scholarly journals Priority Types of the Enterprise Logistic Activities for Outsourcing

2020 ◽  
Vol 24 (1) ◽  
pp. 189-193
Author(s):  
K. Sokoliuk ◽  
◽  
A. Lyashenko ◽  

Annotation. Introduction. The article examines the services of logistic outsourcing from the point of view of Ukrainian manufacturing companies, analyzes the results of the survey, compares them with global trends. It was determined that Ukrainian companies use logistic outsourcing less often than companies in other regions of the world. Also, the most often outsourced fields were identified. Purpose. Analysis of logistics outsourcing services from the viewpoint of Ukrainian manufacturing companies and comparison of survey results based on the survey with global trends. Results. It was found that from the list of enterprise groups classification (micro, small, medium, large) all categories use the services of freight forwarding companies. The following types of logistic processes are most often outsourced: transportation, lease and maintenance of equipment, warehousing, logistic chain optimization. It was found that among other countries in the study of third-party logistics, Ukraine occupies the lowest position in the usage of outsourcing services in logistics. The reasons for outsourcing logistic processes in logistics are significant: lack of own resources and capacity, cost reduction. The relationship between causes and logistic processes has shown that in order to reduce logistic costs in the enterprise it is necessary to outsource transportation. Conclusions. Statistical research has shown a small relationship between the areas of logistic outsourcing and the main causes of outsourcing of logistic activities. Therefore, it is not appropriate to say that some logistical measures should be outsourced and others should not. The mixed system, which combines the usage of own and third-party production facilities, is the most suitable for most Ukrainian manufacturing companies Keywords: logistics, outsourcing, third-party logistics, transport, warehousing, supply chain management, optimization, respondent, survey.

2017 ◽  
Vol 1 (1) ◽  
pp. 86-106
Author(s):  
Anne Wanjiru Njoroge ◽  
Mr. Onserio Nyamwange

Purpose: The purpose of this study was to investigate challenges of import logistics outsourcing by manufacturing firms in Nairobi CountyMethodology: The research design of this study was a sample survey of the importers in the manufacturing industry as per the Kenya Association of Manufacturers. The total population of the companies in the manufacturing industry in Nairobi was 455 manufacturing firms. Primary data was collected via self-administered questionnaires with both open ended and closed questions that were designed to elicit specific responses for qualitative and quantitative analysis respectively. The data was analyzed by use of descriptive statistics.Results: The results indicated that the important reasons of outsourcing were satisfactory in explaining the decision by manufacturing companies to outsource. The reasons of outsourcing are a key determinant in deciding to outsource import logistics. The extent of challenges the importers face when importing services also determined the decision to outsource in the firms.Unique contribution to theory, practice and policy: The study recommends that the manufacturing firms should put more focus on core business functions and ensure reduction of overhead costs. They should take advantage of external expertise and experience and put measures to improve internal capabilities and expertise. The firms should reduce the total overall costs and where third party logistics providers provide a better service contract them. They should also emphasize on improved customer focus put measures to enable them compete effectively in the market.


2017 ◽  
Vol 1 (1) ◽  
pp. 86
Author(s):  
Anne Wanjiru Njoroge ◽  
Mr. Onserio Nyamwange

Purpose: The purpose of this study was to investigate challenges of import logistics outsourcing by manufacturing firms in Nairobi CountyMethodology: The research design of this study was a sample survey of the importers in the manufacturing industry as per the Kenya Association of Manufacturers. The total population of the companies in the manufacturing industry in Nairobi was 455 manufacturing firms. Primary data was collected via self-administered questionnaires with both open ended and closed questions that were designed to elicit specific responses for qualitative and quantitative analysis respectively. The data was analyzed by use of descriptive statistics.Results: The results indicated that the important reasons of outsourcing were satisfactory in explaining the decision by manufacturing companies to outsource. The reasons of outsourcing are a key determinant in deciding to outsource import logistics. The extent of challenges the importers face when importing services also determined the decision to outsource in the firms.Unique contribution to theory, practice and policy: The study recommends that the manufacturing firms should put more focus on core business functions and ensure reduction of overhead costs. They should take advantage of external expertise and experience and put measures to improve internal capabilities and expertise. The firms should reduce the total overall costs and where third party logistics providers provide a better service contract them. They should also emphasize on improved customer focus put measures to enable them compete effectively in the market.


Author(s):  
Aliona Grigorenco ◽  
Philippos Papadopoulos ◽  
Konstantinos Rotsios

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.


2019 ◽  
Vol 32 (6) ◽  
pp. 964-992 ◽  
Author(s):  
Qingyao Wan ◽  
Yang Yuan ◽  
Fujun Lai

Purpose The purpose of this paper is to explore how external pressures, internal capability and transaction attributes of logistics outsourcing synergically influence the extent of asset-based and non-asset-based logistics outsourcing. Design/methodology/approach Based on the data surveyed from 250 manufacturing companies in China, this study employed fuzzy-set qualitative comparative analysis (fsQCA) to deduce multiple configurations for logistics outsourcing decisions. Findings The results suggest that asset-based logistics outsourcing is primarily driven by external imitation pressures or internal demands for logistics technologies, while non-asset-based logistics outsourcing is mainly driven by the demands for external management-based logistics services. Asset specificity plays a positive role in promoting both asset-based and non-asset-based logistics outsourcing. The requirement for third-party logistics (3PL) management capability depends on the outsourcing types and outsourcing causes. Practical implications This study provides guidance to practitioners for them to make outsourcing decisions. It suggests that asset-based logistics outsourcing is more appropriate when there are high external imitation pressures or more internal logistics demands, while non-asset-based logistics outsourcing should be used only when a firm needs management-based logistics services. Besides, 3PL users are suggested to outsource their logistics when their 3PL providers are required to make specific investments. In addition, managers should carefully evaluate firms’ capabilities in managing outsourcing relationships. Originality/value Previous studies largely ignored the interaction effects of a set of factors on logistics outsourcing decisions, and to date, little research empirically examined how outsourcing is driven in terms of different types of outsourcing. Drawing on the institutional theory, dynamic capability view, and transaction cost theory and overarching under the complexity theory, this study examines how institutional, organizational and transactional factors interplay with each other to influence different types of logistics outsourcing (i.e. asset based and non-asset based). Methodologically, the configural analysis (i.e. fsQCA) is applied to explore complex causal configurations that drive logistics outsourcing.


2014 ◽  
Vol 114 (9) ◽  
pp. 1322-1343 ◽  
Author(s):  
Albert Wee Kwan Tan ◽  
Zhao Yifei ◽  
Dali Zhang ◽  
Olli-Pekka Hilmola

Purpose – The purpose of this paper is to identify global trends in the third-party logistics (3PL) industry, and with that to find out where the opportunities and challenges lie, what the critical success factors are, and how companies can position themselves well in China. As there is currently very limited knowledge about the 3PL industry in China, this study also intends to shed light in this area. Design/methodology/approach – The study is conducted through focus group interviews with senior executives of leading 3PL companies in China followed by a survey with 70 logistics companies. Findings – The key strengths of the logistics industry in China include numerous factors such as good connectivity and new infrastructure, while its main weaknesses are a shortage of qualified staff and slow adoption of technologies. There are a number of concerns and issues raised, such as lack of qualified staff, oversupply of warehousing space in China, competition from the influx of foreign 3PL companies to China, and regulations on free trade zones, seaports and airports, all of which may have policy implications. Research limitations/implications – As most of the logistics companies in the study are located and dominating in the Eastern and Southern China, it may be useful to conduct similar study in the new emerging western and central regions of China for comparison. Practical implications – Managers and investors will appreciate the challenges and opportunities in logistics services in China and have a better insight into Chinese logistics development. Originality/value – While China has been viewed as a cost effective place for manufacturing, the logistical costs in China are still very high as compared to other developed countries. This research will highlight the key reasons for the high logistical cost in China.


2003 ◽  
Vol 44 (156) ◽  
pp. 113-122
Author(s):  
Slobodan Acimovic

The importance and the position of mediators in the logistic business operations are generally determined through identifying logistics as a set of important business activities. Accordingly, this paper is designed so that the general characteristics of the logistics providers in the Western economies are presented in its first part, while the second part contains a short critical review of the condition of the logistics outsourcing market in our country. The text essentially refers to emphasizing great differences in both the general logistic knowledge and in the specific characteristics of the logistic mediation between the Western markets and ours. So far two kinds of mediation have been identified in the world: 1) Third party logistics (3PL firms) - partial, i.e. incomplete logistics mediators and 2) Fourth party logistics (4PL firms) - complete logistics mediators basing their activity on the full supply chain. In our country we succeeded in identifying only transport firms and/or shipping agencies as the logistics mediators with a rather limited scope of activity; and as their activity's name implies, they are performing only one or two logistics activities.


Author(s):  
Claudia Karrapan ◽  
Mndeni Sishange ◽  
Elana Swanepoel ◽  
Peter J. Kilbourn

Background: In South Africa, deemed the ‘gateway to Africa’, there is limited evidence of the existence of a survey ranking third-party logistics providers (3PLs). This lack of comparative information of the major 3PLs based on key outsourcing and ranking criteria complicates the selection process for companies that intend to contract 3PLs.Objective: The purpose of this article was to determine the critical selection and ranking criteria for the creation of an index to evaluate 3PLs in South Africa for developing a 3PL benchmarking index.Method: Survey data were collected from 103 of the Top 500 Companies in Africa that use 3PLs and operate within the sectors that mostly outsource logistics services in South Africa. A factor analysis method was employed.Results: Three factors for 3PLs selection converged: service quality, information management and compliance, and collaboration. The top three ranked categories for 3PLs selection are cost and price structure, service delivery and the relationship with the 3PL provider. Most respondents (90%) confirmed a need for a 3PLs index in South Africa.Conclusion: The results help managers with the strategic selection of 3PLs as these critical logistics outsourcing selection criteria can be used to evaluate and rank 3PLs prior to contracting. Based on the selection criteria for logistics outsourcing identified and ranked in this article, a ranking index for 3PLs in South Africa can be developed.


Author(s):  
Thierry Sauvage

Our work discusses the results of a survey among French logistics service providers. In a highly competitive context characterized by “time compression”, technological effort becomes a key variable and a means of differentiation between third‐party logistics providers. The success of logistics outsourcing relationships is entrenched in the third‐party's technological ability to improve the supply chain reactivity.


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