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1 – 10 of over 3000Raman Kumar, Harwinder Singh and J.S. Dureja
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…
Abstract
Purpose
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.
Design/methodology/approach
The initial approach to this research was to develop a comprehensive framework for logistic outsourcing problem and selection of most appropriate third party logistic (3PL) provider.
Findings
It has been found that the organization should outsource logistic activities. The alternatives (3PL providers) have also been ranked and the fifth 3PL provider has been termed as best third party logistic provider.
Research limitations/implications
The parameters selected for this study and developed framework are applicable only to a medium‐scale organization manufacturing automobile parts in northern India.
Originality/value
This is probably the first time that an attempt has been made to apply the two‐phase methodology approach, using CFPR and VIKOR, to analyze a multi‐criteria logistic outsourcing problem. A case is provided which demonstrates how to solve logistic outsourcing, a multi‐criteria decision‐making problem.
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Ming‐Chih Tsai, Chun‐Hua Liao and Chia‐shing Han
This paper aims to develop a qualitative risk model to empirically identify the important outsourcing risks of logistical functions using the data of Taiwanese retail chains.
Abstract
Purpose
This paper aims to develop a qualitative risk model to empirically identify the important outsourcing risks of logistical functions using the data of Taiwanese retail chains.
Design/methodology/approach
Transaction cost theory (TCT) and resourced based view (RBV) were combined to develop risk events. Analytical hierarchy process was used for risk calibration. Valid data from 75 outsourcer chains and 41 in‐house chains were collected through a three‐stage survey. Outsourcers were further clustered by risk perception using Wards' and K‐mean clustering and examined by an ANOVA. Results of outsourcers and in‐house chains were compared using nonparametric Spearman rank correlation test.
Findings
The risk perception increases as the number of functions outsourced increases. Risks related to transaction costs and strategic resources were both significant. Of the three main risks identified, asset risk and competence risk are more serious concerns than relationship risk. The values of information risk and loss of control account for the bulk of asset risk, while those of poor competence leverage and poor competence in supporting customer service comprise competence risk. Finally, in terms of risk priority, in‐house chains showed no significant difference from outsourcers.
Research limitation/implication
Interrelationships between risk events were limited to avoid complication. Also, due to the sample limit, the risks calibrated may be more associated with outsourcing execution than outsourcing building/abandoning.
Practical implication
The risk structure developed herein can be used as a systematic checklist for outsourcing decision‐making. The qualitative results may provide specific indications for further risk analysis and future risk control.
Originality/value
The study fills a gap in the literature, where prior work has seldom used empirical research to compare how well TCT and the RBV predict logistics outsourcing risk, in particular for the distribution side of the supply chain.
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Anna Azzi, Alessandro Persona, Fabio Sgarbossa and Mauro Bonin
The purpose of the present research is to explore the current situation and future expectations on whether to self‐manage or outsource logistics operations in centralized…
Abstract
Purpose
The purpose of the present research is to explore the current situation and future expectations on whether to self‐manage or outsource logistics operations in centralized healthcare networks, and to analyse and quantify the relationships between logistics outsourcing, costs and performance.
Design/methodology/approach
The paper is based on a thorough study of a local Italian healthcare network, which evaluated the economic sustainability of logistics outsourcing. The data were collected using interviews, documentation and observations in hospital pharmacies and wards, and by referring to public information available on the internet. A system dynamic simulation followed by a sensitivity analysis was used to investigate the impact of changing key variables as well as the advice of logistics providers.
Findings
The sensitivity analysis demonstrates that logistics outsourcing is often the most economical choice.
Social implications
Performance‐oriented concepts applied to healthcare have many pros in terms of sustainable delivery of quality healthcare at affordable costs.
Originality/value
While there are numerous studies on logistics outsourcing in many industries, when it comes to the healthcare sector literature is scarce, probably due to the great changes this sector has faced in recent times: thus, the paper's quantitative findings should be seen as a first attempt to assist the “make‐or‐buy” decision process toward sustainable development of the healthcare sector.
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The aim of this research is to underscore the pivotal role of warehouse management in the current turbulent global landscape exacerbated by the confluence of a health crisis and…
Abstract
Purpose
The aim of this research is to underscore the pivotal role of warehouse management in the current turbulent global landscape exacerbated by the confluence of a health crisis and geopolitical instability in Europe. In today's interconnected global economy, the turbulence of the global supply chain causes a lack of its resilience among companies. Facing this critical crisis context, companies are refocusing on business processes and outsourcing support processes such as logistics. In this paper we have empirical and methodological objectives. Methodologically, we employ a qualitative research approach utilizing action research in a collaborative framework that involves academics and practitioners. The purpose of this methodology is to empirically investigate warehouse outsourcing as a solution for enhancing a company's performance and agility within the crisis context.
Design
The authors’ action research based on case study approach is conducted through an immersion within the ALCL French multinational company located in Morocco. The authors mobilize the theory of constraints, which allows us to set up a process of identification and optimization of managerial constraints (Goldratt, 1990). The approach allows to set up a retroactive loop to increase the performance of the constraint.
Findings
The study shows that ALCL has a storage over-dimension constraint due to the decrease of physical flows caused by the global crisis. The results of action research protocol show that the optimization of warehousing constraint is achieved by the total outsourcing of the process.
Originality
The study provides new insights into how action research can improve management practices within companies and explore concrete solutions to the logistical challenges faced by businesses.
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François Fulconis, Jean Nollet and Gilles Paché
The purpose of this viewpoint is to analyze the emergence of a modified equilibrium in the relationship between buyers (“shippers”) and suppliers (“providers”) of logistical…
Abstract
Purpose
The purpose of this viewpoint is to analyze the emergence of a modified equilibrium in the relationship between buyers (“shippers”) and suppliers (“providers”) of logistical services. In the 1990s, the logistical service providers (LSPs) had relatively little power and were often asked to perform basic operations. The situation has evolved as a result of proactive strategies implemented by some forward-thinking LSPs. In this viewpoint, the emphasis is on the strategies developed by shippers which the authors labeled the “ramp effect”.
Design/methodology/approach
The authors discuss the impact of the ramp effect on LSPs’ innovation processes. This viewpoint is based on the authors’ experience in the field, on a literature review focused on the logistics industry and on the purchasing strategies applied to logistical services.
Findings
The authors show that the buyers of logistical services have lost some of their power because of two main factors: LSPs’ embeddedness in the shipper’s supply chain and the transformation of LSPs into orchestrators (labeled fourth-party logistics). This viewpoint discusses the relational disequilibrium between shippers and LSPs rather than the cooperative relationships between them.
Originality/value
The ramp effect as a source of innovation and proactive strategies for LSPs has never been covered in the management literature. This viewpoint provides both academics and practitioners with a different perspective of the relational disequilibrium between buyers and sellers of logistical services.
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This study discusses the influence of logistical immediacy on logistics service providers' (LSPs’) business. Specifically, its role in the face of the emerging business scenario…
Abstract
Purpose
This study discusses the influence of logistical immediacy on logistics service providers' (LSPs’) business. Specifically, its role in the face of the emerging business scenario (e-commerce, disruptive technologies, and new models of logistical services) is examined.
Design/methodology/approach
As logistical immediacy is a nascent topic, this study utilizes a systematic literature review focusing on academic articles from the last five years related to logistical outsourcing to understand the changes imposed by logistical immediacy on LSPs.
Findings
The impact of transformations arising from an increasingly digital virtual world (DVW) on LSPs is contextualized. A theoretical view of the factors affecting LSPs' shift towards more immediate operations is presented, and how logistical immediacy impacts LSPs is discussed. Finally, a research agenda is presented as the study's main contribution.
Research limitations/implications
Due to the timeframe chosen, the restriction to a single database (Scopus), the specific search terms used related to LSPs, and limiting the search parameters to operations management, some relevant work may have been overlooked.
Practical implications
The article help LSPs' and contracting companies' managers to understand the influence of the immediacy expected in logistics operations. Possible logistics services trends and how they may impact companies are discussed.
Originality/value
This is one of the first articles in the area of operations and supply chains that addresses the issue of logistical immediacy and its impact on LSPs.
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Saurabh Agrawal and Rajesh Kumar Singh
Outsourcing has become a strategic decision for most of the organizations in the present context of globalization and circular economy. The objective of proposed study is to…
Abstract
Purpose
Outsourcing has become a strategic decision for most of the organizations in the present context of globalization and circular economy. The objective of proposed study is to empirically investigate the relationship between the outsourcing benefits and triple bottom line (TBL)-based performance of reverse supply chain (RSC) comprising of economic, environmental and social factors.
Design/methodology/approach
In the present study, the partial least square path approach of structural equation modeling has been applied for testing hypotheses. A questionnaire was developed for collecting the information and responses from the experts of electronics industry, India. Measurement models were tested for ensuring the fitness of data for further applying partial least square path approach of SEM.
Findings
The results provide insightful information on outsourcing and RSC performance. It reveals that outsourcing decisions are important and have great influence on the economic, environmental and social performance of RSC.
Research limitations/implications
The study will provide useful guidance to the organizations for outsourcing decisions. One of the limitations of the study is that it has considered data collected from the Indian electronics industry. Therefore, results may not be generalized.
Originality/value
The third-party service providers have core competencies, and they are the experts of providing RSC services. It is also apparent from the exploration of past research and theoretical background that there are limited number of studies focusing on the impact of outsourcing decisions in RSC performance specifically from the TBL perspective. Hence, the proposed study is an effort to explore the impact of outsourcing RSC activities on the performance of RSC from a sustainability perspective.
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Reverse logistics has been seen as a necessary cost of business, but more companies are seeing it as a core strategic activity. Every firm needs to find more efficicient ways of…
Abstract
Reverse logistics has been seen as a necessary cost of business, but more companies are seeing it as a core strategic activity. Every firm needs to find more efficicient ways of reclaiming, redistributing, and disposing returns. For a fast growing industry, however, it is difficult to focus on structuring internal processes for reverse logistics because its emphasis is always on time to market and growing sales. In order to capture the most updated trend in the field of reverse logistics, this paper describes best practices of reverse logistics in hi-tech industry and identifies barriers in implementing those practices. The focus areas of the benchmarking survey are outsourcing of the logistics function, organization of the logistics function, return management, and sustainability-green issue. Based on the survey results, we provide an insight for capturing these trends and leveraging them as a strategic core competency for this industry.
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Francesco Calza and Renato Passaro
Unilever‐Sagit is the main Italian competitor in the Italian frozen food market. The company has very recently innovated its distribution channel by creating a private Electronic…
Abstract
Unilever‐Sagit is the main Italian competitor in the Italian frozen food market. The company has very recently innovated its distribution channel by creating a private Electronic Data Interchange (EDI) network. Examines the effects generated by the implementation of EDI technology on supply chain management. Discusses the theoretical aspects of the impact of EDI on strategic management of logistics and examines the Unilever‐Sagit EDI network in detail.
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Adriana Rossiter Hofer, Yao Henry Jin and A. Michael Knemeyer
This study follows the tenets of the resource dependence theory (RDT) to investigate the effects of four dimensions of industry-level environmental uncertainty – munificence…
Abstract
Purpose
This study follows the tenets of the resource dependence theory (RDT) to investigate the effects of four dimensions of industry-level environmental uncertainty – munificence, dynamism, complexity and innovative intensity – on a shipper's cross-buying (i.e. outsourcing across multiple service categories) in logistics outsourcing arrangements.
Design/methodology/approach
Negative binomial regression was used to test the hypotheses with a sample of US manufacturers. Measures were developed through information acquired from a proprietary database of 3PL companies obtained through Armstrong and Associates, Inc. and publicly available industry measures from the US Manufacturing Census and Compustat.
Findings
The findings indicate that individual dimensions of environmental uncertainty exhibit distinct influences on shippers' cross-buying in their logistics outsourcing arrangements. Specifically, the growth and initial innovative intensity of shippers' industries lead to an increased number of logistics service categories outsourced to 3PLs, while industry dynamism and exceptionally high innovative intensity drive the opposite effect.
Practical implications
These findings provide valuable guidance to 3PLs with respect to decisions related to the acquisition of specialized transportation, storage, information systems and personnel assets to serve specific industries. The findings highlight industry conditions that are more likely to lead shippers to outsource across a wider array of logistics service categories and, as a result, potentially yield higher customer retention and profit margins.
Originality/value
While extant 3PL literature posits that shippers' individual strategic orientations and capabilities impact their outsourcing strategy, this study contributes to the literature by providing a theoretical-based empirical examination of the industry-level influencers of such behavior.
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