• Title/Summary/Keyword: outsourcing logistics

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Conflict Management Strategy for Successful Logistics Outsourcing (성공적인 물류 아웃소싱을 위한 갈등관리 전략)

  • Hur, Won-Moo;Lee, Seung-Chang;Seo, Eung-Kyo;Shin, In-Yong;Lee, Wan-Soo
    • Journal of Distribution Research
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    • v.11 no.1
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    • pp.41-68
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    • 2006
  • Today, Manufacturing companies execute the logistics outsourcing that commits the non-core logistic function to the specialized logistics corporation, which makes the manufacturing company focus on its core competence, product development and marketing, reduces logistics cost and improves customer service level. Recently, Logistics outsourcing is developed into cooperative sourcing based on the partnership. Case study on the logistics outsourcing will provide the good guideline for planning of the outsourcing strategy. The objective of this research is making a sense about 4PL through the case of UPS-Samsung Electro-Mechanics and catching major issue to provide the guideline for the cooperation outsourcing strategy. We investigated historical backgrounds of the logistics outsourcing between UPS and Samsung Electro-Mechanics. We also investigated problems occurred in outsourcing process at the five dimensions-organizational problem, CEO's short-term views, cultural gap between two companies, integration of IT system, and different understanding about outcomes. We expect to give many implications to manufacturing companies which want to cooperate with specialized logistics corporation.

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A Survey on the Outsourcing Usage of Logistics Service Users in China -Focused on Area of Shanghai- (중국 물류서비스 이용자들의 아웃소싱 관행에 관한 조사연구)

  • Fu, Qin-Qin;Bae, Jung-Han;Kim, Gwi-Ok
    • Journal of Korea Port Economic Association
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    • v.25 no.1
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    • pp.249-270
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    • 2009
  • This paper analyses the results of the survey questionnaires which are made for logistics services users in Shanghai, China. Based an 158 valid users' responses, the study results show that the typical outsourcing logistics users prefer to set up long term relationship with providers and buy services from multiple providers. Most users are satisfied with their providers and believe that outsourcing logistics services has led to positive impact on their customer satisfaction, logistics service levels and revenue improvement. Price levers, core competences, reputation are critical in the selection of an outsourcing logistics provider for users in this study. This study indicates that the market for 3PL services in China has a reasonable potential fur further development, though 3PL practices are still at a nascent stage in China. This paper presents full details and implications of the results of th£ survey and then provides some helpful suggestion for th£ development of Chinese logistics industry and Chinese logistics companies.

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A Study on the Advanced Foreign′s Third Parth Logistics Trend & View at Global Logistics Times (글러벌 물류시대 선진외국의 제3자 물류동향과 전망)

  • 박영태
    • Proceedings of the Korean DIstribution Association Conference
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    • 2001.11b
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    • pp.91-122
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    • 2001
  • This paper's object is to study the Advanced Foreign's Third Party Logistics Trend & View at Global Logistics Times. So, I analysed the Advanced Foreign U.S. & EU and the results are as follows: First, a growth in the number of outsourcing relationships has contributed to the development of more flexible organizations, based on core competencies and mutually beneficial longer-term relationships. So, the development of logistics relationships has brought mixed results. Across many industries, logistics outsourcing is a rapidly expanding source of cost savings, competitive advantage, and customer service improvements. Thus, it appears that Third Party Logistics(TPL) concepts could be useful in meeting the goals of the 1ogistics function. Second, the field of logistics and supply chain management is becoming strategically important. At the same time, it is becoming increasingly complex because of the rapid advances in management methods, e-commerce, technology, and enabling information systems. However, Third Party Logistics provider, many a times, lack broad set of skills, integrating technologies, strategies and global reach. So, Fourth Party Logistics(4PL) is the next significant evolution in supply chain outsourcing. 4PL delivers a comprehensive supply chain solution, and delivers value through the ability to impact the entire supply chain. The 4PL industry is likely to grow as more companies use e-commerce at Global Logistics Times.

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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.

A Strategic Plan for the Effective Utilization of the Third Party Logistics (기업경쟁력(企業競爭力) 강화(强化)를 위한 제(第)3자물류(者物流)의 추진전략(推進戰略))

  • Lee, Young-Soo
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.13
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    • pp.389-409
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    • 2000
  • Recent demands of market forces are causing considerable attention to be forced on logistics functions and revitalizing interest in outsourcing them. The need to efficiently and economically adjust support to meet market demands is growing significantly. Logistics is playing a role it has never played before. In light of this, outsourcing to third parties has become a strategic issue demanding greater attention in corporate boardrooms. From the perspective of TPL users, this paper focuses on how best to make a strategic plan for the effective utilization of TPL. And the results are as follows : First, after deciding their logistics outsourcing, the companies have to set up the aim of TPL through development of logistical strategies. Second, the companies must decide service provider that fits to their business environment and conditions. Third, they have to conclude a contract with logistics service provider. Fourth, after doing the preparatory implementation they carry into effect the original implementation. Fifth, they use the result of original implementation to fix a partnership.

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A Study on the Effect of the Bidding Stage Factors of Logistics Outsourcing Service on Trust, Cooperation and Service Satisfaction (물류아웃소싱 서비스의 입찰단계 요인이 신뢰, 협력 및 서비스 만족도에 미치는 영향에 관한 연구)

  • Lee, Nam-Seung;Song, Sang-Hwa
    • 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.

The Strategy for Global Competitiveness of the Outsourcing Logistics in the Information-Contents Business (정보콘텐츠 기업의 아웃소싱물류 국제 경쟁력전략)

  • Yun, Hui-Suk
    • Journal of Korea Port Economic Association
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    • v.24 no.2
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    • pp.241-263
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    • 2008
  • Since the outsourcing logistics business has been an emerging opportunities for many new service providers entering into such an ever-changing technology, knowledge and logistics market, it has resulted into a price-sensitive and high competition industry. In order to sharpen the global competitive power of the information-contents business in this severe environment, this research is engaged in meeting the following purposes: 1. well position the outsourcing logistics services in the logistics business industry 2. articulate the business model to compete in the outsourcing logistics services market, Information-contents industry. 3. propose a competitive strategy for a outsourcing logistics services provider to grow the information-contents business. This research report could also serve as a framework for the other logistics and the outsourcing services companies to plan out their competitive strategies of information-contents industry. For new comers to join the same market, it will be also helpful in positioning their services and making business decisions in a holistic view.

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A Study on the Critical Factors of Logistics Service Contracts (물류서비스 계약의 결정요인에 관한 연구)

  • Jung, Kyung-Seon;Kim, Tae-Bok
    • 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.

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Come fly with ME: The Impact of 3PLs within the aircraft Manufacturing, Repair and Overhaul Industry in the United Arab Emirates

  • Hassan, Fatima;Annabi, Carrie Amani
    • The Journal of Industrial Distribution & Business
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    • v.10 no.4
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    • pp.13-24
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    • 2019
  • Purpose - This research explores the impacts of third-party logistics (3PLs) within the aircraft Maintenance, Repair and Overhaul (MRO) industry in the United Arab Emirates (UAE) to explore the role of collaborative relationships for improving outsourcing. Globalization and time based competition have changed business environments and challenged the conventional management strategies that are related to core competencies and operational models. Organizations are forced to devise innovative practices in which logistics outsourcing to 3PLs offers significant advantages. Research design, data, and methodology - This case study was conducted within a leading global aircraft MRO organization whose reach spans across Europe, the Middle East, Asia and the Americas. The methods used face to face semi-structured interviews, validated through further focus group discussions. Results - These findings highlight the effectiveness of collaborative relationships on their role to improve outsourcing and also demonstrated that MROs gain several advantages from 3PL arrangements. However, any gaps in outsourcing management elevates potential risks to organizations as well, which could result in reputational, operational and financial losses. Conclusions - Although generalizability is not possible due to the case study approach, generality suggests that in order to reduce reputational, operational and financial risks, enhanced collaboration with 3PLs is recommended to optimize outsourcing arrangements.

Promotional Plans of Fourth-Party Logistics in Korea: Applicability in Entering the Chinese Logistics Market

  • Oh, Moon-Kap
    • Journal of Distribution Science
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    • v.13 no.2
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    • pp.25-33
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    • 2015
  • Purpose - This study aims to disclose the problems of both the government and the logistics industry regarding fourth-party logistics, and to provide various solutions at the level of enterprises as well as the government for the introduction of fourth-party logistics in China. Research design, data, and methodology - This study aims to reveal how a shipping company recognizes the creation of partnerships with fourth-party logistics providers, and it reveals several related implications. Results - Fourth-party logistics organizations can be used to achieve maximum business performance as professional logistics companies by incorporating the benefits of outsourcing and insourcing. Outsourcing logistics services through focusing on core competencies and improving customer service can have financial effects and advantages such as the simplification of labor issues. Conclusions - This study did not investigate Korean enterprises through an empirical analysis and provided fourth-party logistics concepts and promotional plans according to domestic and foreign literature. Further studies shall investigate not only the Korean fourth-party logistics model but also the training of logistics professionals to generate profits for both shippers as well as logistics enterprises.