Outsourcing of logistics services by SMEs in India Online publication date: Thu, 06-May-2021
by Ranjana Jadaun; Vineet Prabha; Omdeep Gupta
International Journal of Logistics Economics and Globalisation (IJLEG), Vol. 8, No. 4, 2020
Abstract: Outsourcing of logistics services to logistics service providers (3PL) is a common practice in business world. The key criteria for choosing 3PL are user compatibility, cost of services, service quality, organisation's reputation, long-term relationships, financial performance, market share, geographical distribution, range of services, flexibility of operations and delivery. This research focuses on SMEs (manufacturers and exporters) from different industrial sectors in the NCR region. The purpose is to investigate the present extent of using the 3PL services by SMEs, to understand the reason for outsourcing the logistics services and also to study the impact of using 3PL services. Results indicate a lack of understanding about logistics outsourcing in SMEs and also they are not fully aware of other logistics functions which can be outsourced to gain strategic advantage and cost reduction. The study demonstrates that logistics outsourcing is a strong mechanism that can be harnessed to empower the SMEs.
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