• 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.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.

• Journal of Distribution Science
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• v.12 no.4
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• pp.41-46
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• 2014

Purpose - This study focused on providing strategic findings that make significant sense for companies that are looking for a future outsourcing strategy. The study analyzes the results of outsourcing in the information logistics systems field and verifies the results through experimental study of the performance delivered by logistics outsourcing types. Research design, data, and methodology - The study sample was assembled based on a random sampling method used to extract the initial 451 companies from a list of Korean distributors, wholesalers, and retailers. Following that sample process, 423 companies were confirmed by verifying their e-mail address and contacts (telephone and fax numbers), and were selected as initial research subjects. We reduced that number to 331 companies for the survey sample through telephone interviews in advance with the 423 companies that were targeted, in order to verify whether they are in the field of outsourcing of information logistics systems. The period of the survey extended from November 10, 2013 to January 10, 2014. The number of collected surveys totaled 181. We reviewed the contents of the survey responses, and reduced the number of research subjects to 175. In this study, we used a standard analysis to investigate whether there is a difference in distribution results based on different types of outsourcing information in the logistics system field and, through T-verification, we investigated whether the difference between distribution results in each group resulting from that standard analysis is statistically significant. Results - These results show that there is a difference in distribution outcome, based upon type of distribution outsourcing. In addition, we determined that they are meaningful results by confirming that, for usability and to improve the capabilities of a third-party logistics service supplier, both the choice of reasonable outsourcing types and the enhancement of various types of alliances are very important success factors. Taken together these study results, with a goal of enhancing the distribution capabilities of a Korean distributor, can be implemented to enhance management results achievable by supplying an information logistics system in the form of strategic outsourcing rather than in the form of simple outsourcing. In addition, the outcomes of logistics distributors in Korea that are using outsourcing in the logistics information systems field show high performance results in commercial endeavors in the following order: competitive, pre-competitive, non-competitive, and pro-competitive. Conclusions - This study focused on providing strategic findings. However, in the case of outsourcing in the field of information logistics systems of Korean distributors, there has been a focus on simple outsourcing rather than on strategic outsourcing; furthermore, there has been a concentration on non-competitive forms instead of pro-competitive forms, which could achieve better distribution results. This discussion is presented in more detail in the analysis results of this study.

• Proceedings of the Korean DIstribution Association Conference
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• 2006.08a
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• pp.119-131
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• 2006

Reverse logistics (RL) covering the flow of products/parts in a reverse direction from product returns to product disposal. Companies are faced with a decision on whether to manage RL in house or to outsource it to a RL third party service provider (3PSP). A survey was conducted in 2004 to study RL outsourcing practices. Through the survey, various RL functions outsourced in industry are identified, and the factors considered to decide between in-house vs. outsourcing RL management are studied along with their importance. In addition, this research presents the performance measures of a 3PSP and problems faced by companies while managing RL in-house and outsourcing.

• Journal of Korea Port Economic Association
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• v.36 no.2
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• pp.19-36
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• 2020

The bidding phase for logistics outsourcing services is critical for both shippers and logistics companies. According to the logistics bidding phase, the shipper should provide logistics operation information to logistics companies to resolve uncertainty. In addition, the logistics company can win the contract volume that was placed in the bid by expressing their experience and know-how, and proposing to share the risks and benefits of the shipper's logistics operation. Therefore, it is necessary to examine the factors that can be identified during the bidding phase for logistics outsourcing and how these factors affect the satisfaction of logistics outsourcing services. Based on the factors identified in the preceding studies on logistics outsourcing partnership factors and those on logistics outsourcing determinants, a survey was conducted on experts engaged in logistics companies, performing logistics for domestic shippers and analyzed using Smart-PLS. This study presents the following implications. First, in the logistics bidding phase, the shipper should provide its logistics operation information to logistics firms to resolve uncertainties. Details An in-depth explanation of the operation details will be presented via the bidding presentation, and on-site tours of manufacturing plants and logistics centers should also be carried out if necessary. Second, in the bidding phase, logistics companies should appeal through proposals to their competitiveness, such as experience and knowledge of the logistics of the shipper, and also consider alliances with other logistics companies to supplement their insufficient logistics services. Third, logistics companies should make proposals to share profits and risks through logistics outsourcing during the bidding phase, propose accepting risks from environmental uncertainties of the shipper within its capacity to an acceptable extent, and share the benefits of carrying out the shipper's logistics.

• 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.

• The Journal of Information Technology
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• v.8 no.4
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• pp.9-25
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• 2005

The Understanding of The New Paradigm of Logistics Management is very important competitive factors. Especially, Logistics Outsourcing are receiving increased attention as means of becomming competitive in globally challenging environment So, This paper presents a in-depth analysis for New logistics management recently and suggest that third-party logistics and its implications for korea logistics strategy is most effectively new logistics management.

• The Journal of Information Technology
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• v.7 no.4
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• pp.31-45
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• 2004

The Understanding of The New Paradigm of Logistics Management is very important competitive factors. Especially, Logistics Outsourcing are receiving increased attention as means of becomming competitive in globally challenging environment. So, This paper presents a in-depth analysis for New logistics management recently and suggest that third-party logistics and its implications for korea logistics strategy is most effectively new logistics management.

• 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.

• The Journal of Information Technology
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• v.7 no.1
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• pp.87-104
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• 2004

This study is to understand basic knowledge on e-logistics through the analysis of third party logistics(3PL) as well as fourth party logistics(4PL) and to suggest some activation plans of e-logistics of information era to get competition in the field of international logistics. Compared with advanced countries, Korean companies has not activated 3PL logistics as Korean companies are not inclined to open their business information to others and they didn't recognize the importance of logistics. As the business environments are worsening little by little, there has been greater concerns for e-logistics as a way of focusing on the core-business. Most of Korean companies has outsourced simple and limited scope of 3PL and 4PL services with 1st level of logistics outsourcing. To activate e-logistics, Korean government and private enterprises have to pursue the following strategies. First, Korean government should change the present laws preventing the enterprises specialized in 3PL from doing business and should pursue logistics information and standardization. Also the government needs to support 3PL companies. Second, private companies do their best to retain and develope factors of logistics resources professional and to develope the latest technology. 3PL providers have pursue effective logistics strategies and to invest capitals for the information technology.