Model for Evaluating Outsourcing Logistics Companies in the COVID-19 Pandemic

The COVID-19 pandemic has severely affected the world’s manufacturing industry, particularly in terms of the continued increase in logistics costs that has led to an increase in business operating costs. This study proposes a two-stage model for evaluating the most appropriate outsourcing logistics companies for a manufacturing factory. In the first stage, a modified Delphi method was used to recruit experienced experts to determine criteria for evaluating outsourcing logistics vendors and establish a hierarchical structure. In the second stage, the analytic hierarchy process (AHP) was used to evaluate suitable logistics companies based on the hierarchical structure. Finally, a case study was conducted to demonstrate the suitability of the two-stage model for evaluating outsourcing logistics companies for reducing logistics costs while maintaining service quality. The proposed model can be used as a basis for evaluating outsourcing logistics companies.

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.

Factors Determining Adoption of Outsourcing Logistics Functions: A Study of Manufacturing and Trading Sectors in Sri Lanka

This study aims at identifying the determinants of adoption of outsourcing logistic functions in Manufacturing and Trading companies in Sri Lanka. After careful review of the existing literature perceived cost effectiveness, quality concerns of logistics outsourcing, perceived risk and perceived professionalism of logistics service provider were identified for the study as their high theoretical and empirical importance in determining outsourcing decision. Primary data was collected by means of semi structured questionnaire from 60 organizations that carry out manufacturing and trading businesses in Sri Lanka. The collected data was analyzed using descriptive statistics and simple and multiple linear regression analysis. Initial simple linear regression analysis proved the statistically significant impact that each of the identified variables have on the adoption of outsourcing. However the multiple regression estimated in this study to analyze the collective effect of the suggested model concludes that the decision makers perception about the cost effectiveness of outsourcing and their perception of risk of outsourcing better explain the adoption of outsourcing in Manufacturing and trading sector in Sri Lanka. Hence, the outsource decision depends on the careful assessment of the decision-making company on its cost effectiveness and possible risk. Therefore, the findings of the present study suggest that outsourcing partners should be carefully selected in order to get the benefit of outsourcing.

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

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.

Enhanced Logistics Information Service Systems Performance: Using Theoretical Model and Cybernetics’ Principles

Outsourcing logistics has established itself in the area of the LSP (Logistics Service Provider), which offers a range of services to its customers. In this line, transportation is characterized as one of the most important services, and therefore efficient fleet management is essential for establishing a high level of customer service. In this paper, we considered intellectual procedures for modeling the management of logistics information service system in the class of the problem, solved method of the theory of queuing system (QS). Examples of constructing mathematical models for the management of logistics information systems are given.

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.

Competing Through Logistics Management

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.

Applying the Delphi method to determine best practices for outsourcing logistics in disaster relief

Purpose The purpose of this paper is to determine best practices of aid agencies for outsourcing logistics to commercial logistics service providers (LSPs) in disaster relief. Moreover, it evaluates the application of the Delphi method for research in humanitarian logistics. Design/methodology/approach The paper is based on a two-round Delphi study with 31 experts from aid agencies and a complementary full-day focus group with 12 experts from aid agencies and LSPs. Findings The study revealed 12 best practices for outsourcing logistics in disaster relief and a compilation of more than 100 activities for putting these practices into action. Experts consider a proper balance between efficiency and compliance, a detailed contract and a detailed service request most important. Additionally, the Delphi method was found to be a promising technique for research on humanitarian logistics. Research limitations/implications By critically examining the Delphi method, this study establishes the basis for a wider application of the technique in the field of humanitarian logistics. Furthermore, it can help to prioritize future research as the ranking of practices reflects the priorities of practitioners. Practical implications The paper provides guidance to practitioners at aid agencies in charge of outsourcing logistics. Originality/value This research is one of the first in the field of humanitarian logistics to apply the Delphi method. Moreover, it addresses the lack of literature dealing with approaches for building successful cross-sectoral partnerships.

Framework built on resource based view for outsourcing strategy on hiring logistics service provider

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.