• International Commerce and Information Review
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• v.14 no.3
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• pp.281-306
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• 2012

Global competition has resulted in companies' expectations to heighten competitiveness and enhance customer service through ownership companies' reduced investment on logistics costs, in turn focusing on the development of core competence, in addition to logistics companies' increased tendencies to satisfy customers' needs and requirements through logistics outsourcing. However, a partial perspective of the logistics contract exists due to its flexible characteristic in order to act accordingly in times of sudden changes and uncertainty. Therefore, this study is designed to test through a survey the standard of desired format of logistics contract in comparison to the currently existing format based on the results of researcher's previous study on the specific clauses in the logistics contract and its effect on the logistics outcome. A hypothesis has been designed to test the differences of perspective between two test groups, and a t-test &IPA (Importance-Performance Analysis) was performed. As a result, firstly, there was a significant difference of perspective between the ownership companies and logistics companies when dealing with the logistics contract; secondly, a significant difference of perspective was also expressed between the two groups on how to guide and re-direct the present standard of logistics contract. In addition, the two groups also showed a difference of expectations between the current and future service standard. Therefore, this study is designed to specify the difference of perspective and expectations between the ownership companies and the logistics companies in order to provide a gateway for the two groups in order to further develop and enhance the field of logistics.

• Proceedings of the Korean DIstribution Association Conference
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• 2000.10a
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• pp.47-59
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• 2000

Following the increasing importance of logistics function in today's company operation, this work explores the mechanism for cooperation within a supply chain, especially between a firm and an independent logistics supplier. We first characterize the optimal linear logistics contract based upon the recent developments in contract theory, and then investigate the effect of such a contract on the firm's inventory policy. The results indicate that the order quantity becomes smaller and the lead time becomes shorter and under the optimal contract than without the incentive scheme. Accordingly, the service level under the optimal contract becomes higher. These findings are in accordance with the literature on vertical control and JIT (Just in Time) philosophy.

• Journal of Korea Port Economic Association
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• v.25 no.3
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• pp.93-116
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• 2009

As the popularity of logistics service outsourcing has been continuously growing, one of the most frequently addressed issues is how to estimate the effect of cost reduction for users and profit gains from outsourcing contract for providers. Many manufacturing companies agree that logistics outsourcing helps to reduce their operating costs, but some other companies still do not achieve the cost saving or do not trust logistics service providers, so they keep up in-house logistics operations. On the other hand, logistics service providers have low profitability from domestic business activities since they should meet the requirements for highly customized and diverse services from customers and unstable market situation. This study provided the status report dealing with logistics service contracts in Korea. From the focused group interview with logistics professionals, we found out that service scope, scale and cost structure are the most influential factors affecting logistics service contracts. Also, logistics service providers are more sensitive than users regarding value-added logistics service, contract duration and process. Moreover, this study also proposed the standard clauses for logistics service contract and types of logistics contract applied in current logistics fields. As a result, it is expected that these achievements from this study can be utilized to improve the satisfaction of logistics outsourcing in upgrading service quality and customer service level.

• International Commerce and Information Review
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• v.18 no.1
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• pp.151-178
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• 2016

This study is based on precedent research on contract fairness to prevent irrational contract practices and enable long term mutual interests between logistic firms and shipper. Actual unjust contract examples were identified in order to help create this positive partnership. An analysis on the difference of perspective proved that while the logistics companies believed on the positive effects of the presence of additional expense clauses & potential risk clauses, the very same companies believed that the concretization of procedural & distributional equitability clauses will cause positive effects on the partnership between the logistics companies and the shipper. On the other hand, concretizationof the expense clauses brings about a negative effect for the shipper company. Also, the perspective of a logistics company appears that such results were identical to the empirical study which had a positiveeffect. However, the shipping company had a negative and a rather opposite point of view. These researches prove that there should be an alteration in perception for the shipper company. It is believed that the comparison of the results of this research and the leading researches may provide grounds for thought-provoking suggestions that must be concretized and also for those in need for further settlement for drafting the standardized logistics contract and its logistics.

• Korea Trade Review
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• v.44 no.6
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• pp.69-85
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• 2019

Logistics outsourcing businesses consist of the three main stages of bidding, contracting, and operations. This study focuses on the impacts of factors in the logistics outsourcing stages on outsourcing performance. Key factors in each stage may have direct influences on logistics partnerships and performance. Also, factors of each stage may impact the factors of subsequent stages. The relationships were examined using a structural equation model and verified by PLS (partial least square)-SEM methodology. Study results were as follows. First, the uncertainty of the shipper in the bidding phase affects the flexible contract in the contracting phase, and thus, affects the satisfaction of the logistics outsourcing services. Second, the uncertainty of the shipper in the bidding phase affects operations through contracts, and positively affects logistics outsourcing satisfaction through trust and cooperation.

• Journal of Korea Port Economic Association
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• v.28 no.2
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• pp.129-153
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• 2012

Even though logistics service outsourcing becomes widespread in manufacturing and service industries, logistics service providers encounter fierce competition and lower profit. Decreased profit has negative impact on service providers' competitiveness, which in turn threats successful relationship with shippers. In this paper, we investigate the factors which influence the performance of service providers. Factors related to service contract are examined and we test an effect of concreteness and fairness of service contract. PLS (Partial Least Square) modeling method is applied and validated using data from logistics service providing companies in Korea. In the model, service contract clauses are classified into two categories including cost and risk sharing terms. PLS analysis shows that partnership and performance of service relationship is improved when contract clauses are specified in detail. This study will contribute in providing an operational direction in effectively establishing a positive relationship between the logistics service provider and the shipper.

• International Commerce and Information Review
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• v.15 no.1
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• pp.35-65
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• 2013

In December 2012, the Ministry of Land, Transport and Maritime Affairs and Ministry of Knowledge Economy held a commission and distributed a standardized logistics contract between the shipper and the logistics companies in order to spread and to promote contract standardization. With such background in place, this study examines the leading research on different types and attributions in present logistics contracts in order to propose guidelines for creating contract clauses that would lead to a win-win relationship among the parties involved in the logistics outsourcing relationships. This study further compares and contrasts the concreteness of local and international logistics contracts through case studies, and provides practical thought-provoking points on concretization of clauses on potential risks and additional expenses for local logistics companies when signing logistics contracts. Firstly, the composition and contents of both local and international logistics contracts are similar in the way that both deal with the basic principles between the concerned parties such as the following: contract terms, validity, scope of work, operational procedures, payment terms, and dispute resolutions. Secondly, for flexibility of potential dispute resolution, both logistics contracts define the definition of dispute and follow the classical contractual approach of dispute resolution through third-party arbitration. Thirdly, compared to local contracts, international logistics contracts provide more concretized and specific clauses on the occurrence of potential risks and hazards; on the other hand, compared to international logistics contracts, it seemed that local contracts contained more clauses in favor of the shipper. This research then suggests ideas to eliminate the classic tradition - logistics companies enduring the damages that occur as a result of the structural differences between the shipper and the logistics companies - through efforts to actively negotiate in advance the predictable problems and risks and by reflecting the mutually agreed points in the contract, and further offers guidelines on contract concretization for distribution of standardized logistics contracts in the future.

• Journal of Korea Port Economic Association
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• v.25 no.4
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• pp.21-44
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• 2009

This study aims to understand the conditions for using logistics outsourcing of Korean enterprises, present existing problems, examine factors affecting utility, and analyze the pattern of logistics outsourcing based on contract term, and to ultimately contribute to enhancing competitiveness of logistics enterprises. Through the literature survey 8 factors were identified as three broad factors of corporate strategy, corporate characteristics, and environment. Factor analysis was conducted on the bases of 155 collected data among 400 distributions for 2 months from April to May in 2008. From the result of analysis, the implication and finding can be summarized into three aspects. Firstly, Korean companies value factors relative to corporate strategies as motivating factors for logistics outsourcing. Secondly, Korean companies consider logistics outsourcing depending on how to handle customers' demands and the severity of competition. Thirdly, it was found that product and organization characteristics are perceived as more important when contract term with logistics business is longer. The implications can be observed into two aspects. Firstly once the logistics outsourcing between manufacturers and logistics companies are determined, it was verified that mutual agreement, particular contracts and periodic communications can increase the outcome. Secondly the logistics outsourcing appeared to be different depending on the level of entering to foreign market and resulted in higher performance as well.

• The Journal of Korea Robotics Society
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• v.17 no.4
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• pp.387-396
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• 2022

Logistics industry still heavily relies on human labor in many field processes. However, robot applications in logistics are rapidly increasing, encouraged by technological progresses in robotics and cheaper robot solutions from competition between robot suppliers. Effectiveness of logistics automation are higher productivity for cost reduction and increased process capabilities for better profit, which is witnessed in many fields of logistics industry. In this paper, differences in logistics services - contract logistics, parcel, and fulfillment - are addressed, and characteristics and issues in application of various kinds of logistics robots such as AGV, AMR, ASRS, box/piece handling robots and robotic wearable devices are discussed. The advantages from flexibility and scalability of logistics automation by robots will benefit the future logistics business.

• Journal of Information Technology Applications and Management
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• v.26 no.6
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• pp.119-138
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• 2019

This work examines whether IT managers adopt of real options such as defer, expand, contract, and abandon in order to cope with ERP risks, which include technological risk, relationship risk with SW vendors, economic risk, and security risk. We collect data of logistics firms in Seoul and its suburbs in 2018 to empirically validate the effect of risks upon the adoption of real options. The results suggest that IT managers adopt all 4 options when facing economic risk and adopt contract and abandon options only when facing security risk. Additionally, we find that IT managers prefers expand option and avoid abandon option when they think ERP compatibility is high.