Decreasing network complexity with logistics outsourcing: an entropic approach
by Anna Azzi, Daria Battini, Alessandro Persona, Fabio Sgarbossa
International Journal of Procurement Management (IJPM), Vol. 3, No. 4, 2010

Abstract: Over the years, third-party logistics (3PL) has been adopted by companies with the objective of helping organisations with their value chain activities and hence to be competitive, flexible and responsiveness to dynamic market requirements. According to literature and practice, what is produced in outsourcing logistics has effects not only for the parties directly involved but also for other relationships and organisations of the overall network in which the relationship is embedded. Up to now, 3PL outcomes perceived by the parties directly involved (shipper, manufacturer and logistics service provider) are often addressed in literature, while the 'external outcomes' experienced at the supply chain level need further analysis. This work investigates the implications of the outsourcing of logistics activities on the supply network structure by using a set of entropic measures useful to study the quantity of information required in a network. The intention of this work is to show that a transition from a self managed structure to third-party logistics arrangement brings with it, if correctly managed, a decrease in information needs and consequently a reduction in supply network complexity level.

Online publication date: Thu, 30-Sep-2010

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Procurement Management (IJPM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com