own vehicle fleet, warehouses and other logistics facilities), innovative technologies, experienced staff (quality customer service). The report also describes the activities of logistics operators Deliveri and Raben, which managed not only to maintain their competitive positions but also to increase cargo turnover compared to the previous period due to favourable tariffs, quality service, and safety. The article underscores the essential role of logistics operators in providing critical support during times of military conflict within Ukraine.

Outsourcing of logistic services in Polish e-commerce stores

Purpose: The aim of the article is to present the issues of outsourcing logistic services in Internet commerce companies. Design/methodology/approach: The article is based on an analysis of the literature on the subject and reports, as well as the presentation of the author's own questionnaire research. Findings: Own research has shown that the outsourcing of logistics activities in Polish online stores is still not very popular. For several years, the percentage of companies using the services of external companies as part of logistics has been at the level of 10%. Research limitations/implications: The issues require further research, mainly in order to define the reasons why companies decide to carry out activities in the area of logistics on their own. It would be advisable to analyze and compare the costs of logistics activities in detail in the case of outsourcing and in the case of carrying out these activities on their own. Practical implications: From the practical point of view, the presented analyzes can be used by companies offering their services as part of logistics for electronic stores, so that their offer is better suited to the specificity of e-stores. Originality/value: The article is addressed to academics and students, but also to entities operating in the logistics industry - mainly companies offering fulfillment. The work presents the current results of original research and compares them with data from previous years, which allowed to indicate the trend in the development of logistics services outsourcing in the e-commerce industry. Keywords: logistics outsourcing, fulfilment, logistics services, e-commerce. Category of the paper: Research paper.

The Optimal Combination between Recycling Channel and Logistics Service Outsourcing in a Closed-Loop Supply Chain Considering Consumers’ Environmental Awareness

In the closed-loop supply chain, many suppliers opt for self-recycling or entrust retailers to recycle. Under both recycling channels, the member responsible for recycling can undertake or outsource logistics services. This paper investigates how consumers’ environmental awareness and recycling cost-saving affect the optimal combination of recycling channel and logistics-service strategy. To this end, we mathematically formulate the supplier-led Stackelberg game theoretical-framework, and apply the Karush–Kuhn–Tucker conditions for constrained optimization. We examine the optimal combination under the impact of consumers’ environmental awareness and recycling cost-saving on profits, environmental impact and social welfare, using numerical analysis. Results demonstrate that as consumers’ environmental awareness and recycling cost-saving remain at a higher level, the supplier and retailer will both achieve maximum profits when the supplier entrusts the retailer to recycle and the retailer undertakes the logistics services. Meanwhile, the third party will choose to be entrusted with services by the supplier, rather than the retailer. To improve supply-chain performance, the retailer should assume social responsibility to recycle and build the logistics-service system.

Technology management in multi‐tier chains: A case study of agency in logistics service outsourcing

AbstractShippers and logistics service providers implement information communication technology (ICT) in outsourced logistics to increase efficiency and remedy information asymmetry. However, the nature of outsourced logistics operations can create technology management challenges due to the organizational distances between the technology initiator and the technology users. Here, we apply the lens of positivist agency theory to study four cases of technology management and agency in multi‐tier outsourced logistics services. Our findings suggest that while ICT remedies some information asymmetry, it also creates new information asymmetry—and gives rise to user privacy concerns. Furthermore, the setting of multi‐tier subcontracted logistics services appears to be a critical factor in designing governance mechanisms for effective technology management. In addition to our theoretical contributions to technology management in multi‐tier outsourcing, we offer an empirical account of agency, proposals for future research, and practical suggestions to help managers tackle agency issues that arise from information asymmetry.

State and Development of Transport Logistics under Current Conditions

The pandemic and the sanctions imposed on the Russian Federation have completely changed the way transport logistics functions. In this regard, it is relevant to study the current state and development of transport logistics under these conditions. The article is aimed at studying goods transportation and destinations both around Russia, in general, and around the Irkutsk region, in particular. The article analyzes the state of transport logistics in the Russian Federation and in the Irkutsk region, outlines the main trends in transport logistics observed in the current situation. The study showed that the functional issues of transport logistics in the country are as follows: delays in delivery of goods, additional customs control of goods, increased time for clearance of goods, rising fee rates for container transportation, a lack of transportation capacity, rising tariffs. All of these ultimately result in disruptions in the supply chains of goods. The following ways of solving the identified problems are proposed: spreading regional centers in the European part of Russia across regions of the country; providing outsourcing of logistics services; applying electronic consignment note and improving digital services; increasing the share of the Russian railways in the Eurasian international transport market; strengthening competitive advantages of railway transport in relation to other means of transport and foreign carriers; attracting transit cargo flows to the Russian railway network.

Creating Valuable Relationships with Third-Party Logistics (3PL) Providers: A Multiple-Case Study

Background: Logistics service outsourcing in recent years has influenced the evolution of third-party logistics (3PL) providers across the globe. The study explored the evolving services of 3PLs and relational factors that influence the relationship with their customers. Methods: Qualitative research and multiple case studies from four different industries were used. Semi-structured interviews were adopted. Results: The findings show that aside from logistics and warehousing the customer expects 3PLs to create value through more decision-making responsibilities, such as managing the customer’s relationship with 3PLs, and customised services that will make them competitive. Furthermore, the results showed that to achieve relationship performance, trust must be collaborative from the start, which increases information sharing and leads to an improved relationship performance. Conclusions: Consistent performance increases commitments from both partners. Implications, limitations and future research suggestions are provided.

Економічна оцінка аутсорсингу: інформаційні та логістичні послуги

The aim of the article. The main purpose of the study is to develop scientific, methodological and practical provisions for the formation of organizational and economic dominants, which become one of the main factors in ensuring the rational logistics and information support of production activities of enterprises and organizations. Analyses results. Theoretical and methodological issues of outsourcing as an economic category are considered. A system of indicators has been developed, the use of which largely determines the value of the economic effect when using information and logistics technologies in the production and commercial activities of industrial enterprises. These include indicators of direct action (the effect of using outsourcing, which is directly related to a particular function or business process) and indicators of indirect action (the effect of using outsourcing is not directly related to this function). To calculate the factors of economic effect, which determines the feasibility and effectiveness of the use of outsourcing of logistics services and information technology, a method of synthesis of economic efficiency factors is proposed. This approach significantly expands the possibilities of economic evaluation of the rational use of outsourcing services in production and commercial activities and allows you to more accurately and objectively assess its benefits in the use of outsourcing services and information technology. The methodological approach to evaluating the effectiveness of outsourcing management information systems in real business enterprises is quite universal, as it takes into account the conceptual principles of outsourcing, on the one hand, and allows to adapt the structure of efficiency evaluation depending on the complexity and cost of work. technologies used in business. enterprise, goals and scope of outsourcing. Conclusions and directions for further research. The use of the proposed guidelines in the practice of production and commercial activities of industrial enterprises allows ensuring an important link between the processes of development, distribution and use of information and logistics technologies and their required quality. Studies conducted at enterprises in the Kharkiv industrial region showed that only three of the eight surveyed enterprises have economic grounds for the use of outsourcing. Other enterprises are more expedient from the economic point of view to carry out information (logistical) support of the activity by own forces. Based on this, we consider as a direction of further development and research to develop guidelines for detailing these indicators in order to identify their components, to which the outsourcing company needs to pay special attention.

Logistical outsourcing as an effective enterprise activity mechanism rising

The purpose of the article is to substantiate logistics outsourcing as an effective mechanism for improving the efficiency of the enterprise.
 The authors summarize the arguments and counterarguments in the scientific discussion on logistics outsourcing as one of the best methods of optimizing resources in the activity of enterprises, one of the important factors of modern business. Systematization of the results of the research of scientific sources made it possible to identify the problems of outsourcing use in various spheres of activity of economic entities. Systematization of studies of aspects of enterprise management based on logistic approaches has allowed formulating the statement that special value all over the world in logistics is devoted to outsourcing. For many years there is a tendency in this area to transfer a part or all of the logistics functions to specialized companies and outsourcing of logistics services is used by the vast majority of enterprises. Because, as higher the level of consumption in the country, there is more need to involve in the supply chain the goods of qualified logistics operators and transfer part of their operations to logistics outsourcing.
 The authors estimate the logistic outsourcing of the enterprise of PE “VEGA LTD” for the method of Yu. Zhelinskiy, which combines the change of income and expenses of the enterprise. Based on the calculations, it is proved that outsourcing for PE “VEGA LTD” is profitable. Therefore, it is advisable to use outsourced services not only for transport logistics but also for other logistic activities of the enterprise.
 In the process of investigating the problems of logistics outsourcing and its impact on the efficiency of foreign economic activity of the company, the authors proved that outsourcing in logistics is one of the most modern business models. The use of this approach makes it possible to achieve significant competitive advantages in the activity of the enterprise. The main motives that drive outsourcing of logistics functions are the desire to make the business manageable, reduce transaction costs while obtaining quality service and profit. The results of the study are of practical importance and may be useful to scholars interested in the study of logistical outsourcing, as well as to the enterprises where outsourcing is most commonly used.

Logistics service outsourcing choices in a retailer-led supply chain

Motivated by the practice, we investigate logistics service outsourcing choices in a retailer-led supply chain where the retailer offers logistics service by itself or outsources it to a third party logistics service provider. Results show that offering logistics service by the retailer is not always the optimal choice although it alleviates the double marginalization effect. Regarding the value of cost-sharing contracts in such a supply chain, we find that a variable cost sharing contract benefits the retailer but hurts the logistics service provider. When a part of fixed cost is shared by the retailer, a win–win outcome will be achieved.

Logistics Models in E-Commerce

Abstract The rapid development of digital technology and its applications in almost all business areas has resulted in the emergence of new terms such as e-supply, e-administration, e-CRM, e-sport, m-commerce etc. This paper describes one of the logistics models in e-commerce based on outsourcing of logistics services, i.e. dropshipping. Presented are logistics processes in e-commerce, various logistic models, applied IT technologies and innovations, as well as principles of functioning and determining marketing methods for this type of trade. The research was conducted on the example of an online store selling toys and children’s articles, which operated on the market based on the dropshipping model. A comparative analysis of the dropshipping warehouse offer was the main part of the research.

Promoting synergistic innovation in logistics service outsourcing

PurposeThe purpose of this study is to explore what is synergistic innovation in the logistics service outsourcing context and how this strategy can potentially benefit an organization by improving performance outcomes.Design/methodology/approachA total of 21 in-depth interviews were conducted to conceptualize the construct of synergistic innovation. In addition, a theory-based model is tested using data collected from 282 Chinese manufacturing firms that are currently engaged in logistics service outsourcing.FindingsThe results from the in-depth interviews reveal that synergistic innovation goes beyond just interactions on innovation but requires both parties to achieve synergies that otherwise cannot be achieved by individual party alone. In addition, the empirical analysis suggests that synergistic innovation can help firms improve both logistics service performance and market performance. This process is dynamic as knowledge integration capability influences the outcomes of synergistic innovation.Originality/valueThis study is among the first to conceptualize synergistic innovation. It also offers a practical scale that helps future studies effectively measure this construct. Moreover, the results of this study provide compelling insights into how managers can use logistics service outsourcing as an important source for improving innovation outcomes.

Outsourcing of Logistics Services by SMEs in India

Outsourcing of logistics services to logistics service providers (3PL) is a common practice in business world. The key criteria for choosing 3PL are user compatibility, cost of services, service quality, organisation's reputation, long-term relationships, financial performance, market share, geographical distribution, range of services, flexibility of operations and delivery. This research focuses on SMEs (manufacturers and exporters) from different industrial sectors in the NCR region. The purpose is to investigate the present extent of using the 3PL services by SMEs, to understand the reason for outsourcing the logistics services and also to study the impact of using 3PL services. Results indicate a lack of understanding about logistics outsourcing in SMEs and also they are not fully aware of other logistics functions which can be outsourced to gain strategic advantage and cost reduction. The study demonstrates that logistics outsourcing is a strong mechanism that can be harnessed to empower the SMEs.

Outsourcing of logistics services by SMEs in India

Outsourcing of logistics services by SMEs in India

Outsourcing of Logistics Services As a Key Element of Strategic Management in an Enterprise

Outsourcing of Logistics Services As a Key Element of Strategic Management in an Enterprise

EFFECT OF PROCUREMENT OUTSOURCING ON PERFORMANCE OF KENYA AIRWAYS LIMITED

Purpose: The study sought to establish the effects of procurement outsourcing on performance of firms in the airline industry in Kenya with a focus on Kenya Airways Limited. The study specifically looked at the effect of purchasing functions outsourcing, transport and logistics services outsourcing, warehousing services outsourcing and procurement information systems management outsourcing on performance of firms in the airline industry with a focus on Kenya Airways Company Limited.Methodology: The study was guided by Transaction Cost Theory, SCOR Model, the Principal Agency Theory and Resource Dependency Theory. A case study was adopted in the study as a research design and targeted 75 employees in procurement and logistics departments at Kenya Airways Company departments. The study adopted a census technique with respect to the unit of analysis which was Kenya Airways Company Limited. The study used both descriptive as well as inferential statistics for analysis. Descriptive statistics of frequency distributions, percentages and frequency tables were used while inferential statistics of correlation and regression analysis were employed using SPSS version 24.0 to establish the relationship between procurement outsourcing practices and performance of firms in the airline industry.Results: The findings of the study revealed that purchasing functions outsourcing, transport and logistics services outsourcing, warehousing services outsourcing and procurement information system management outsourcing positively and significantly affect performance of firms in the airline industry.Contributions to policy and practice: The study recommends that Kenya Airways Limited should focus on outsourcing purchasing functions since the practice positively and significantly affects performance of the firm. The study also recommends that Kenya Airways Limited should enhance transport and logistics outsourcing since the practice positively and significantly affects performance of the firm. The study further recommends that Kenya Airways Limited should promote outsourcing of warehousing services since the practice positively and significantly affects performance of the firm. The study finally recommends that Kenya Airways Limited should enhance outsourcing of procurement information system management since the practice positively and significantly affects performance of the firm.

EFFECT OF PROCUREMENT OUTSOURCING ON PERFORMANCE OF KENYA AIRWAYS LIMITED

Purpose: The study sought to establish the effects of procurement outsourcing on performance of firms in the airline industry in Kenya with a focus on Kenya Airways Limited. The study specifically looked at the effect of purchasing functions outsourcing, transport and logistics services outsourcing, warehousing services outsourcing and procurement information systems management outsourcing on performance of firms in the airline industry with a focus on Kenya Airways Company Limited.Methodology: The study was guided by Transaction Cost Theory, SCOR Model, the Principal Agency Theory and Resource Dependency Theory. A case study was adopted in the study as a research design and targeted 75 employees in procurement and logistics departments at Kenya Airways Company departments. The study adopted a census technique with respect to the unit of analysis which was Kenya Airways Company Limited. The study used both descriptive as well as inferential statistics for analysis. Descriptive statistics of frequency distributions, percentages and frequency tables were used while inferential statistics of correlation and regression analysis were employed using SPSS version 24.0 to establish the relationship between procurement outsourcing practices and performance of firms in the airline industry.Results: The findings of the study revealed that purchasing functions outsourcing, transport and logistics services outsourcing, warehousing services outsourcing and procurement information system management outsourcing positively and significantly affect performance of firms in the airline industry.Contributions to policy and practice: The study recommends that Kenya Airways Limited should focus on outsourcing purchasing functions since the practice positively and significantly affects performance of the firm. The study also recommends that Kenya Airways Limited should enhance transport and logistics outsourcing since the practice positively and significantly affects performance of the firm. The study further recommends that Kenya Airways Limited should promote outsourcing of warehousing services since the practice positively and significantly affects performance of the firm. The study finally recommends that Kenya Airways Limited should enhance outsourcing of procurement information system management since the practice positively and significantly affects performance of the firm.

Розвиток транспортно-логістичних кластерів в транспортній системі регіону

Transport and logistics clusters are aimed at optimizing the movement of freight flow in regional supply chains and concentrate the transport and logistics infrastructure of the territory, transport and logistics companies, manufacturing enterprises. The purpose of the article is to study the structure, factors and conditions of creation of transport and logistics clusters at the regional level in accordance with this approach. An example of Germany’s transport and logistics cluster «Frankfurt am Main» is considered. The content of the cluster approach is considered. Cluster benefits are provided. The main participants of the transport and logistics cluster are considered. The model of formation of transport and logistics cluster at regional level is presented. The main tasks of forming a transport and logistic cluster are determined. In-fluence factors on the formation of transport and logistics clusters are generalized: consistent state eco-nomic policy, globalization of transport and logistics infrastructure, horizontal integration of the logistics infrastructure complex and the companies that serve it, outsourcing of transport and logistics services, forecasting and minimizing the level of risk. The directions of the analysis for understanding the weak-nesses and strengths of the region for the formation of cluster structures are determined. Prospects of crea-tion of transport and logistics cluster in Kherson region are considered and its structural elements are defined. The content of the cluster is considered. The activity of the transport and logistics cluster of the region promotes the use of innovative poten-tial through the creation of an efficient transport complex. The cluster maximally takes into account the effect of the market mechanism. The cluster approach is one of the most advanced industry management technologies. Keywords: transport and logistics system; transport and logistics cluster; region; transport infra-structure; cluster approach.

Логістичний аутсорсинг в Україні: стан та собливості розвитку.

The article defines the concepts of «outsourcing» and «insourcing», identifies the main types of outsourcing. Outsourcing and insourcing are characterized by a comparative method. It has been determined that outsourcing of logistics services represents a particular trend in Ukraine. This is due to the presence of significant traffic flows and the complexity of production. Five levels of contract logistics are highlighted. The structure of the Ukrainian market of logistics intermediaries is determined. Characteristic for it is the presence of small companies that narrowly specialize in solving local problems. The Logistics Performance Index (LPI) of different countries is considered, which is used to analyze the state of the logistics service in the country. The types of logistics outsourcing for which there is the greatest demand in Ukraine are generalized. The positive consequences of using outsourcing and disadvantages are highlighted.