Logistics Outsourcing Process in Pakson International : Master Thesis in Business Economics

Abstract: In the contemporary business world, manufacturing concern companies are becoming moreefficient in production process. Outsourcing is a process in which companies or producers getthe service or produced product or portion of the finished product from other company.Logistics is a functional system which is important for the improvment of efficiency, both inthe flow of goods and information and to meet low-cost, reliable delivery, and fast objectiveswithin a company and throughout a network of companies. The outsourcing of logisticsactivities to Logistics Services Providers or Third Party Logistics (3PL) companies hasbecome a common practice in current business world. Logistics outsourcing is the use ofexternal companies to perform logistics functions that have traditionally been performedwithin an organisation and the functions performed by the third party can encompass theentire logistics process or selected activities within that process. This thesis or research hasbeen conducted on a manufacturing sector‟s company which is located and working inPakistan. This company is working with the name of Pakson International. Company has outsourced three logistics activities which are freight forwarding, transportation andwarehouse management. In this thesis, there is focus on the comparison of the logisticsoutsourcing process inside the Pakson International and in literature.