Outsourcing Logistics Services Research Articles

Exploring logistics service providers for small and medium-sized enterprises and large corporations: benefits and challenges

Purpose The purpose of this study is to examine the benefits and challenges of using logistics service providers (LSPs) for small and medium-sized enterprises (SMEs) and large corporations. Design/methodology/approach This study uses the focus group interview method with eight LSP companies of varying sizes in the UAE. The aim is to obtain detailed insights into the advantages and obstacles associated with using LSPs. Findings The interview results reveal differences in the services and payment options offered by large and small-medium-sized LSPs, leading to varying impacts on SMEs. Additionally, both large and small-medium-sized LSPs encounter challenges in delivering services to SMEs, including sustaining logistic excellence in a competitive market, meeting the high customer expectations from SMEs and large enterprises, difficulty in recruiting skilled and competent employees and high costs of business technology. Research limitations/implications This study is limited to the UAE context and the perspectives of eight LSP companies. The findings may not be generalizable to other regions or industries. Practical implications The findings of this research provide valuable insights for SMEs and large corporations considering the use of LSPs. Understanding the benefits and challenges associated with outsourcing logistics services can assist in making informed decisions and developing effective collaborations with LSPs. Originality/value This research contributes to the existing literature by specifically examining the benefits and challenges of using LSPs for SMEs and large corporations. This study provides a comprehensive analysis of the factors that influence logistics outsourcing decisions and highlights the unique challenges faced by LSPs and SMEs in the context of the UAE.

THE MEDIATING EFFECT OF SOFTWARE SOLUTION IN LOGISTICS SERVICE

This study aims to investigate the role of software solutions and outsourced logistics service providers in the logistics industry in India. The logistics industry in India is a significant contributor to the country's economy, and with the growth of e-commerce and the increasing demand for timely and efficient delivery of goods, the industry has seen significant transformations in recent years. This case study will provide an overview of the Indian logistics industry and the challenges faced by logistics companies in the country. It will then examine the role of software solutions such as transportation management systems (TMS), warehouse management systems (WMS), and supply chain management (SCM) systems in streamlining logistics processes and reducing costs. The study will also analyze the role of outsourced logistics service providers in offering a range of services, including transportation, warehousing, inventory management, and order fulfillment, to businesses operating in the logistics industry in India. The case study will provide examples of companies that have successfully implemented software solutions and outsourced logistics services to improve their logistics operations and gain a competitive advantage in the market. The study aims to demonstrate the benefits of adopting software solutions and outsourcing logistics services for businesses operating in the logistics industry in India. The findings of the case study can provide valuable insights into the role of software solutions and outsourced logistics service providers in the Indian logistics industry and their impact on the industry's growth and competitiveness.

THE MEDIATING EFFECT OF SOFTWARE SOLUTION IN LOGISTICS SERVICE

This study aims to investigate the role of software solutions and outsourced logistics service providers in the logistics industry in India. The logistics industry in India is a significant contributor to the country's economy, and with the growth of e-commerce and the increasing demand for timely and efficient delivery of goods, the industry has seen significant transformations in recent years. This case study will provide an overview of the Indian logistics industry and the challenges faced by logistics companies in the country. It will then examine the role of software solutions such as transportation management systems (TMS), warehouse management systems (WMS), and supply chain management (SCM) systems in streamlining logistics processes and reducing costs. The study will also analyze the role of outsourced logistics service providers in offering a range of services, including transportation, warehousing, inventory management, and order fulfillment, to businesses operating in the logistics industry in India. The case study will provide examples of companies that have successfully implemented software solutions and outsourced logistics services to improve their logistics operations and gain a competitive advantage in the market. The study aims to demonstrate the benefits of adopting software solutions and outsourcing logistics services for businesses operating in the logistics industry in India. The findings of the case study can provide valuable insights into the role of software solutions and outsourced logistics service providers in the Indian logistics industry and their impact on the industry's growth and competitiveness.

Ekol Ukraine: transformation and growth

Learning outcomes Students comprehend the importance of the transformational idea and apply it in their leadership. Students can analyze how to spread the transformational idea across the team and the organization. Students understand the value of working with different stakeholders (partners, headquarters). Students can analyze the role of focusing on a client and apply client-centric way of thinking. Students can apply the concept of the transformational idea to create (synthesize) possible solutions for the presented dilemma. Case overview/synopsis This case tells the transformation story of the logistics company Ekol Ukraine, which began in 2013. This company was the most successful branch of Ekol Logistics, an international corporation operating in 13 countries. From 2013 till 2021, Ekol Ukraine experienced a crisis related to the start of a conflict between Ukraine and Russian militants. It proved its ability to cope with challenges, gained almost complete autonomy from the head office, transformed the business model and culture and achieved considerable success in building an ecosystem. Having this stage of transformation completed by 2021, the company reached a plateau and had to decide what the following changes would be. In 2021, only 14% of Ukrainian businesses used outsourcing logistics services (like the ones Ekol Ukraine provided). The remaining 86% had in-house logistics and were not ready to change the model. So, Ekol Ukraine faced a problem: how could a logistics provider grow in a market that was not mentally ready to outsource? Complexity academic level MBA programs. Supplementary materials Teaching notes are available for educators only. Subject code CSS 7: Management science.

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.

Logistics Service Providers in Central Vietnam: Current Status and Strategies for the Future

The trend of globalization leads to an increased need for international freight transportation and accelerates the development of the global logistics industry. This paper aims to study logistics service providers' current status and strategies in central Vietnam. The study data sample was collected through a questionnaire form, responded by 488 companies outsourcing logistics services. The findings indicate a direction for the Central Vietnam authorities to follow in implementing the ideal investment prioritization and the appropriate regulations for improving its logistics industry. This study enriches the literature by investigating logistics study's current status and prospects in a transitional economy. It also offers invaluable information and implications for local providers, government authorities, and foreign logistic service providers interested in Central Vietnam's logistics industry.

Improving logistics supplier selection process using lean six sigma – an action research case study

Purpose Outsourcing logistical activities have become a widely used approach for firms to avoid high fixed costs and heavy investment requirements and to achieve competitive advantages. Lean six sigma (LSS) has been accepted globally across sectors as a management strategy for achieving process excellence. The purpose of this paper is to feature the application of LSS for improving the supplier selection process (SSP) of outsourced logistics services in a multinational health-care company. Design/methodology/approach This study is based on an action research case study conducted on the SSP of the freight and distribution department in a multinational health-care company. This paper reports on the application of the LSS define-measure-analyze-improve-control (DMAIC) approach for reducing supplier selection lead time. Findings The study features a real-world case study of the LSS DMAIC application to improve the supplier selection process of a large health-care company. The key issues that were identified are lack of information visibility, top-down changes and unclear communication lines. To counteract these three root causes, the lean six sigma techniques that are implemented are the 5S, stakeholder analysis and standard operating procedure. Research limitations/implications This research provided empirical evidence of how practical challenges in SSP can be managed with the use of LSS. It further proposed plausible solutions for reducing and sustaining improved outcomes. As the study is limited to one case, the validity of the results can be improved by including more organisations and more case studies from other similar organisations. Originality/value Research in supplier selection processes rarely links continuous improvement ideology such as LSS to support strategic selection and procurement of logistics services. This paper could serve as a resource for both practitioners to derive useful implications and to academicians as it contributes to the LSS body of knowledge for further theory testing.

3PL provider selection in oil and gas industry using the analytic hierarchy process: A case study in oil-field services company X

This study aims to: (1) Summarize the criteria for selecting 3PL Provider in supply chain management from literature review and apply these criteria to build the criteria model in choosing 3PL Provider for oilfield services company X for the purpose of expanding their market in the oil and gas industry and (2) Analyze, evaluate two 3PL Providers, along with a new 3PL Provider and suggest the strategy for selecting the suitable 3PL Provider to meet the specific requirements from company X.
 
 By arranging in-depth interviews with ten people with different positions, including Operation Manager, Supply Chain Manager, Logistics Manager, Base Manager and Logistics Specialist, along with AHP approach and expert choice 11.0 software support in collecting, processing and synthesizing data to evaluate and determine the appropriate 3 PL Provider for company X. In this study, three 3PL Providers have been chosen for analyzing and evaluating – 3PL Providers A, B, and C. The final results demonstrate that there are six main criteria and 13 sub-criteria in choosing 3PL Provider for oilfield services company X. The six main criteria are Performance, Price, Services, Quality assurance, IT system and Intangible values. The results and hypothetical situations have also been presented and discussed again with the expert logistics group to get their feedback about the practicability of the built model. The expert logistics group has agreed that the built criteria model and results are appropriate and adequate for evaluating and selecting a suitable 3PL Provider from the company’s specific demands. Consequently, this study can also be applied for similar purposes in other companies and shipping agents who need to work with outsourcing logistics services in oil and gas industry by using this built criteria model and synthesis results to find out the right decision for selecting 3PL Provider.

Balancing in-house and outsourced logistics services: effects on supply chain agility and firm performance

The purpose of this study is to explore the role of logistics strategies (flexibility, collaboration, and differentiation) as antecedents of supply chain agility (SCA) and financial performance. Toward this end, we develop an integrative model based on the strategy–structure–performance paradigm, the resource-based view, and the relational view. Using structural equation modeling, we test the model with survey data gathered from 279 companies. The findings indicate that logistics strategies influence financial performance both directly and indirectly through SCA, providing empirical evidence for SCA’s central role in helping firms quickly sense and respond to changing environments.

Logistics Outsourcing: Why Do Not Some Italian SMEs Adopt the Externalization?

Logistics is a one of the common function that companies usually outsourced. The decision to keep this function in-house or contract with one or many third-party logistics (3PL) companies is entirely strategic and can dramatically impact any organization's bottom line. 3PL users report an average of 44% of their total logistics expenditures are related to outsourcing. 72% of firms are increasing their use of outsourced logistics services in 2015, which is up slightly from the average reported in recent years. Most developed outsourcing logistics market belongs to the U.S. with 88%. It is followed by Asia 48%, and Europe – 46% (O’Reilly, 2010). In Italy some industries can reach the 70%, in particular food, groceries and fashion (Osservatorio Contract Logistics del Politecnico di Milano). There are many researches about logistics and large enterprises. There are less studies about Small and medium-sized enterprises (SMEs) and logistics outsourcing. SMEs play a major role in the Italian economic system. Their business activities have become an important component of the Italian economy.This paper aims to depict the adoption level of outsourcing by Italian SMEs. By direct interviews to 28 companies’ representatives we investigate which services or processes are outsourced. We investigate the reasons why companies adopt or don’t adopt the externalization. Moreover, for every company we calculate the logistics costs of simple logistics processes. In effect, we wish to compare the logistics costs communicated by the firms and the same costs calculated with ABC (Activity Based Cost) model. This research demonstrate that SMEs adopt 3PLs only for transportation. SMEs do not know all the logistics services offered by 3PLs and SMEs think the services are dedicated only to large enterprises. Finally, many companies are not able to calculate logistics costs, then they cannot compare a 3PL offer with their real costs.

An Empirical Study of the Quality Evaluation in Logistic Service of the B2C E-commerce Companies in China

As the outsourcing of key suppliers and business processes becomes increasingly popular, the evaluation and selection of the logistics outsourcing companies is of critical importance in supply chain management. However, there are few quantitative studies on the investigation of the main affecting factors of the logistics service quality focused on the market in China, which is one of the developing countries with the highest online population growth. This paper is an attempt to identify the main factors affecting the logistics service satisfaction of the B2C e-commerce sites in China, and Fisher’s exact test is applied to identify the main affecting factors of logistics service satisfaction and evaluation. The results could be the guideline for the e-commerce companies in terms of improving their outsourcing logistics services.

Selection of a third party logistics service provider for an aerospace company: an analytical decision aiding approach

As shippers worldwide are increasing their use of third party logistics (3PL) services, the need for carefully selecting 3PL service providers is becoming much more critical. Choosing the right 3PL service provider is often a dilemma faced by supply chain managers. Our purpose is to show how the analytic hierarchy process (AHP) can be used in aiding companies with the decision of selecting the most capable 3PL service provider for an aerospace company. The methodology we propose enables practitioners to systematically evaluate the trade-offs among multiple factors and therefore helps them in making more informed decisions when evaluating outsourcing logistics services.

Identifying The Objectives Of Outsourcing Logistics Services As A Basis For Measuring Its Financial And Operational Performance

Identifying The Objectives Of Outsourcing Logistics Services As A Basis For Measuring Its Financial And Operational Performance

An exploratory study of outsourcing 3PL services: an Australian perspective

PurposeOver the last two decades, a large number of studies have been conducted in the field of outsourcing third‐party logistics (3PL) services and the field is growing. The purpose of this paper is to examine the extent to which 3PL services are outsourced by Australian firms. Specifically, it investigates the motivation for outsourcing, the average length of 3PL contracts, types of logistics services used and the impact of the use of outsourcing logistics services on customer satisfaction, logistics costs and employee morale of the user companies.Design/methodology/approachThis study is based on a questionnaire survey conducted in Australia. The sample was drawn from companies listed in Dun & Bradstreet's 500 largest Australian firms. Banks and other financial firms, insurance companies and real estate companies were excluded from the list of firms and a total of 210 firms were identified for this study. Data were collected against a number of items pertaining to the extent of 3PL use and its impact on performance.FindingsThe results revealed that the most frequently used logistics functions are warehouse management, order fulfillment and fleet management. The top three factors that motivated the firms to outsource are cost reduction, reduction in capital investment, and enhanced operational flexibility. The level of satisfaction with 3PL service providers is high at 86 percent and is reflected in the indication to continue their use in the future. However, employee morale has been adversely affected in 50 percent of 3PL users.Originality/valueThe paper contributes to the current 3PL practices and the trends in 3PL services for achieving improved business results.

The use of outsourcing logistics activities: The case of turkey

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.

Third Party Logistics Industry in India: Opportunities and Challenges

The third party logistics (3PL) industry is growing significantly all over the world. Globalization of almost all economies of world has resulted in an increase in the emphasis on core competency about movement of goods from one place to another. However, 3PL industry is in its infancy in India. It is led by few domestic and multinational firms. Previous studies have established widespread adoption of 3PL by corporate enterprises in the USA and European countries but very limited research studies have been carried out in India. This paper is an attempt to explore the perspective of 3PL in India. The focus of this research is on assessing importance of logistical services; reasons behind outsourcing logistical services; extent of outsourcing logistics services by corporate enterprises; and slow adoption of 3PL. The findings of this research reveal bright future of 3PL industry in India. Corporate enterprises have a positive attitude towards it but are using 3PL for the fulfillment of routine functions not for strategic objectives as depicted by trends in developed countries for core competency or superior market responsiveness unlike trends in developed countries. However, 3PL firms need to market their value addition capabilities for strategic advantages for rapid growth and development.

Principle and benefits of third party logistics approach when managing logistics supply chain

Abstract The principle of third party logistics has grown into a very important and a well‐functioning logistics concept, mainly due to outsourcing trends in transport business. Providers of 3PL services complemented the effectiveness of logistics supply chain management extending the performance of hauliers and forwarders to what might be called outsourced logistics services providers. The main driver for this was large transportation companies that have striven to render their limited services to the whole transport chain. Firstly, this extended to what now is called forwarding services, i.e. responsibility and transport service was extended from only physical transportation to additional services. Then some transport and forwarding companies continued enlarging their responsibility so that it included an increased part of the transport chain up to a total responsibility for the entire transportation, from production to consumption. A nature of transportation services became more and more the nature of ...

PRINCIPLE AND BENEFITS OF THIRD PARTY LOGISTICS APPROACH WHEN MANAGING LOGISTICS SUPPLY CHAIN

The principle of third party logistics has grown into a very important and a well‐functioning logistics concept, mainly due to outsourcing trends in transport business. Providers of 3PL services complemented the effectiveness of logistics supply chain management extending the performance of hauliers and forwarders to what might be called outsourced logistics services providers. The main driver for this was large transportation companies that have striven to render their limited services to the whole transport chain. Firstly, this extended to what now is called forwarding services, i.e. responsibility and transport service was extended from only physical transportation to additional services. Then some transport and forwarding companies continued enlarging their responsibility so that it included an increased part of the transport chain up to a total responsibility for the entire transportation, from production to consumption. A nature of transportation services became more and more the nature of logistics. Companies started offering complete logistics solutions, instead of only isolated physical transportation services. This allowed a customer to concentrate on the core business instead of paying much attention to material flows.