LOGISTICS OUT SOURCING & TRUST: CONCEPTUAL FRAME WORK Par (original) (raw)

Supply Chain Management and Logistics Outsourcing: Conceptual Framework

Journal of emerging technologies and innovative research, 2020

The objective of this article is to present a review of the literature relating to the phenomenon of outsourcing as part of the supply chain management approach. We shed light on the different definitions of outsourcing, as well as on the explanatory theories of the phenomenon of outsourcing. It will also be necessary to dwell on the concept of "supply chain", which makes it possible to understand the link between the phenomenon of outsourcing and the emergence of logistics service providers "LSP

Logistics Outsourcing: Lessons from Case Studies

Managing Global Transitions, 2012

This paper investigates key success factors in logistics outsourcing. A model is used to illustrate outsourcing relationships and then applied to three examples from the logistics sector. The model is presented as a tool which can help managers to minimize the chance of failure by explicitly addressing key issues prior to the implementation of a partnership. In order to fully capture the complexity of the outsourcing process, the model is refined by the analysis of implementation of outsourcing methodology and the analysis of the presence of outsourcing myths in each case. We find that the implementation of outsourcing methodology is critical to successful outsourcing. Overall, we find that the main common factors leading to logistics outsourcing success, after the right third party service provider has been selected, are improved service levels and commercial viability for both parties, joint vision and objectives of the partnership, clear roles, top management commitment and support, communication and trust. The results of the case analysis shed light on what is the key to a successful outsourcing relationship and indicate how the architecture of logistics outsourcing can be analyzed and improved.

Perspectives On Logistics Outsourcing

JOURNAL OF CRITICAL REVIEWS, 2020

General: Complex business environmental realities are increasingly compelling firms to revisit strategies, propelling them to focus on core competencies while outsourcing non-core business functions. Logistics outsourcing, thus, is no longer a choice but is a norm. Purpose: The research aims at outlining a taxonomy of perspectives on logistics outsourcing. Methodology: The qualitative research uses systematic literature review and relies on meta-synthesis using only secondary data. It endeavours to evolve conceptual framework of various perspectives related to logistics outsourcing. Findings: Review of logistics outsourcing through the lens of various perspectives, generates insight into ‗What', ‗Why' and ‗How' of logistics outsourcing. It emerges that various perspectives are prisms through which firms may prefer to view their outsourcing needs depending upon how firms perceive their own competencies, industry opportunities, and values that logistics service providers create. Research Implications: It helps identify research gaps and avenues for further research. It will help build theoretical and conceptual framework on logistics outsourcing. Value: The research identified other implicit perspectives that have not been recorded explicitly in extant literature. The research formalises some fresh perspectives viz Military/ Level/ Traditional & Disruptive Outsourcing Perspectives. These proposed perspectives are contribution to literature on logistics outsourcing.

OUTSOURCING THE LOGISTICS FUNCTION- A THEORETICAL OVERVIEW

Logistics is an integral part of every economy and every business entity. In order to remain competitive, many organisations are re-focusing their attention on their core competences and as such are outsourcing non-core functions. The worldwide trend in globalisation of business has led many organisations to outsource their logistics function to third-party logistics (3PL) companies in order to focus on their core business. It is important that organisations fully understand the implications of outsourcing in order to develop a strategy which will derive maximum benefit. Whilst much is known about 3PL from an general perspective, knowledge from a manufacturing perspective is limited which raised the question, "what effect does outsourcing the logistics function have on manufacturing companies?" The objective of this study was to identify the factors that organisations considered important in the decision to outsource. Further, benefits and limitations of outsourcing were identified.

How to establish and maintain outsourcing relationships between Logistics Service Providers and their clients?

2020

Purpose: What influences collaboration between LSPs and their clients in the midst of uncertainty lies in the analysis of supply chain collaboration between logistics service providers (LSPs) and their clients, with a main focus set on communication, coordination, and technological issues, (i.e. rational measures to achieve defined goals), resulting interdependencies and complexity as well as organizational coordination principles and mechanisms. Qualitative interviews with experts from leading LSPs on how they establish and maintain outsourcing relationships operationally were conducted and analyzed by open, axial and selective coding, following a grounded theory approach methodology. Coordination as a precondition for collaboration is based on communication between LSPs and their clients. The more complex and/or interdependent processes reveal themselves to be in an outsourcing relationship, the more intense coordination efforts have to be established and maintained for outsourcin...

The dark side of logistics outsourcing - Unraveling the potential risks leading to failed relationships

Transportation Research Part E: Logistics and Transportation Review, 2012

We identify and empirically examine the potential risk factors and their structural relationships that can cause a logistics outsourcing relationship to fail. Specifically, we investigate how the relationship risk as perceived by apparel wholesalers as user firms influence their evaluation on the asset and competence entrusted with their logistics service providers, which are logistics outsourcing risk factors considered important by the former in determining continued relationships with the latter. The results highlight the need for relationship management by user firms to mitigate the risks in asset and competence specifically invested in logistics service providers for their outsourced activities.

How to establish and maintain outsourcing relationships between Logistics Service Providers and their clients ? 101 – Complexity in Business : Insights and solutions

2016

Purpose: What influences collaboration between LSPs and their clients in the midst of uncertainty lies in the analysis of supply chain collaboration between logistics service providers (LSPs) and their clients, with a main focus set on communication, coordination, and technological issues, (i.e. rational measures to achieve defined goals), resulting interdependencies and complexity as well as organizational coordination principles and mechanisms. Qualitative interviews with experts from leading LSPs on how they establish and maintain outsourcing relationships operationally were conducted and analyzed by open, axial and selective coding, following a grounded theory approach methodology. Coordination as a precondition for collaboration is based on communication between LSPs and their clients. The more complex and/or interdependent processes reveal themselves to be in an outsourcing relationship, the more intense coordination efforts have to be established and maintained for outsourcin...

Logistics outsourcing and the role of logistics service providers from an industrial network perspective

The aim of this paper is to analyse logistics outsourcing and third party logistics from an industrial network perspective. The analysis of outsourcing from a network view clearly illustrates that outsourcing of logistics is not only about moving an activity from one firm to another. Owing to network interdependencies other activities and the links between these will be affected. Moreover, logistics outsourcing will impact on prevalent resource constellations and actor webs. In our analysis a particular emphasis is placed on the various roles of a logistics service provider and the interaction with the outsourcing company. We explore the variety of the roles of a logistics service provider and discuss these findings in relation to the approach of outsourcing firms. Our analysis showed that an interactive approach between the logistics service provider and the outsourcing firm would lead to benefits in several respects; for example (1) in the decision phase, (2) in determining the scope of the outsourcing arrangement, (3) in the regular provision of the services, and (4) with regard to the fact that the conditions for outsourcing arrangements and relationships change over time.

Logistics Services Outsourcing: Recommendations for Achieving Success

22nd Annual IMP Conference, 2002

The importance of services -including transportation -continues to grow, both in terms of their contribution to GDP and the share of workforce. Still, the issues associated with distribution, especially logistics outsourcing, although affecting a large part of firms' activities, have not received as much attention in the literature as they should be. Moreover, some firms still do not regard logistics as an important activity, and this may considerably harm their competitiveness. This paper aims to give suggestions to practitioners, whether to outsource logistics services at all and if yes, then how to select suitable service providers and achieve success in relationships with them.

Outsourcing of Logistics Functions : A Case Study Of A Moroccan Retailer

2015

For large retailers and manufacturers, the issue of outsourcing logistics activities to specialized service providers arises for thirty years. It resulted in the creation of powerful companies like Kuehne + Nagel, Norbert Dentressangle whose job is to offer their clients a personalized logistics services, including a multitude of components (e.g. transport, order picking, inventory management, creation of promotional items, etc.).Therefore, the aim of this paper is to provide theoretical insights into the logistics outsourcing phenomenon and to trace the evolution of the job and offer of LSP. We are also interested in the characteristics of shipp er-LSP relationship. A qualitative study was conducted with a major player in the M oroccan mass retail industry, who has outsourced some of its logistic activities to a worldrenowned LSP few years ago.