Logistics outsourcing - 3PL & 4PL : A Survey on Pakistani manufacturing and exporting companies

Abstract:

Background:                 The development of recent means of transportation, information has increased opportunities for global business and it is very common that the companies involved in global business often need to outsource logistic function, as they cannot perform global logistics on their own. The need of service effectiveness for companies and operations efficiency from logistics service providers involves the minimization of the uncertainties associated with logistics outsourcing, therefore risks reduction measures must be implemented using logistics outsourcing.

Research questions:     ­-    How do the Pakistani manufacturing and exporting companies currently outsource their logistics function in their downstream supply chain?

-           What benefits they seek with respect to 3PL and 4PL?

-           What factors they consider for outsourcing logistics?

Purpose:                       To investigate the current logistics outsourcing situation of the Pakistani Manufacturing and Exporting Companies. What logistics functions they outsource, and the focus of the study is downstream supply chain. To study application of logistics outsourcing concepts i.e. 3PL and 4PL, services provided by these providers, and what benefits companies seek. What factors are important for them for logistics outsourcing and what fectors they consider for logistics outsourcing, what factors among these are important for them, who make the decision for logistics outsourcing?

Method:                        The empirical data and the conclusions made from it are based on quantitative facts and figures collected through an e-survey. Results are drawn from responses of manufacturing companies that all outsource logistics. This thesis is written from a positivistic perspective with a deductive approach.

Conclusions:                 The current logistics outsourcing situation in Pakistan is found to be uneven companies majorly concerned in textile manufacturing and are not in knowledge of the newer logistics outsourcing 4PL. Downstream supply chain is followed by cross-docking shipments. Cost factor is not that much important for companies but the timely delivery is more important.