• Title/Summary/Keyword: Logistics outsourcing success

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Analyzing the impact on logistics outsourcing success for Ugandan food processing firms through third-party logistics service providers' capabilities (제3자 물류 서비스공급자의 역량을 통한 우간다 식품 가공업체의 물류 아웃소싱 성공에 대한 영향 분석)

  • Alioni, Christopher;Park, Byungin
    • Journal of Korea Port Economic Association
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    • v.38 no.4
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    • pp.45-64
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    • 2022
  • Due to the recent and rapid globalization, logistics outsourcing has expanded globally and is seen as a means of creating a robust logistics system. However, many businesses continue to have difficulties with their logistics outsourcing contracts, which compels them to reinstate the logistics function for internal management. This study aims to investigate how organizational capabilities of logistics service providers (LSPs), notably flexibility, integration, innovation, and technological capabilities, impact on the logistics outsourcing success in Ugandan food processing firms. Using a structured questionnaire survey, cross-sectional data collected from 211 food processing firms in Kampala - Uganda were analyzed by partial least squares-structural equation modeling (PLS-SEM) using SmartPLS 3.3.7 software to examine the theorized relationships. The study findings revealed that whereas the technological and innovation capabilities positively and significantly influence logistics outsourcing success, the effects of flexibility and integration capabilities were insignificant. Additionally, the importance-performance map analysis (IPMA) reveals that the technological capability is a priority capability, followed by the innovation capability if logistics outsourcing success is to be achieved. Conversely, flexibility and integration capabilities are of low priority.

An Empirical Study of Logistics Performance and Outsourcing Types of Korean Distributors (유통업체의 정보물류시스템 아웃소싱 유형과 물류성과에 관한 실증연구)

  • Yoo, Chang-Kwon
    • 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.

A Study on Development of u-4PL Based Air Cargo Logistics System (항공물류에 적용한 u-4PL 시스템 개발 연구)

  • Li, Guang-Zhu;Na, Hyeong-Seok;Li, Zhong-Shi;Lee, Doo-Yong;Lee, Chang-Ho
    • Proceedings of the Safety Management and Science Conference
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    • 2008.11a
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    • pp.579-582
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    • 2008
  • The wave of 4PL added to strategic consulting based on new IT techniques, for example RFID, with logistics outsourcing through existing 3PL service is a great issue. It is also worthy of notice that EPCglobal network strengthen the role of 4PL. In conclusion, the 4PL system based on EPCglobal network will result in a good success, so it will raise a prestige of air cargo in Korea to a higher position. This study deals with the new logistics system, air cargo logistics system based on u-4PL system, RFID and EPCglobal network, that will bring many advantages.

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A Study on Development of u-4PL Based Air Cargo Logistics System (항공물류에 적용한 u-4PL 시스템 개발 연구)

  • Li, Guang-Zhu;Na, Hyeong-Seok;Lee, Doo-Yong;Li, Zhong-Shi;Lee, Chang-Ho
    • Journal of the Korea Safety Management & Science
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    • v.10 no.4
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    • pp.181-187
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    • 2008
  • The market of air cargo in Korea grows very quickly and diversifies. It is an essential factor in the process of development of Northeast-Asia as a hub for Air Cargo logistics. But the process of air cargo in Korea is complex as compared with other north-east asia nations and it has many problems and causes inconvenience to owners of freight. We emphasize that 4PL(Fourth party Logistics) is the excellent solution from among many alternatives. The wave of 4PL added to strategic consulting based on new IT techniques, for example RFID, with logistics outsourcing through existing 3PL service is a great issue. It is also worthy of notice that EPCglobal network strengthen the role of 4PL. In conclusion, the 4PL system based on EPCglobal network will result in a good success, so it will raise a prestige of air cargo in Korea to a higher position. This study deals with the new logistics system, air cargo logistics system based on u-4PL system, RFID and EPCglobal network, that will bring many advantages. At the end, we verify the u-4PL air cargo logistics system by simulation tool.

A Study on the Intelligent Quick Response System for Fast Fashion(IQRS-FF) (패스트 패션을 위한 지능형 신속대응시스템(IQRS-FF)에 관한 연구)

  • Park, Hyun-Sung;Park, Kwang-Ho
    • Journal of Intelligence and Information Systems
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    • v.16 no.3
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    • pp.163-179
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    • 2010
  • Recentlythe concept of fast fashion is drawing attention as customer needs are diversified and supply lead time is getting shorter in fashion industry. It is emphasized as one of the critical success factors in the fashion industry how quickly and efficiently to satisfy the customer needs as the competition has intensified. Because the fast fashion is inherently susceptible to trend, it is very important for fashion retailers to make quick decisions regarding items to launch, quantity based on demand prediction, and the time to respond. Also the planning decisions must be executed through the business processes of procurement, production, and logistics in real time. In order to adapt to this trend, the fashion industry urgently needs supports from intelligent quick response(QR) system. However, the traditional functions of QR systems have not been able to completely satisfy such demands of the fast fashion industry. This paper proposes an intelligent quick response system for the fast fashion(IQRS-FF). Presented are models for QR process, QR principles and execution, and QR quantity and timing computation. IQRS-FF models support the decision makers by providing useful information with automated and rule-based algorithms. If the predefined conditions of a rule are satisfied, the actions defined in the rule are automatically taken or informed to the decision makers. In IQRS-FF, QRdecisions are made in two stages: pre-season and in-season. In pre-season, firstly master demand prediction is performed based on the macro level analysis such as local and global economy, fashion trends and competitors. The prediction proceeds to the master production and procurement planning. Checking availability and delivery of materials for production, decision makers must make reservations or request procurements. For the outsourcing materials, they must check the availability and capacity of partners. By the master plans, the performance of the QR during the in-season is greatly enhanced and the decision to select the QR items is made fully considering the availability of materials in warehouse as well as partners' capacity. During in-season, the decision makers must find the right time to QR as the actual sales occur in stores. Then they are to decide items to QRbased not only on the qualitative criteria such as opinions from sales persons but also on the quantitative criteria such as sales volume, the recent sales trend, inventory level, the remaining period, the forecast for the remaining period, and competitors' performance. To calculate QR quantity in IQRS-FF, two calculation methods are designed: QR Index based calculation and attribute similarity based calculation using demographic cluster. In the early period of a new season, the attribute similarity based QR amount calculation is better used because there are not enough historical sales data. By analyzing sales trends of the categories or items that have similar attributes, QR quantity can be computed. On the other hand, in case of having enough information to analyze the sales trends or forecasting, the QR Index based calculation method can be used. Having defined the models for decision making for QR, we design KPIs(Key Performance Indicators) to test the reliability of the models in critical decision makings: the difference of sales volumebetween QR items and non-QR items; the accuracy rate of QR the lead-time spent on QR decision-making. To verify the effectiveness and practicality of the proposed models, a case study has been performed for a representative fashion company which recently developed and launched the IQRS-FF. The case study shows that the average sales rateof QR items increased by 15%, the differences in sales rate between QR items and non-QR items increased by 10%, the QR accuracy was 70%, the lead time for QR dramatically decreased from 120 hours to 8 hours.