Chain Outsourcing Research Articles

Complexity in road freight transport outsourcing networks. TRANSOPE: An agent-based dynamic model

This paper proposes a dynamic agent-based model (TRANSOPE) to simulate outsourcing among transport companies where, for the first time, accumulated knowledge is included as a variable to select service providers. The model consists of two main procedures. Firstly, the model simulates the decision-making of the professionals that contract transport service providers and the formation of outsourcing chains. Secondly, the model simulates the direct learning of participating companies and the transfer of knowledge towards their environment. Imperfect competition is replicated in three different scenarios, which involve the demand for transport services, regional distances and the intensity of knowledge transfer. The model is based on expert consultations and a survey conducted in an environment with a high concentration of transport companies in the Basque Country, Spain. The results indicate significant imbalances in the distribution of outsourcing, particularly in situations of low transport service demand, where 30% of transport companies do not secure any contracts. However, such situations led to strong regional interdependence. The dynamics of outsourcing reveals that over 75% of the contracted companies participate in all simulated scenarios from the first day. A strong hierarchy is also observed in the network, where certain transport companies act as connector hubs (with z-score values higher than 2.5 and participation coefficient values between 0.3 and 0.75), indicating a greater capacity for interaction and leadership in the transfer of knowledge. This feature allows the collaboration network to be identified as a scale-free network. The model has a low computational cost since the distances between agents remain constant. Finally, the formalisation of outsourcing decision-making in the model underpins its validity in forecasting the conduct of a freight transport system under shifting scenarios.

Pharmaceutical supply chain: The importance of outsourcing

A vast web of organizations, companies, and teams involved in creating, researching, and producing drugs and associated products makes up the pharmaceutical sector. In this context, the term “supply chain” refers to the network of individuals, processes, information, and resources that transform raw materials and parts into finished goods and services before being supplied to customers. The pharmaceutical supply chain system, then, offers customers medications in the right amount, at the right time, with acceptable quality, and for the lowest feasible cost. Pharmaceutical companies are increasingly contracting out their supply chain activities due to the severe push to keep R&D expenses under control. Instead of being a cost-cutting measure, global supply chain outsourcing can be seen as a strategic competitive weapon that can improve positional advantage, offer production flexibility, and meet the ever-increasing expectations of final consumers. Global supply chain outsourcing is crucial for pharmaceutical firms to enhance performance and profit margins by leveraging core skills and resources beyond other strategies which can lower risk, increase flexibility, improve returns on capital, and improve a company’s ability to respond to the needs of its shareholders and consumers. Even while there is widespread recognition of the alluring advantages of global outsourcing, many of the related concerns are frequently disregarded. In addition to briefly discussing risk assessment methods, the goal of this work is to offer manufacturer-focused insight into supply chain-related outsourcing concerns within the pharmaceutical industry.

Impact of Farmer Participation in Production Chain Outsourcing Services on Agricultural Output Level and Output Risk: Evidence from the Guanzhong Plain, China

Shifting from a land-scale operation to a service-scale operation of agricultural production chain outsourcing services (APOS) is crucial to achieving innovation in agricultural-scale operation techniques. Using propensity score matching (PSM) and data from 1027 farm households in Guanzhong Plain, Shaanxi Province, we empirically assessed the impact of APOS on agricultural output level and output risk. First, age, gender, health, education, training, number of outworkers, land tenure, land contiguity, and subsidy satisfaction had a substantial beneficial influence on the involvement of farm families in APOS. Second, involvement in APOS may greatly increase the amount of agricultural production and lower the risk associated with farm families’ agricultural output. Moreover, the participation in outsourcing services for agricultural machinery use and field management significantly increased agricultural output and decreased output risk, but the participation in agricultural machinery use outsourcing services increased yield and reduced risks more significantly.

ACHIEVING SUSTAINABILITY AND RESILIENCE: A CASE STUDY OF NESCAFE'S GLOBAL SUPPLY CHAIN MANAGEMENT

This study delves into the complexities of managing a global supply chain. It examines the supply chain strategy employed by Nestle to produce and distribute its popular coffee brand, Nescafe. The main focus is on evaluating the key challenges faced by the company, including post-COVID-19 issues, sustainability concerns, climate change, and supplier profitability. In response to these challenges, Nestle has implemented a structured approach to develop a resilient, sustainable, competitive supply chain for Nescafe. The Nescafe Plan, a global sustainability initiative, has provided a competitive advantage to Nescafe’s supply chain. This initiative involves collaboration with suppliers, distributors, and customers at all levels, ensuring accountability and promoting ethical practices. Results show significant positive impacts, including local sourcing of coffee, reduced carbon emissions, and water withdrawal. Nescafe operates its coffee supply chain based on a lean strategy, ensuring supply and demand stability. Customer demand for Nescafe’s products is well-predicted, allowing for unique positioning, high service levels, and cost efficiency. To enhance supply chain resilience, Nescafe focuses on mitigating internal and external risks in coffee lands, addressing issues like labour shortage, child labour risks, climate change, and natural disasters. The study also explores Nestle’s approach to supply chain outsourcing and supplier selection processes. Furthermore, the study examines Nestle’s commitment to sustainable development, encompassing economic, environmental, and social aspects. The company invests in economic development by situating production in developing countries and ensuring growth and long-term success for stakeholders. To continue its journey towards sustainability, Nestle has set ambitious goals for the future, aiming for recyclable packaging, zero net gas emissions, and 100% sustainably produced materials by 2030. The company also plans to empower 10 million young people with economic opportunities globally by the same year. Generally, this study provides valuable insights into the strategies adopted by Nestle to create a resilient and sustainable global supply chain for Nescafe, offering lessons for other manufacturing companies seeking to achieve future success through effective supply chain management.

From road freight transport outsourcing chains to complex collaborative networks: a case study

From road freight transport outsourcing chains to complex collaborative networks: a case study

Influence Of Procurement Best Practices On Performance Of Nca Registered Building Projects In Nairobi City County, Kenya

Purpose: The study aimed at establishing how reverse logistics management, supply chain outsourcing, strategic collaborations, and supply chain benchmarking influence the performance of NCA registered building projects
 Methodology: To achieve this, the researcher reviewed both theoretical and empirical literature and proposed the research methodology that addressed the gaps identified in the literature as well as answered the stipulated research questions. A descriptive survey design was adopted by the study. A total of 289 commercial building projects registered by National Construction Authority in Nairobi City County was the target population, as shown in NCA (2020) directory. Using Kothari (2015) sample size formula, the study got 167 commercial building projects. This study used simple random sampling to get the firms. The study preferred this method because it allowed an in-depth study of the subject. To gather data, structured questionnaires were used to collect data. Once collected, data was analyzed using descriptive and inferential statistics. Quantitative data was analysed using multiple regression analysis. The qualitative data generated was analyzed by use of the Statistical Package of Social Sciences (SPSS) version 21
 Results and conclusion: The current study obtained an R2 of 64.7% and should therefore be expanded further in futhe ture in order to include other procurement best practices that may as well have a positive significance to the performance of NCA registered build projects.The findings of the study indicated that reverse logistics management, supply chain outsourcing, strategic collaborations and supply chain benchmarking have a positive relationship with performance of NCA registered building projects in Kenya.
 Policy recommendation: the study recommended that institutions should embrace procurement best practices so as to improve performance and furtherresearchs should to be carried out in other institutions to find out if the same results can be obtained

Information technology outsourcing chain: Literature review and implications for development of distributed coordination

Information technology outsourcing chain: Literature review and implications for development of distributed coordination

Пандемическое тестирование устойчивости развивающихся трендов высшего образования

The article is devoted to objectifying the consequences of the emergency transition to distance education in universities and the global decline in academic mobility during the 2020 pandemic through the prism of active implementation of the methodology of success and excellence in education. The author highlighted the current trends in education by the beginning of the second decade of the 21st century: increasing inequality in the education system; the predominance of the idea and methodology of success and excellence; a stable division into global and regional; the replacement of the model of internalization of values with the model of knowledge generation; refusal of targeted state subsidies in favor of self-financing; precarization of the middle teaching class; demonstration of the superiority of digital solutions in the translation of knowledge; creation of outsourcing chains of interaction in the educational sphere (research centers – universities, universities – commercial publishing houses, schools – career guidance centers, universities – online plaftorms, etc.). The article analyzes the aspects of changes in the modern model of higher education, taking into account the desire to position universities in the world educational rankings. The basis for a discussion of the choice of development priorities has been formed, taking into account the growing dissatisfaction of teachers with the need to match the model of success and excellence in their educational and scientific activities. It was found that pre-pandemic trends in education were multidirectional, and their impact on education systems and learning models (global or regional) was more stimulating for development, rather than mandatory for survival. The crisis has divided the manifestations of the new into two components: necessary renewal and sufficient improvement to ensure stability. It is noted that education is characterized by a fairly conservative approach to the organization of the educational process, so the extreme transition to distance learning during the pandemic actually replaced the evolutionary period of transformation of education, which would have lasted for more than one decade. Academic mobility, which has become widespread in the world, but which was forced to temporarily stop its activity during the pandemic, in the new conditions can continue to contribute to improving the ranking of universities, but can also carry threats of precarization to their working teachers and become a source of social tension, which should be taken into account when developing university development programs in the context of universal digitalization. Conclusions are drawn about trends have been tested by the pandemic reality, which will determine the vector of future development of higher education. Acknowledgements. The reported study was funded by RFBR according to the research project № 20-04-60109.

Information Technology Outsourcing Chain: Literature Review and Implications for Development of Distributed Coordination

The paper aims to analyse how the management science literature explains sustainable coordination and management of Information Technology (IT) outsourcing chains. The IT outsourcing theories,—that is, transaction cost theory, theory of agency, resource based view, activity based theory, contractual theory, partnership and alliance theory and stakeholder theory—are applied as a background to the analysis. A systematic literature review reveals that IT outsourcing is developed in collaborative networks and chains. There are some mechanisms identified in the literature for outsourcing chains’ management, interchain sustainability, coordination and interchain activities’ cohesion. The complexity of outsourcing relationships presented among outsourcers and outsourcees stimulate looking for new business models. Furthermore, outsourcing chains research would benefit from considering strategy-based theoretical discussions, relationship modelling and project management. The literature survey aims to present outsourcing chains in different aspects, that is, dynamics and agility, communication in chains, compensation and compliance, contracting, stakeholders, decision making models, governance problems, integration, performance measurement, project management and strategy development. This paper intends to emphasize that interchain coordination can be improved by enterprise architecture modelling as well as by the application of blockchain economy.

Strategic Logistics Outsourcing in Humanitarian Supply Chain: A Fuzzy AHP Approach

This research paper investigates an under-researched topic, logistics outsourcing decision issue in the humanitarian supply chain outsourcing environment. Specifically, this research aims to identify the important factors for selecting third-party logistics(3PL) service providers in a humanitarian supply chain. This is based on literature review and interviews from logistics managers in a humanitarian sector which was evaluated with a multiple-criteria decision-making(MCDM) method called the analytical hierarchy process(AHP) under fuzzy environment. Through the use of the AHP, the relative importance of individual criteria was determined. Fuzzy-theory application of the linguistic values handles the vagueness and subjectivity of decisions. The findings of this research offer managerial insight and implication related to the use of a 3PL in the humanitarian supply chain environment to identify the possible optimal providers using a robust MCDM framework.

Three worlds of global value chains: multiple governance and upgrading paths in the Korean animation industry

Cultural production is increasingly fragmented and dispersed organizationally and geographically as a result of growing offshore outsourcing within and across firms, giving rise to global value chains (GVCs). Yet, a GVC perspective has been applied limitedly to the study of cultural industries without serious consideration of inter-firm governance structure and its consequences on upgrading. Building upon the GVC literature on multiple governance structure, this paper examines three GVCs in Korea with distinctive governance forms: U.S. outsourcing chains, Japanese outsourcing chains, and international coproduction chains. The two outsourcing chains exhibited marked differences in various governance dimensions with distinctive upgrading patterns. International coproduction chains emerged as an alternative pathway of upgrading after the rapid decline of outsourcing exports, posing unique opportunities and challenges to firms and policy-makers. The findings are discussed in the context of multiple governance structure in GVCs and its implications to upgrading in networked global cultural production.

Model Construction of Supply Chain of Innovative Producer Service—Perspective of Service Outsourcing Based on SOA Theory

With the deepening of economic globalization and the advancement of science and technology, modern service industry has developed rapidly. However, the traditional product supply chain cannot meet the need of its development. A new market environment needs a new theory of service supply chain which accords with the social development, to guide a healthy and orderly development of modern service industry. Considering the correlation between service supply chain and service-oriented architecture theory (SOA), this paper constructs the general model of Producer Service supply chain based on SOA theory by using relevant scientific theories and methods of service. Furthermore, a case analysis is made on the model of Foxconn's human resources’ outsourcing chain. This paper broadens the theoretical perspective of supply chain to a certain extent, and provides practical guidance for Producer Service supply chain management based on concrete case analysis.

Supply Chain Outsourcing at DB Toys

The case is based on a real supply chain outsourcing management decision at a major manufacturing company. The company has been disguised for confidentiality reasons. The case discusses different types of outsourcing, supply chain management, the benefits and risks of outsourcing, and various pricing models for outsourcing contracts. Students must make a management decision and answer these questions: Is supply chain outsourcing a viable option for DB Toys? What will the return on investment be? What is the best outsourcing model? What is the best pricing model?Students learn the different types of outsourcing, supply chain management, the benefits and risks of outsourcing, and various pricing models for outsourcing contracts. Students also learn how to calculate the return on investment of supply chain outsourcing. Most important, the case enables students to understand the strategic context of outsourcing, and to decide which outsourcing model and pricing is appropriate.

Strategic outsourcing objectives drive 3PL selection criteria in India

This paper examines the extent to which supply chain outsourcing objectives determine the selection criteria for 3PL service providers. While the 3PL selection criteria are researched earlier, there is little understanding how they are influenced by the strategic objectives of an organisation. Using a cross-sectional survey of 297 logistics and supply chain professionals from across industries in India, structural equation modelling (SEM) analysis reveals that strategic outsourcing objectives are the likely predictor of the 3PL selection criteria. The respondents perceived higher customer satisfaction, reduction of ICT legacy systems, capital investment avoidance and access to state-of-the-art technology that influence the decision on selection of 3PL service provider. The findings provide shipper managers an insight on how to purposefully assess the selection criteria ensuring their alignment with strategic objectives of outsourcing.

Effective governance defines strategic supply chain outsourcing success in India

This paper aims to study whether effective governance can have a positive influence on the success of supply chain outsourcing. While earlier studies mostly focused on key success factors of logistics outsourcing, the importance and effect of governance on logistics outsourcing success merits further investigation. Governance in joint participation, mutual conflict resolution and collaborative relationships are conceptualised as antecedents of outsourcing success. The results of SEM analysis of survey data from 297 professionals representing shipper organisations in India revealed a positive and significant relationship between dimensions of governance and outsourcing success. The findings draw shippers' attention to collaborative relationship governance at early conceptual stage; joint work on risk and reward sharing at implementation stage; and mutual conflict resolution at post-implementation stage in order to achieving outsourcing success in India.

Strategic outsourcing objectives drive 3PL selection criteria in India

This paper examines the extent to which supply chain outsourcing objectives determine the selection criteria for 3PL service providers. While the 3PL selection criteria are researched earlier, there is little understanding how they are influenced by the strategic objectives of an organisation. Using a cross-sectional survey of 297 logistics and supply chain professionals from across industries in India, structural equation modelling (SEM) analysis reveals that strategic outsourcing objectives are the likely predictor of the 3PL selection criteria. The respondents perceived higher customer satisfaction, reduction of ICT legacy systems, capital investment avoidance and access to state-of-the-art technology that influence the decision on selection of 3PL service provider. The findings provide shipper managers an insight on how to purposefully assess the selection criteria ensuring their alignment with strategic objectives of outsourcing.

Effective governance defines strategic supply chain outsourcing success in India

This paper aims to study whether effective governance can have a positive influence on the success of supply chain outsourcing. While earlier studies mostly focused on key success factors of logistics outsourcing, the importance and effect of governance on logistics outsourcing success merits further investigation. Governance in joint participation, mutual conflict resolution and collaborative relationships are conceptualised as antecedents of outsourcing success. The results of SEM analysis of survey data from 297 professionals representing shipper organisations in India revealed a positive and significant relationship between dimensions of governance and outsourcing success. The findings draw shippers' attention to collaborative relationship governance at early conceptual stage; joint work on risk and reward sharing at implementation stage; and mutual conflict resolution at post-implementation stage in order to achieving outsourcing success in India.

Understanding the Present by Examining the Past: Imprinting Effects On Supply Chain Outsourcing in a Transition Economy

Institutional transitions within emerging markets create significant challenges for effective supply chain management. This research investigates external pressures, internal strategic choices, and institutional imprinting influences on supply chain outsourcing and operational performance. Results of primary and secondary data from a sample of 769 firms in Russia demonstrate that industry competitor growth and decentralized outsourcing decision making encourage firms to outsource more supply chain activities. Interestingly, however, these influences are directly and indirectly thwarted within firms that have a strong imprint from the former Soviet centrally planned economy. Further, the positive impact on operational performance resulting from decentralized decision making and outsourcing becomes negative when firms have a strong Soviet imprint. This research underscores the significance of founding institutional imprints of emerging economies when considering supply chain decentralization and outsourcing decisions.

Protective legal regulation for home-based workers in Australian textile, clothing and footwear supply chains

Supply chain outsourcing has posed problems for conventional labour regulation, which focuses on employers contracting directly with workers, particularly employees. These difficulties have been exacerbated by the traditional trifurcated approach to regulation of pay and conditions, work health and safety and workers’ compensation. This paper analyses the parallel interaction of two legal developments within the Australian textile, clothing and footwear industry. The first is mandatory contractual tracking mechanisms within state and federal labour laws and the second is the duties imposed by the harmonised Work Health and Safety Acts. Their combined effect has created an innovative, fully enforceable and integrated regulatory framework for the textile, clothing and footwear industry and, it is argued, other supply chains in different industry contexts. This paper highlights how regulatory solutions can address adverse issues for workers at the bottom of contractual networks, such as fissured workplaces and capital fragmentation, by enabling regulators to harness the commercial power of business controllers at the apex to ensure compliance throughout the entire chain.

A Successful Case to Adopt Green Purchasing System

In recent years, public attention to environmental protection has grown to an unprecedented level. Many international textile brands have switched to purchasing textile materials that comply with environmental standards. Brand companies in EU, US, Japan, and many other advanced nations will release their restricted substance lists (RSLs) on a regular basis to indicate the substances they restrict using and the content of substances of very high concern (SVHC). However, with the rapid growth of the list of restricted substances and SVHC, the requirement for constant updating and confirming RSLs with buyers has become a serious burden on Taiwan’s textile industry. This paper introduces a successful case of adoption of Green Textile Cloud Services (GTCS) in Taiwan. This company uses GTCS to enhance its efficiency in managing RSLs of different customers and establish effective green supply chain purchasing and outsourcing policies.