The purpose of this paper is to present a decision-making framework for outsourcing levels of logistics activities. These are: execution level of basic activities (such as transportation, warehousing); value-added activities; planning and control level of activities (such as transportation and inventory management); and strategic decision-making level of activities (distribution network design).
Global sourcing is becoming a prerequisite for companies competing in today’s market. The logistics costs often comprise a large portion of the total global sourcing cost, thereby determining the effectiveness of this procurement strategy. However, evaluating the logistics cost in a global context is frequently difficult. This paper presents a five-step evaluation framework and illustrates ho…
The ability to satisfy customer demands while responding to relentless competitive pressure requires creative and often complex approaches to managing a firm's supply chain. Perhaps more than any other area, executive managers increasingly believe that a concept called globalization offers the best opportunity to achieve major performance gains. One area where many companies can begin to captur…
Just‐in‐time (JIT) systems have evolved from a few selected implementations in the automobile industry into a widespread business practice. Early understanding of JIT models indicated that JIT can reduce inventory in the production system through the elimination of wasteful activities. This understanding led some researchers to suggest that JIT warehousing or JIT logistics are contradiction…
The purpose of this paper is to investigate how perceived service quality influences both a shipper’s satisfaction and subsequent loyalty in third-party logistics outsourcing relationships.
The purpose of this paper is to report on a study of a shipper’s dilemma as a customer. Shippers desire both lower costs and good service levels, and this dilemma may lead in the long run to a trade-off consideration between staying loyal to existing service providers and seeking cost reductions from competing providers.
This research aims to determine the current situation of outsourcing logistics activities in Turkey, a country which has a great potential for logistics activities among the surrounding continents because of its geographical location.
In most developed economies the costs of logistics management are steadily growing and account for an increasing proportion of the gross national product. Logistics costs have become an important part of the added value of products and logistics management is increasingly regarded as an important weapon in the international competitive struggle, in particular by large market‐oriented companie…
A survey of 372 logistics managers in different industries revealed multiple outsourcing linkages among logistics activities. These results are consistent with previous findings that suggest that firms can improve customer service and reduce costs by outsourcing multiple logistics functions. The results are also consistent with previous research on the role that improved coordination of informa…
The purpose of this paper is to provide an insight to the outsourcing decision-making through investigating if the old evaluation/selection criteria and methods still fit with current business priorities or not and, therefore, to identify the appropriate criteria and methods to develop a new selection framework. Since the economic recession of 2008, logistics outsourcing decisions have become m…
The purpose of this paper is to investigate the issues pertinent to sourcing internationally from low-cost countries (LCCs) and to understand which issues are associated most strongly with a firm’s logistics performance.
The purpose of this paper is to identify the components required for more robust landed cost models given the now widespread interest in sourcing finished goods, components for assembly, and basic raw materials from global sources. This study also seeks to establish the need for broad-based participation in operationalizing such models.
In this paper, the management of variety in automobile manufacturing is broadened from simply considering the choice of models, options and parts to include strategic issues in sourcing and logistics systems. Some of the major cost elements associated with varietal increase are identified, leading into a discussion of how logistics system redesign can reduce or, indeed, eliminate the unwanted i…
The purpose of this paper is to report on research undertaken to investigate whether current reverse logistics theories and models can be totally applied in developing countries like China using the electronic industry as a case study.
The purpose of this paper is twofold: first, to develop a typology of co-located supplier clusters, such as logistics centres or supplier parks, and second, to evaluate the theoretical perspectives at hand to investigate the co-location phenomenon.
To present a multi-attribute approach for the selection and ranking of the most suitable 3PL service provider.
Logistics has become an essential service for synchronous companies. Many companies have recognized the potential benefits gained through a high quality system of logistics services, which are provided either internally or externally by a third party logistics company (3PL). The 3PL is positioned between the company and its customers, in a new-shaped logistics triad, having a crucial role in ha…
The purpose of this paper is to examine how goal achievement and goal exceedance influence the aspects of loyalty in logistics outsourcing relationships. Specifically, it aims to develop and test a model of customer loyalty across two cultures to determine if dedicated strategies for building loyalty are required.
The purpose of this paper is to establish a scale for the measurement of proactive improvement, in general, and then more specifically in terms of cost- and service-focused improvement in logistics outsourcing arrangements.
The purpose of this paper is to make out a complete solution to logistic outsourcing problem in a medium-scale organization by using consistent fuzzy preference relation (CFPR) and vlsekriterijumska optimizacija i kompromisno resenje (VIKOR) method.
To develop a prescriptive model that provides effective guidance in the early stages of outsourcing processes, while taking into the decisionmakers’ bounded rationality.
To investigate the status of third party logistics (3PL) in Mexico and the feasibility of 3PL as a global, uniform strategy.
Near sourcing is starting to be regarded as a valid alternative to global sourcing in order to leverage supply chain (SC) responsiveness and economic efficiency. The present work proposes a decision-making approach developed in collaboration with a leading Italian retailer that was willing to turn the global store furniture procurement process into near sourcing.
Highlights insights gained from five years of operating experience in a logistics partnership between a large US retailer and a provider of international logistical service. The insights gained from this partnership show that a third-party logistics provider can help a firm achieve substantial results. The path to achieving these results is not without its difficulties, but many of these proble…
This paper investigates customer perceptions on three key logistics outsourcing decisions: why to outsource, what to outsource and how to manage satisfaction within third party logistics providers (3PLs) partnerships. In addition to an analysis of the current literature, a Europe-wide postal and telephone survey revealed that outsourcing in the consumer good industry is heavily service driven a…
The purpose of this paper is to explore the current state of and future expectations concerning the usage of the outsourcing of logistics operations in small- and medium-sized enterprises (SMEs), and to analyse and quantify the relationships between logistics outsourcing, costs and performance, financial performance, and the company context.
The purpose of this paper is to clarify the impact of international outsourcing on manufacturing strategy and performance of apparel manufacturing firms. The authors aim to show how managers address the effects of international outsourcing on four dimensions of manufacturing strategy – cost, quality, flexibility and delivery.
The aim of this research is to undertake a comparative analysis on the use of third party logistics (3PL) services by manufacturing firms in Singapore and Malaysia.
Begins by reviewing the need to outsource logistics activities. Asserts that a new market-led business philosophy has become the core competence of companies that are serious about their survival. Addresses the question of whether there is a need for localised services and whether the development of suppliers into giants who can dominate the market is good for users, clients or consumers. Expre…
Information and communication technology (ICT) plays a critical role in supporting logistics services outsourcing arrangements. Despite the literature highlighting the benefits of ICT usage by logistics service providers (LSPs), a gap between what is expected of ICT and satisfaction with LSP performance has persisted. Seeking to reduce this gap, the purpose of this paper is to propose an ICT im…
This study attempts to provide insight into the dynamics of the third party logistics (3PL) industry in the Asia-Pacific (APAC) region.
With competitive pressures placing an increasing dependence on the ability of organizations to deliver customer-adapted products quickly and on time, logistics has been an area that has been subjected to investigation. While there is a growing evidence of organizations increasingly seeking to outsource their logistics activities, there have been few comprehensive studies on the outsourcing of l…
This research analyzes and tests the impact of some resource-based determinants on sourcing decisions in an IS domain.
The purpose of this paper is to attempt to answer the questions posed by the special issue editors using insights from leading academics in the field and case examples drawn from two renowned global companies. It also aims to define potential avenues for further research in the thematic areas covered.
Although noticeable improvements have been made in global health in recent years, the distribution is uneven throughout the world and many developing and low-income countries lack access to required medicine and vaccines. Thus, a model to strategically source vaccines for these nations can contribute a great deal. This paper aims to present an extensive review of strategic sourcing literature, …
As business firms and even public sector operations opt to run leaner operating systems, the question of outsourcing becomes an increasingly popular topic for discussion. There are substantial differences between countries and between industries on what is considered “best practice” in outsourcing. There is ample evidence that some of these views on outsourcing are changing and will continu…
The purpose of this paper is to investigate the effects of logistics outsourcing in Northern Europe through survey research. Research work intends to shed more light on logistics outsourcing with other than case-based company examples.
The aim of this research is to reveal the security-related outsourcing strategies of the tublic sector and the military and the relevant logistics outcomes by examining buying tactics.
This paper aims to present a study on the organization of military logistics under “hot” conditions in an expeditionary crisis response operation. The authors' main research question is: in what way is armed forces logistics sourcing organized in the International Security Assistance Force (ISAF) in Afghanistan?
Illustrates the scope of the benefits resulting from a strategic partnership approach to outsourcing, as opposed to the traditional sub‐contracting approach which typically delivers only partial solutions to what, on the face of it, appear peripheral problems. Presents the case of Alistair McIntosh Limited, an independent business specialising in the provision of managed print solutions thr…
Just‐in‐time (JIT) has been written about since the early 1970s. Studies have investigated the growth of JIT sourcing and its implications. However, there has not been as much discussion of the issues faced by companies involved in the pursuit of JIT sourcing in a global supply chain. Undertakes a systematic review of the JIT sourcing and logistics literature and highlights key findings. …
To provide empirical evidence on the level of savings that can be attained by joint route planning and how these savings depend on specific market characteristics.
In an era of global sourcing, the multinational firm′s success often hinges on the most appropriate selection of its foreign suppliers. International supplier selection, however, is very complicated and risky owing to a variety of uncontrollable and unpredictable factors affecting the decision. These factors may include political situations, tariff barriers, cultural and communication barri…
Looks at empirically evaluated information technology (IT) utilization in the logistics process in the Spanish detergents and electrical appliances sectors, focusing on the issues around information integration with third‐party logistics providers. IT utilization was higher among larger companies. The outsourcing level was significantly correlated with the utilization of electronic data int…
Rising production costs in coastal China have caused the popularity of the “China plus one” strategy, and the hike in oil prices favors nearshore outsourcing to reduce transportation costs. Taking into consideration supply chain strategy, this paper aims to investigate the impacts of these major business environment changes on manufacturing outsourcing in China.
The purpose of this paper is to develop a theoretical framework involving dependence, relationship commitment, logistics outsourcing and service quality to exhibit the roles of the relational factors involved in logistics outsourcing and their outcomes.
This article is based on two studies, partly financed by the Norwegian Research Council. The first study was carried out in six organizations cooperating in two supply chain alliances. The purpose of this study was to develop a set of hypotheses concerning logistics service providers and their roles in supply chain alliances. The second study, involved interviews carried out in 12 different log…
The purpose of this paper is to develop material for classroom teaching in the subject area of general management with retail industry focus.