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Strategic logistics outsourcing: upstream-downstream supply chain comparison

Saleh Fahed Alkhatib (Department of Business Administration, Faculty of Economics and Administrative Sciences, Yarmouk University, Irbid, Jordan)

Journal of Global Operations and Strategic Sourcing

ISSN: 2398-5364

Article publication date: 20 November 2017

1810

Abstract

Purpose

The purpose of this paper is to develop a new integrated approach for the strategic logistics outsourcing process through identifying the logistics independent success factors (ISFs) and linking them with the firm’s strategic objectives and logistics requirements. Then, the new integrated approach will be used to compare the outsourcing processes for the upstream and downstream supply chain members. Studies of logistics outsourcing reveal the strategic importance of this process and the increasing need for new strategic approach.

Design/methodology/approach

The design is based on mixed methodology and integrated approach. The fuzzy decision-making trial and evaluation laboratory technique has contributed to the construction of interdependent relationships, development of impact-relationship maps (IRMs) and identifying ISFs. The fuzzy quality function deployment technique was used to link the strategic objectives, logistics requirements and the ISFs to evaluate and select logistics service providers (LSPs) strategically. Finally, two case studies (upstream and downstream supply chains) are used to demonstrate the new approach effectiveness and to highlight the differences/similarities between the two streams.

Findings

In addition to the new strategic logistics outsourcing approach, this study analysed the impact relationships of the LSPs’ framework factors and constructed their maps. In all, 21 ISFs have been identified: 8 logistics key performance indicators, 7 logistics services and activities and 6 logistics resources and capabilities. The two streams’ comparison relived several differences in terms of strategic objectives, logistics requirements and ISFs.

Research limitations/implications

The new approach for strategic logistics outsourcing can help firms to perform a better multi-stakeholder multi-criteria strategic outsourcing process. In addition, the upstream–downstream supply chain comparison increases our understanding how different supply chain members perform different outsourcing processes.

Originality/value

This is one of the pioneering studies that compares the supply chain upstream–downstream perspectives to highlight logistics outsourcing similarities and differences. To the best of author’s knowledge, this is one of the first logistics outsourcing studies that identifies ISFs for strategic logistics outsourcing, provides the first IRMs for the strategic logistics factors and develops a new integrated approach for strategic logistics outsourcing

Keywords

Acknowledgements

The author acknowledges the contribution of two anonymous reviewers and thanks them for their valuable comments and constructive suggestions to improve the manuscript. A special thank for the journal editorial team for their valuable comments too.

Citation

Alkhatib, S.F. (2017), "Strategic logistics outsourcing: upstream-downstream supply chain comparison", Journal of Global Operations and Strategic Sourcing, Vol. 10 No. 3, pp. 309-333. https://doi.org/10.1108/JGOSS-08-2016-0024

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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