Logistic Outsourcing
Impact of Outsourcing Logistics Levels on Logistics Service Performance
Mr. Zaryab Sheikh (Corresponding Author) Email: justzaryab@gmail.com Ms. Shafaq Rana Email: shafaq_rana@hotmail.com Mr. Samiullah Email: sami.mgt@gmail.com Ms. Sadia Umar Email: sadiaumar@ciitlahore.edu.pk Address: Department of Management Sciences, COMSATS Institute of Information Technology, Lahore, Pakistan
ABSTRACT The contemporary dynamic business environment is characterized by the short life span of the products due to high frequency of introducing new products in market. It has become a daunting challenge for the companies to introduce differentiated products to meet the customer demands using supply chain management as its objective is to share resources, line up goals and join up forces across company borders. Outsourcing of different levels of logistics plays vital role to make the logistics operations more efficient and has greater impact on performance of logistics service. The analytical portion of this article was done with the help of various theories of outsourcing, levels of logistics activities, impact of logistics service performance. Key words: outsourcing, levels of logistics activities, impact of logistics outsourcing, logistics service performance. 1. INTRODUCTION The study is based on the concepts related to the outsourcing and levels of logistic activities in the logistics service performance. In the current dynamic era which is described by market volatility, cycle times, constant change, and demand to reduce costs and attached with the globalization trend has drive the rising need to outsource the business operations (D’Aveni, Canger, and Doyle, 1995). The return on assets of user’s firm can be improved by outsourcing. Returns can be improved significantly through outsourcing by decreasing the not- insignificant investments in material handling, order picking, warehouse facilities, and information technology and transportation equipment. According to Stuckey and
Mr. Zaryab Sheikh (Corresponding Author) Email: justzaryab@gmail.com Ms. Shafaq Rana Email: shafaq_rana@hotmail.com Mr. Samiullah Email: sami.mgt@gmail.com Ms. Sadia Umar Email: sadiaumar@ciitlahore.edu.pk Address: Department of Management Sciences, COMSATS Institute of Information Technology, Lahore, Pakistan
ABSTRACT The contemporary dynamic business environment is characterized by the short life span of the products due to high frequency of introducing new products in market. It has become a daunting challenge for the companies to introduce differentiated products to meet the customer demands using supply chain management as its objective is to share resources, line up goals and join up forces across company borders. Outsourcing of different levels of logistics plays vital role to make the logistics operations more efficient and has greater impact on performance of logistics service. The analytical portion of this article was done with the help of various theories of outsourcing, levels of logistics activities, impact of logistics service performance. Key words: outsourcing, levels of logistics activities, impact of logistics outsourcing, logistics service performance. 1. INTRODUCTION The study is based on the concepts related to the outsourcing and levels of logistic activities in the logistics service performance. In the current dynamic era which is described by market volatility, cycle times, constant change, and demand to reduce costs and attached with the globalization trend has drive the rising need to outsource the business operations (D’Aveni, Canger, and Doyle, 1995). The return on assets of user’s firm can be improved by outsourcing. Returns can be improved significantly through outsourcing by decreasing the not- insignificant investments in material handling, order picking, warehouse facilities, and information technology and transportation equipment. According to Stuckey and
References: 25. Stucky, J., White, D., (1993). “When and when not to vertically integrate”, Journal: Sloan Management, Volume: 34, No. 3, Pages: 71-84 6