Potential Challanges in Logistics Outsourcing and their Impact on Supply Chain Performance
Abstract
Logistic outsourcing is one of the common practices of the Supply Chain Management (SCM) and has proven to be effective for building competitive advantages in organizations. The academic literature has contributed to the effectiveness of logistic outsourcing in supply chain management. However, few studies have addressed the potential challenges faced in effective implementation of the relationship. Therefore the current study addressed the challenges involved in logistic outsourcing and investigated the extent to which these challenges effect supply chain performance. The results reveal that challenges of warehousing, outsourcing inefficiency and accountability significantly affect supply chain performance of food industries in Karachi. However, loss of control and security and track and trace gaps doesn’t have a significant effect on supply chain performance which indicates that industries should have a special focus on the challenges of warehousing, efficiency of outsourcing and accountability in logistic outsourcing.
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References
Bryson, J. R., Sundbo, J., Fuglsang, L., & Daniels, P. (2020). Supply Chains and Logistics Services. In Service Management (pp. 203-221). Palgrave Macmillan, Cham.
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