Outsourcing Of Logistics Activities Research Articles

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.

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.

Using Simulation to Determine Resource Requirements for Outsourcing Outbound Logistics Process

Outsourcing has become an important approach for organizations to improve their focus on core business and thus increase their performance since 1980s (Madsen, 2017). Many organizations outsource non-core activities with the intention to reduce costs, concentrate on core activities, gain access to skilled workforce, and etc. Logistics activities are one of the popular functions for organizations to outsource due to lack of skill and resources. Nowadays, outsourcing logistics activities is becoming a practice worldwide (Yang, 2014). Logistics outsourcing has proven to be an effective way for organization to improve customer services, reduce logistics costs, and gain competitive advantage (Aguezzoul, 2014; Jonsson, 2008; Kamble and Gawankar, 2016). This results in an emerging of 3PL or Third-party logistics provider, an external logistics service provider offering single or multiple logistics activities to its customers, which typically is on contract basis (Yang, 2014). The global 3PL market reached $750 billion in 2014. 80% of all Fortune 500 companies and 96% of the Fortune 100 used some form of 3PL services (Menner, 2015). Despites the benefits, there are some risks associated with loss of control, long-term commitment, and the failure of 3PL to perform their works. Therefore, it is crucial for a company to invest time during initial stages of the outsourcing relationship to ensure value is achieved throughout the process. Keywords: Outsourcing, Simulation Modelling, Contract Management, Resource Requirements, Resource Allocation

Impact of 3PL Outsourcing on Supply Chain Management in Manufacturing Companies in Norway: Case Study Norsk Hydro

3PL outsourcing is a practice in which a company outsources its logistics and supply chain management functions to a third-party logistics provider. By outsourcing logistics activities to a 3PL provider with advanced technology solutions, organizations can improve their supply chain management and achieve greater efficiency and effectiveness. Supply chain management is the coordination and management of all activities involved in the production and delivery of goods and services from raw materials to end customers. It includes activities like procurement, production, transportation, warehousing, and distribution. The research used the descriptive research design. The target population was 30 Manufacturing Companies in Norway.  The research did sampling of 40 participants that were chosen from the target population of 30 Manufacturing Companies in Norway. Questionnaires were utilized to gather the data. The study concluded that the partnership between manufacturers and 3PL providers has become increasingly critical in Norway's competitive manufacturing industry. This collaboration helps to streamline processes, enhance visibility, and optimize inventory management, leading to greater supply chain performance.  To ensure successful outsourcing, it is essential to conduct a thorough analysis of the supply chain, identify the right 3PL provider, establish clear communication and collaboration, develop a performance monitoring system, and regularly review and assess the outsourcing arrangement. It was recommended that before deciding on whether to outsource logistics functions to a 3PL provider, it is crucial to conduct an in-depth analysis of the current supply chain to identify areas that need improvement. The manufacturing company should establish a clear communication plan with the 3PL provider, outlining expectations, key performance indicators (KPIs), and regular reporting requirements. Effective communication and collaboration are crucial to the success of 3PL outsourcing. Keywords: 3PL Outsourcing, Supply Chain Management, Manufacturing Companies, Norway

Managing Logistics Activities for Improving Business Performance

This paper examines the relationships between three logistics activities: customer service, warehouse management, and distribution activity on business performance. The research adopts a quantitative research approach. A survey was utilized to assess managing logistics activities and business performance and evaluate the created research hypotheses. The author tests the hypotheses with a sample in Nawras Company in Erbil with SmartPLS version 4.0 to evaluate and process the data. The results show that the three logistics activities positively related to business performance. The research guides logistics managers in understanding how logistics activities enhance business performance. This research is one of the scholarly works to uncover the logistics activities performed by the company rather than outsourcing logistics activities for enhancing business performance in the Kurdistan region of Iraq.

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.

Multi criteria group decision (MCGDM) for selecting third-party logistics provider (3PL) under Pythagorean fuzzy rough Einstein aggregators and entropy measures

<abstract> <p>In real life, with the trend of outsourcing logistics activities, choosing a third-party logistics (3PL) provider has become an inevitable choice for shippers. One of the most difficult decisions logistics consumers are facing the selecting the 3PL provider that best meets their needs. Decision making (DM) is an important in dealing with such situations because it allows them to make reliable decisions in a short period of time, as incorrect decisions can result in huge financial losses. In this regard, this article provides a new multi criteria group decision making method (MCGDM) under Pythagorean fuzzy rough (PyFR) set. A series of new PyFR Einstein weighted averaging aggregation operators and their basic aspects are described in depth. To evaluate the weights of decision experts and criteria weights we established the PyFR entropy measure. Further, using multiple aggregation methods based on PyFR information, a novel algorithm is offered to solve issues with ambiguous or insufficient data to obtain reliable and preferable results. First, decision-experts use PyFR sets to represent their evaluation information on alternatives based on the criteria. Then, apply all these proposed PyFR Einstein aggregation lists to rank all alternatives and find the best optimal result. Finally, to demonstrate the feasibility of the proposed PyFR decision system, a real example of choosing a 3PL is given.</p> </abstract>

Effect of Logistics Outsourcing on Operational Performance of the Selected Manufacturing Companies in Southwestern Nigeria

The study examined the effect of logistics outsourcing on operational performance of the selected manufacturing companies in Southwestern, Nigeria. These were with a view to providing information on the effect of logistics outsourcing on operational performance of the selected manufacturing companies in Southwestern, Nigeria. The article is organized progressively to elucidate on challenges being faced by producers of Fast Moving Consumer Goods and services in delivering values to their customers; and still remain in business as a going concern through outsourcing of logistics activities, despite the cost volatilities. Evidences area bound in the data was collected and analysed to draw up valid conclusions. The study adopted a descriptive survey design. Primary data on variables such as haulage, storage and facility/asset management and operational performance were obtained through the administration of questionnaire to respondents. The population of the study comprised of six hundred and twenty (620) senior managers, middle level officers and supervisors who were employees of the selected food manufacturing companies in Lagos, Oyo and Ogun states of Southwestern, Nigeria. Sample size of two hundred and sixty (260) employees of manufacturing companies in South western, Nigeria was selected for the study using Taro Yamane’s formula. Data obtained for the study were analysed using figures, tables, percentages and regression analysis. Result from the study showed that logistics outsourcing (F = 10.875, p The study concluded that logistics outsourcing significantly enhanced operational performance of manufacturing companies.

Estimation of Freight Distribution Concept Selection using Decision Making trial and Evaluation Laboratory (DEMATEL) Method

Goods or cargo transported by ship, rail, truck or air. 2: Transport of goods from one place to another is sent by order consignment. 3: Amount paid for carriage of goods. 4: Freight train. Supply is where a product or service is needed make it available to a consumer or business user is the process. It is directly from the producer or service May be done by the provider or distributors or Indirect channels can be used with intermediaries. Alternative: Make the decision to outsource or buy, Defining Outsourcing Priorities of Public Enterprises, Outsourcing provider selection problem, Outsourcing reverse logistics by high-tech manufacturers , Motives for outsourcing logistics activities Evaluation Preference: Make the decision to outsource or buy, Defining Outsourcing Priorities of Public Enterprises, Outsourcing provider selection problem, Outsourcing reverse logistics by high-tech manufacturers , Motives for outsourcing logistics activities. From the result it is seen that Make the decision to outsource or buy and is got the first rank whereas is the Outsourcing provider selection problem got is having the lowest rank. The value of the dataset for Freight Distribution Concept Selection in DEMATEL shows that it results in Make the decision to outsource or buy and top ranking.

Exploratory Study of the Role of Logistics Service Providers in Terms of Traceability in the Process of Outsourcing of Logistics’ Activities: Case of Moroccan LSP

The paper focuses on Information and communication technologies (ICT) deployed by Logistics service providers (LSP), particularly for the monitoring and companies. Indeed, nowadays ICT are essential for any implementation of efficient traceability, notably for the outsourcing of logistics activities. This paper is structured around two parts: the first part presenting the state of the art in terms of outsourcing logistics activities and traceability. The second part concerns a comparative study combining a set of LSP operating in Morocco and those operating abroad through several criteria. These criteria include the services offered and the technology deployed for rigorous traceability. The comparative study will determine the profile of the LSP operating in Morocco and adopting an effective and efficient traceability strategy based on innovative technology.

Drivers of logistics outsourcing: examining transaction costs, core competences and planned behavior

PurposeThis study aims to investigate the extent to which psychological factors and the agency of decision-makers drive outsourcing decisions. Arguments based on transaction cost economics, the core competence approach and the theory of planned behavior are used to explain logistics outsourcing.Design/methodology/approachThe literature was reviewed to identify constructs that are antecedents of logistics outsourcing intentions, and corresponding measures were developed. The data were gathered through a survey of supply chain professionals in Finnish manufacturing companies. A measurement model was reviewed to ensure reliability and validity and converted into a structural model for analysis. The analysis was based on partial least squares (PLS) structural equation modeling.FindingsSupply chain managers objectively consider the characteristics of their organization's logistics identified in previous research as requiring assessment during the outsourcing process. However, and surprisingly, they also tend to rely on behavioral subjective factors such as positive attitudes, encouraging subjective norms and competence. Moreover, it seems that firms do not outsource logistics activities despite the high strategic importance of the function, but because of it.Research limitations/implicationsThe constructed model is limited to the constructs chosen to represent drivers of logistics outsourcing. Further application with more samples would improve its reliability.Practical implicationsThe factors proposed here with respect to assets and the capabilities of third-party partners could facilitate decision-making related to logistics outsourcing.Originality/valueThe findings emphasize the role of behavioral factors in the procurement function and therefore enhance the understanding of behavioral supply chain management.

Re-insourcing das atividades logísticas: estudo de casos múltiplos em centros de distribuição de peças de reposição

A fim de reduzir o tempo de entrega, otimizar o uso da frota, agilizar os fluxos logísticos e oferecer serviços especializados, as empresas atribuem à terceiros o gerenciamento de suas atividades logísticas. No entanto, a experiência da terceirização para algumas empresas parece não ter surtido o efeito desejado. Em algumas situações, tem-se observado uma tendência de reversão na decisão de terceirizar as atividades logísticas, processo esse denominado re-insourcing. Embora o re-insourcing esteja sendo realizado, ainda não são totalmente claras as razões que motivam essa mudança estratégica nas organizações. Este trabalho tem como objetivo identificar as razões que levam as organizações a interromperem a terceirização das atividades logísticas e realizar o re-insourcing. Para tanto, um estudo de casos múltiplos foi conduzido em uma montadora de veículos comerciais e em uma montadora de tratores para agricultura e construção civil. O resultado deste estudo indicou que o principal fator motivador para a realização do re-insourcing foi o baixo desempenho apresentado pelos operadores logísticos, causado pela alta rotatividade da mão de obra terceirizada, baixa produtividade e nível de qualidade dos serviços prestados abaixo do esperado.

Drivers Impacting Relationship Quality and Customer Loyalty in Logistics Outsourcing – Pakistan Perspective

By increasing the scope of supply chain management and concept of outsourcing logistics activities of third party logistics services. The relationship quality in supply chain management has began to start the understanding of logistics outsourcing especially in Pakistan. This study covers the gap and investigate the drivers of impacting relationship quality and customer loyalty in logistics outsourcing in Pakistan. In this research used Transaction cost economics (TCE) and resource dependence theory (RDT). Dependent variable of logistics outsourcing are unavailability of alternatives, logistics performance. information sharing, 3pl importance are positively impact on relationship quality and opportunistic behavior providing a negative impact on relationship quality and this relationship quality build the customer loyalty and length of the relationship with the customers. So the impact of relationship quality is positive on the customer loyalty. Managerial implication also observed in this study and gave the positive direction for future.

Mapping Supplier Selection Methods and Criteria in the Scoring and Assessment Sourcing Process: Case of Logistics Activities

This research brings to evidence interesting associations between supplier selection methods and criteria when outsourcing logistics activities. The study was conducted in two phases. First phase dealt with a systematic literature review that was carried out to identify characteristics of the supplier scoring and assessment process. It generated an exhaustive presentation and classification of supplier selection methods and criteria needed for evaluation and selection of logistics suppliers. Second phase handled an association analysis which allowed to unfold interesting associations between supplier selection methods and criteria. This research study yielded important findings, that is, the criteria and methods typically used for supplier scoring and assessment are not homogeneous across logistics activities. In general, each logistics activity is linked to specific selection methods and criteria. Meanwhile, some interesting high order association rules linking supplier selection methods to selection criteria emerged to be commonly used across all the logistics activities.

ПРОБЛЕМЫ ЛОГИСТИЧЕСКОГО АУТСОРСИНГА И УЧЕТ ОТРАСЛЕВОЙ СПЕЦИФИКИ БИЗНЕСА ПРИ ПРИНЯТИИ РЕШЕНИЯ ОБ АУТСОРСИНГЕ

Today logistics outsourcing is one of the most popular tools that allow companies to save costs. However, quite often companies that outsource logistics activities to thirdparty organizations observe deterioration in the quality of logistics operations. The problems and difficulties faced by companies applying for outsourcing, and identifies the causes of some problems has been analyzed. One of the reasons for dissatisfaction with the services of logistics outsourcing is the fact that companies providing outsourcing services do not sufficiently take into account the industry specifics of their client’s business and, using a standard approach, do not adjust their business processes to this specificity. A some of the characteristics of the business, which provide the prerequisites for outsourcing or insourcing logistics activities also has been highlighted.

The Implementation Of Analytic Nalytic Hierarchy Process In Pharmaceutical Industry For Selection Process Of 3rd Party Logistics Service Provider

Deciding to outsource a company’s warehousing and distribution is never easy. Although cost is certainly one of the major considerations, there are many other criteria such as quality, reputation and service level that are part of the decision making process. Many companies from different industries prefer to outsource logistics activities by evaluating different information when choosing the right logistics partner. Through this, companies also gain experience about working with a strategic partner for outsourcing. Also, the experience/former performance of the potential partner is one of the most important performance indicator and decision criteria for the logistics provider selection. Therefore, experience is one of the key driver in decision making process. Since pharmaceutical industry has its own priorities due to stricter quality standards, the experience related to the former performance is a more relevant factor in the decision criteria. In this study, the analytic hierarchy process (AHP) was applied to evaluate selection process of 3PL service providers in pharmaceutical industry. Also, the relative weights of the four criteria and twelve sub-criteria were determined to select the most important criteria in pharmaceutical industry which was experience with its factor weight of 32.40%.

Third party logistics (3PL) selection for cold chain management: a fuzzy AHP and fuzzy TOPSIS approach

Managing value chain of perishable food items or pharmaceutical drugs is known as cold chain management. In India, approximately 30% fruits and vegetables get wasted due to lack of effective cold chain management. Logistic providers play a crucial role in making cold chains more effective. Based on literature review, ten criteria are selected for the third party logistics (3PL) selection process. Some of these criteria are transportation and warehousing cost, logistic infrastructure and warehousing facilities, customer service and reliability, network management, etc. This study illustrates a hybrid approach for selection of 3 PL for cold chain management under fuzzy environment. A hybrid model of Fuzzy AHP and Fuzzy TOPSIS is proposed in this paper for the selection of an appropriate 3PL in order to outsource logistics activities of perishable products. Fuzzy AHP is used to rank different criteria for 3PL selection, then Fuzzy TOPSIS is used to select the best 3 PL based on performance. The results imply that logistic providers should focus on practices such as automation of processes and innovation in cold chain processes to become more competitive.

Outsourcing Logistics Activities: Evidence from Slovenia

The purpose of this research is to investigate how logistics outsourcing performs activities that have been traditionally carried out within the outsourcer’s company. The study examines the characteristics of logistics and transport services, which are important in cooperation with service providers. Two groups were formed according to the average values of the characteristics of logistics activities. ‘Cost, quality and response’ are important for the first group, while ‘logistics, environment and the ability to adapt to client processes’ are important for the second group. The results of the survey carried out in Slovenian enterprises show that both groups are primarily interested in express freight and shipment services, the difference lying in the understanding of logistics, mutual trust and brand recognition. The findings will be useful both in business practice and for managers, providing them with a better understanding of the performance of logistics outsourcing.

Characteristics of Logistics Outsourcing in Bulgaria: The Perspectives of the Logistics Service Providers and their Customers

AbstractThe increased demand and supply of logistics services bring together the logistics service providers (LSPs) and the companies that outsource logistics activities. LSPs stand in between those companies and their customers, thus playing an essential role for supply chain integration. If the two parties have different viewpoints of the processes in the supply chain, the fulfillment of the goal to satisfy the end customers may be hindered. The purpose of this article is two-fold: First, to investigate the characteristics of logistics outsourcing in Bulgaria from the perspectives of the logistics service providers and their customers, and more specifically, to compare their viewpoints concerning the motives for outsourcing, the methods and contents of communication and some relationship management aspects; Second, to assess the relations of the communication and relationship management aspects to customer satisfaction. This article is based on empirical data provided by 138 manufacturing and trading companies and 136 LSPs and collected through two structured questionnaires designed to address the researched issues. The data were analyzed using descriptive statistics and the independent samples t-test. The research found that the service related reasons for logistics outsourcing are prevailing and that LSPs overestimate, compared to manufacturing and trading companies, motives related to service, organizational capabilities and relationships, while more manufacturing and trading companies concern as important the availability of logistics assets and the provision of value-added services. The research also found that both the LSPs and their customers consider that the extent of sharing of knowledge and information essential for material flow integration is very low and that the usage of team meetings and joint teams is quite rare. Also, customers do not view their relationships with the LSPs as so collaborative as viewed by the LSPs. Furthermore, the research proved the existence of positive relationships between customer satisfaction and communication through team meetings and joint teams, knowledge sharing concerning material flow management and relationship management issues such as trust, mutual problem solving, understanding the logistics strategy of the other party and respecting its financial interests. The research findings may help fill in some of the gaps between LSPs and their customers. They point the need for LSPs to include in their service offerings more value-added services and to invest in assets that provide reliable and flexible services for their customers. The research also highlights the importance of knowledge sharing and trust building and reveals great potential for effective trust-based alliances between LSPs and their customers that could help them extract more competitive benefits from their relationships.

Strategic issues in pharmaceutical supply chains: a review

Purpose In the present context of a health-concious society, management of pharmaceutical supply chains has become more complex because it involves the life-saving interest of human being and requires the participation of different stakeholders such as pharmaceutical manufacturers, wholesalers, distributors, customers, information service providers and regulatory agencies. Limited research is available in the area of pharmaceutical supply chains. This paper aims to find the gaps in the literature by reviewing research papers on different strategic issues of supply chain management in the pharmaceutical sector. Design/methodology/approach In total, 136 research papers, mainly from refereed international journals, were reviewed to identify the issues of supply chain management (SCM) in the pharmaceutical supply chain. On the basis of a review, gaps are identified and research agenda is proposed. Findings It is observed from review that the pharmaceutical sector is not widely researched in developing countries because of many complexities in this supply chain. The share of pharmaceutical firms in the global market is also not very significant. Based on an extensive review of pharmaceutical supply chains, research gaps are identified in different areas such as inventory management, new product development, process development, capacity planning, network design, plant design, pipeline and development management, outsourcing logistics activities, reverse logistics, Lean manufacturing, green SCM and implementation of E-business processes and performance management. These strategic issues have been further classified into three broad categories, i.e. resources, processes and performance. Originality/value This paper explores major strategic areas of pharmaceutical supply chains for research. Findings of the paper will be highly useful for researchers to decide direction of future research.