Outsourcing Logistics Functions

Abstract The process of Outsourcing Logistics Service (OLS) is deemed incipient in the management of organizations, not only because of the operational problems it presents, but also of its difficulties fitting into the company’s overall strategy. The present theoretical study, building on the resource-based view of the firm, aims to propose a framework that guides managers in developing strategies to OLS starting from the operational structure to establish the necessary resources, capabilities, and routines. In addition, taken into account is the importance of analyzing risks and resilience in the environment, concomitantly with the analysis of the operational structure. Thus, four questions were developed, aimed at leading operations managers to reflect on the development of the strategy. The framework proposed for OLS considers the supply chain management department as the main interlocutor of the strategy. This framework can be adapted according with the necessity of the contracting company, and its main intention is to enable the establishment of a project that contemplates the necessary resources, the capabilities (criteria), and the operational routines (subcriteria) for the selection of a logistics service provider in the market, one which truly addresses the needs of the organization. This framework is already intrinsic in the practical actions of the authors, because of their extensive advisory activity over the last five years in OLS to logistics service provider. In addition, it is worth mentioning that so far in the tacit applications of this framework there has been no application similar to another.

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Does the Outsourcing of Logistics Services Keep its Promise of Increased Efficiency?

Outsourcing Management for Supply Chain Operations and Logistics Service - Advances in Logistics, Operations, and Management Science ◽

10.4018/978-1-4666-2008-7.ch010 ◽

2013 ◽

pp. 162-184 ◽

Cited By ~ 1

Author(s):

Aliona Grigorenco ◽

Philippos Papadopoulos ◽

Konstantinos Rotsios

Keyword(s):

Performance Measures ◽

Service Providers ◽

Third Party ◽

Third Party Logistics ◽

Logistics Outsourcing ◽

Logistics Service Providers ◽

Logistics Services ◽

Business Functions ◽

And Performance ◽

Outsourcing Logistics

The aim of this chapter is to evaluate the efficiency of third party logistics (3PL) and the importance of outsourcing logistics services from the client’s perspective. The research focuses on current practices related to the extent of use, predictive value outsourcing and performance measures system of Colgate-Palmolive Company in Greece. The study examines the efficiency of the logistics service providers, and its impact on the overall client performance, evaluated through interviews with the 3PL Coordinator, the Logistics Manager, and the Manufacturing Director. The key findings of the work are that logistics outsourcing takes responsibility for non-core business functions, brings reductions of stocks and costs as well as order-to-delivery lead-time, accelerates capital turnover and capitalizes on synergies to achieve efficiency. Overall, its contribution is evaluated by the client as satisfactory and of medium significance, with room for improvements.

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Virtual Logistics from Outsourcing Logistics

IT Outsourcing ◽

10.4018/978-1-60566-770-6.ch044 ◽

2010 ◽

pp. 754-762

Author(s):

Vladimir Modrák

Keyword(s):

Supply Chain ◽

Communication Technology ◽

Fixed Costs ◽

Information Communication ◽

Know How ◽

Logistic Management ◽

Logistics Services ◽

Integrated Architecture ◽

Outsourcing Logistics ◽

Number Of Customers

The wide utilisation of information communication technology has significantly affected also a development of logistics services concepts. Consequently, research in the area of virtual companies including logistics services is developing. Presented visions are commandingly optimistic, even though sceptics are already gathering counter-arguments against those visions. As an important factor of strengthening, the above-mentioned optimistic vision can be accounted for by a tendency of wider applications of outsourcing. Activities carried out by specialised external providers for a larger number of customers are usually cheaper, particularly because of fixed costs. Moreover, organisations that provide outsourcing bring into partnership their own know-how from optimisation of logistical activities. Cooperation in this field helps to eliminate or reduce unexpected idle periods in transport, such as long transport routes, reloading, customs clearing, and other. A higher form of outsourcing is the inclusion of logistical centers (LC) into a supply chain (SC). With the progressing globalization, the significance of integrated logistical centers is increasing. The aim of the article is to describe the concept of an integrated architecture of a logistic center reflecting progressive trends in logistic management. It also includes a model of features for a designing of a virtual logistical center and description of typical signs of virtual corporations.

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Competing Through Logistics Management

Supply Chain and Logistics Management ◽

10.4018/978-1-7998-0945-6.ch050 ◽

2020 ◽

pp. 1075-1094

Author(s):

Yaqiong Lu ◽

Zheng Liu ◽

Lei Ma

Keyword(s):

Customer Satisfaction ◽

Competitive Advantage ◽

Third Parties ◽

Customer Relationship ◽

Virtual Network ◽

Logistics Management ◽

Emerging Country ◽

Critical Issues ◽

Initial Survey ◽

Outsourcing Logistics

In the past 10 years, e-commerce and e-retailing have developed rapidly in China, the largest emerging country. Due to the increasingly more competition in this industry, a fast and reliably delivery is important to win customer satisfaction. Despite of the fact that many e-retailing companies are running virtual network by outsourcing logistics to third parties, there is also a trend for companies to establish their own logistics channels. In fact, self-owned logistics can be an effective approach of marketing and customer relationship development, and thus provide competitive advantage. This chapter focuses on how Chinese e-retailing companies compete through logistics management. It starts with an introduction of e-retailing and logistics management from practice and literature perspectives. Then, there are cases studies into successful Chinese re-retailing companies with a highlight on their logistics management models and customer satisfaction based on initial survey. Further discussion will address the critical issues of logistics management in e-retailing.

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The Expansion Dilemma for Fourth-Party Logistics Services: Kodan Solutions Private Limited

Vision The Journal of Business Perspective ◽

10.1177/0972262920953430 ◽

2020 ◽

Vol 24 (4) ◽

pp. 506-516

Author(s):

Anupama Prashar

Keyword(s):

Supply Chain ◽

Value Added ◽

Secondary Data ◽

Third Party ◽

Primary Data ◽

Business Trend ◽

Logistics Services ◽

Fourth Party Logistics ◽

Outsourcing Logistics

The purpose of the case is to introduce the students to an emerging business trend of outsourcing the logistics function. The case enables the students to analyse the benefits of outsourcing logistics function and understand the concept of third-party logistics (3PL) and fourth-party logistics (4PL). The case is developed based on the primary data collected through interviews with the protagonist. Also, secondary data from published reports and archives of the company were used for the development of the case. After the case discussion the students will be able to understand the role of project logistics services in the supply chain. They will also understand the role of value-added logistics services such as cross-docking, reverse logistics and customs clearance, and the documentation involved in cross-border logistics. This case is among the first few cases on the concept of project logistics services and their role in the supply chain management.

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