Identifying the Objectives of Outsourcing Logistics Services as a Basis for Measuring Its Financial and Operational Performance
Logistics outsourcing is a growing trend and measuring its performance, a challenge. It must be consistent with the objectives set for logistics outsourcing, but we have found no objective-based performance measurement system. We have conducted a comprehensive review of the specialist literature to cover this gap, which has led us to identify and define these objectives. The outcome is that we have obtained a list of the most relevant objectives and their descriptions. This will enable us to analyse in a future study whether the indicators used for measuring logistics outsourcing performance are consistent with the objectives pursued with the outsourcing. If this is not the case, a proposal will be made for a set of financial and operational indicators to measure performance in logistics outsourcing that take the goals being pursued into account.
[1] Fawcett, S. E. and Cooper, M. B. (1998). "Logistics performance
measurement and customer success". Industrial Marketing Management,
No. 27, Vol. 4, pp. 341-357.
[2] Chan, F.T.S. (2003), "Performance measurement in a supply chain",
International Journal of Advanced Manufacturing Technology, Vol. 21
No. 7, pp. 534-48.
[3] Neely, A. (2005). "The evolution of performance measurement research:
Developments in the last decade and a research agenda for the next".
International Journal of Operations & Production Management, No. 25,
Vol. 12, pp. 1264-1277.
[4] Song, Y.-Y., Maher, T., Nicholson, J.D. and Gurney, N.P., (2000)
"Strategic alliances in logistics outsourcing". Asia Pacific Journal of
Logistics and Marketing, No. 12, Vol. 4, pp. 3-21.
[5] Sum, C-C., Teo C-B. and Kwan-Kee, N. (2001). "Strategic logistics
management in Singapore". International Journal of Operations &
Production Management, No. 21, Vol. 9, pp. 1239-1260.
[6] Sahay, B.S. and Mohan, R. (2006). "3PL practices: An Indian
perspective". International Journal of Physical Distribution & Logistics
Management, No. 36 Vol. 9, pp. 666-689.
[7] Forslund, H. (2011). "The size of a logistics performance measurement
system". Facilities, No. 29, Vol 3, pp. 133-148.
[8] Jiang, B. and Qureshi, A. (2006). "Research on outsourcing results:
Current literature and future opportunities". Management Decision, No.
44, Vol. 1, pp. 44-55.
[9] Shepherd, C. and G├╝nter, H. (2006). "Measuring supply chain
performance: Current research and future directions". International
Journal of Productivity and Performance Management, No. 55, Vol. 3,
pp. 242-258.
[10] Forslund, H. and Jonsson, P. (2007). "Dyadic integration of the
performance management process". International Journal of Physical
Distribution & Logistics Management, No. 37, Vol. 7, pp. 546-567.
[11] Forslund, H. and Jonsson, P. (2009). "Obstacles to supply chain
integration of the performance management process in buyer-supplier
dyads". International Journal of Operations & Production Management,
No. 29, Vol. 1, pp. 77-95
[12] Heide, J.B. and John, G. (1992), "Do norms matter in marketing
relationships?", Journal of Marketing, Vol. 56 No. 1, pp. 32-44.
[13] Engelbrecht, C. (2004). "Logistikoptimierung durch Outsourcing.
Erfolgswirkung und Erfolgsfaktoren", Wiesbaden: Deutscher
Universitat Verlag.
[14] Deepen, J. (2007). "Logistics Outsourcing Relationships: Measurement,
Antecedents and Effects of Logistics Outsourcing Performance",
Heidelberg: Physica-Verlag.
[15] Krakovics, F., Leal, J. E., Mendes, P. and Santos, R. L. (2008).
"Defining and calibrating performance indicators of a 4PL in the
chemical industry in Brazil". International Journal of Production
Economics, No. 115, Vol. 2, pp. 502-518.
[16] Beamon, B.M. (1999). "Measuring supply chain performance".
International Journal of Operations & Production Management, No. 19,
Vol. 3, pp. 275-292.
[17] Fernie, J. (1999)." Outsourcing distribution in U.K. retailing". Journal of
Business Logistics, No. 20, Vol. 2, pp. 83-95.
[18] Bhatnagar, R., Sohal, A.S. and Millen, R. (1999). "Third party logistics
services: a Singapore perspective", International Journal of Physical
Distribution & Logistics Management, Vol. 29 No. 9, pp. 569-87.
[19] Razzaque, M.A. and Sheng, C.C. (1998). "Outsourcing of logistics
functions: a literature survey", International Journal of Physical
Distribution & Logistics Management, Vol. 28 No. 2, pp. 89-107.
[20] Jesson, J. K., Matheson, L. and Lacey, F. M. (2011). "Doing your
literature review", SAGE Publications Ltd.
[21] Machuca, J. A. D., González-Zamora, M. d. M., and Aguilar-Escobar,
V. G. (2007). "Service operations management research". Journal of
Operations Management, No. 25, Vol 3, pp. 585-603
[22] Maloni, M. J. and Carter, C. R. (2006). "Opportunities for research in
third-party logistics". Transportation Journal, No. 45, Vol. 2, pp. 23-38.
[23] N├║├▒ez-Carballosa, A. and Guitart-Tarrés, L. (2011). "Third-party
logistics providers in Spain", Industrial Management & Data Systems,
No. 111, Vol. 8, pp. 1156-1172
[24] Hsiao, H.I. (2010). "Developing a decision-making framework for levels
of logistics outsourcing in food supply chain networks". International
Journal of Physical Distribution & Logistics Management, No. 40, Vol.
5, pp. 395-414.
[25] Wilding, R. and Juriado, R. (2004). "Customer perceptions on logistics
outsourcing in the European consumer goods industry". International
Journal of Physical Distribution & Logistics Management, No. 34, Vol.
7, pp. 628-644.
[26] Sohail, M.S. and Sohal, A.S. (2003). "The use of third party logistics
services: A Malaysian perspective". Technovation, No. 23, Vol. 5, pp.
401-408.
[27] Van Laarhoven, P., Berglund, M. and Peters, M. (2000). "Third-party
logistics in Europe - five years later". International Journal of Physical
Distribution & Logistics Management, No. 30, Vol. 5, pp. 425-442.
[28] Boyson, S., Corsi, T., Dresner, M. and Rabinovich, E. (1999).
"Managing effective third party logistics relationships: What does it
take?", Journal of Business Logistic; Vol. 20, No. 1, pp 73-100.
[29] Sink, H. L. and Langley, C. J. (1997). "A managerial framework for the
acquisition of third-party logistics services". Journal of Business
Logistics, No. 18, Vol. 2, pp. 163-189.
[30] Kechris, AS (1995). "Classical descriptive set theory". Springer, New
York
[31] Stalk, G. (1998). "Time-the next source of competitive advantage".
Harvard Business Review, July-August, pp. 41-51.
[32] Williamson, O.E. (1975). "Markets and Hierarchies: Analysis and
Antitrust Implications". Free Press, NewYork.
[33] Williamson, O.E. (1985). "The Economic Institutions of Capitalism".
FreePress, New York.
[34] Casale, F. (2004). "The sixth annual outsourcing index: buyers ready to
spend". Outsourcing Essentials Vol. 1, No. 4.
[35] Holmstrom, J.B. and Aavikko, P. (1994). ÔÇÿÔÇÿAchieving a management
breakthrough in inbound logistics by improving the efficacy of
operational decisions--, Production and Inventory Management Journal,
Vol. 35 No. 3, pp. 1-8.
[36] Lau, K. H. and Zhang, J. (2006). "Drivers and obstacles of outsourcing
practices in china". International Journal of Physical Distribution &
Logistics Management, No. 36, Vol. 10, pp. 776-792.
[37] Barney, J. (1991). "Firm resources and sustained competitive
advantage". Journal of Management, No. 17, Vol. 1, pp. 99-120
[38] Brown, D. and Wilson, S. (2005). "The Black Book of Outsourcing -
How to Manage the Changes, Challenges, and Opportunities", Wiley,
Hoboken.
[39] Kroes, J. R. and Ghosh, S. (2010). "Outsourcing congruence with
competitive priorities: Impact on supply chain and firm performance".
Journal of Operations Management, No. 28, Vol. 2, pp. 124.
[40] Eisenhardt, K.M. (1989). "Agency theory: an assessment and review".
Academy of Management Review, No. 14, Vol. 1, pp. 57-74.
[41] Ghodeswar, B. and Vaidyanathan, J. (2008). "Business process
outsourcing: An approach to gain access to world-class capabilities".
Business Process Management Journal, No. 14, Vol. 1, pp. 23-38.
[42] Lai, F., Li, D., Wang, Q. and Zhao, X. (2008). "The information
technology capability of third-party logistics providers: A resourcebased
view and empirical evidence from China". Journal of Supply
Chain Management, No. 44, Vol. 3, pp. 22-38.
[43] Stewart, G. (1995). "Supply chain performance benchmarking study
reveals keys to supply chain excellence", Logistics Information
Management, Vol. 8 No. 2, pp. 38 - 44.
[44] Sloper, A. (2004). "Meeting the challenge of outsourcing", Engineering
Management Journal, Vol. 14 No. 3, pp. 34-7.
[45] Lee, H. (2004). "Simple theories for complex logistics", Optimize, p. 42.
[46] Richardson, H.L. (1995). "Logistics help for the challenged",
Transportation & Distribution, January, pp. 60-64.
[47] Pyke, D.F. and Cohen, M.A. (1994). "Multi-product integrated
production-distribution systems", European Journal of Operational
Research, Vol. 74 No. 1, pp. 18-49.
[1] Fawcett, S. E. and Cooper, M. B. (1998). "Logistics performance
measurement and customer success". Industrial Marketing Management,
No. 27, Vol. 4, pp. 341-357.
[2] Chan, F.T.S. (2003), "Performance measurement in a supply chain",
International Journal of Advanced Manufacturing Technology, Vol. 21
No. 7, pp. 534-48.
[3] Neely, A. (2005). "The evolution of performance measurement research:
Developments in the last decade and a research agenda for the next".
International Journal of Operations & Production Management, No. 25,
Vol. 12, pp. 1264-1277.
[4] Song, Y.-Y., Maher, T., Nicholson, J.D. and Gurney, N.P., (2000)
"Strategic alliances in logistics outsourcing". Asia Pacific Journal of
Logistics and Marketing, No. 12, Vol. 4, pp. 3-21.
[5] Sum, C-C., Teo C-B. and Kwan-Kee, N. (2001). "Strategic logistics
management in Singapore". International Journal of Operations &
Production Management, No. 21, Vol. 9, pp. 1239-1260.
[6] Sahay, B.S. and Mohan, R. (2006). "3PL practices: An Indian
perspective". International Journal of Physical Distribution & Logistics
Management, No. 36 Vol. 9, pp. 666-689.
[7] Forslund, H. (2011). "The size of a logistics performance measurement
system". Facilities, No. 29, Vol 3, pp. 133-148.
[8] Jiang, B. and Qureshi, A. (2006). "Research on outsourcing results:
Current literature and future opportunities". Management Decision, No.
44, Vol. 1, pp. 44-55.
[9] Shepherd, C. and G├╝nter, H. (2006). "Measuring supply chain
performance: Current research and future directions". International
Journal of Productivity and Performance Management, No. 55, Vol. 3,
pp. 242-258.
[10] Forslund, H. and Jonsson, P. (2007). "Dyadic integration of the
performance management process". International Journal of Physical
Distribution & Logistics Management, No. 37, Vol. 7, pp. 546-567.
[11] Forslund, H. and Jonsson, P. (2009). "Obstacles to supply chain
integration of the performance management process in buyer-supplier
dyads". International Journal of Operations & Production Management,
No. 29, Vol. 1, pp. 77-95
[12] Heide, J.B. and John, G. (1992), "Do norms matter in marketing
relationships?", Journal of Marketing, Vol. 56 No. 1, pp. 32-44.
[13] Engelbrecht, C. (2004). "Logistikoptimierung durch Outsourcing.
Erfolgswirkung und Erfolgsfaktoren", Wiesbaden: Deutscher
Universitat Verlag.
[14] Deepen, J. (2007). "Logistics Outsourcing Relationships: Measurement,
Antecedents and Effects of Logistics Outsourcing Performance",
Heidelberg: Physica-Verlag.
[15] Krakovics, F., Leal, J. E., Mendes, P. and Santos, R. L. (2008).
"Defining and calibrating performance indicators of a 4PL in the
chemical industry in Brazil". International Journal of Production
Economics, No. 115, Vol. 2, pp. 502-518.
[16] Beamon, B.M. (1999). "Measuring supply chain performance".
International Journal of Operations & Production Management, No. 19,
Vol. 3, pp. 275-292.
[17] Fernie, J. (1999)." Outsourcing distribution in U.K. retailing". Journal of
Business Logistics, No. 20, Vol. 2, pp. 83-95.
[18] Bhatnagar, R., Sohal, A.S. and Millen, R. (1999). "Third party logistics
services: a Singapore perspective", International Journal of Physical
Distribution & Logistics Management, Vol. 29 No. 9, pp. 569-87.
[19] Razzaque, M.A. and Sheng, C.C. (1998). "Outsourcing of logistics
functions: a literature survey", International Journal of Physical
Distribution & Logistics Management, Vol. 28 No. 2, pp. 89-107.
[20] Jesson, J. K., Matheson, L. and Lacey, F. M. (2011). "Doing your
literature review", SAGE Publications Ltd.
[21] Machuca, J. A. D., González-Zamora, M. d. M., and Aguilar-Escobar,
V. G. (2007). "Service operations management research". Journal of
Operations Management, No. 25, Vol 3, pp. 585-603
[22] Maloni, M. J. and Carter, C. R. (2006). "Opportunities for research in
third-party logistics". Transportation Journal, No. 45, Vol. 2, pp. 23-38.
[23] N├║├▒ez-Carballosa, A. and Guitart-Tarrés, L. (2011). "Third-party
logistics providers in Spain", Industrial Management & Data Systems,
No. 111, Vol. 8, pp. 1156-1172
[24] Hsiao, H.I. (2010). "Developing a decision-making framework for levels
of logistics outsourcing in food supply chain networks". International
Journal of Physical Distribution & Logistics Management, No. 40, Vol.
5, pp. 395-414.
[25] Wilding, R. and Juriado, R. (2004). "Customer perceptions on logistics
outsourcing in the European consumer goods industry". International
Journal of Physical Distribution & Logistics Management, No. 34, Vol.
7, pp. 628-644.
[26] Sohail, M.S. and Sohal, A.S. (2003). "The use of third party logistics
services: A Malaysian perspective". Technovation, No. 23, Vol. 5, pp.
401-408.
[27] Van Laarhoven, P., Berglund, M. and Peters, M. (2000). "Third-party
logistics in Europe - five years later". International Journal of Physical
Distribution & Logistics Management, No. 30, Vol. 5, pp. 425-442.
[28] Boyson, S., Corsi, T., Dresner, M. and Rabinovich, E. (1999).
"Managing effective third party logistics relationships: What does it
take?", Journal of Business Logistic; Vol. 20, No. 1, pp 73-100.
[29] Sink, H. L. and Langley, C. J. (1997). "A managerial framework for the
acquisition of third-party logistics services". Journal of Business
Logistics, No. 18, Vol. 2, pp. 163-189.
[30] Kechris, AS (1995). "Classical descriptive set theory". Springer, New
York
[31] Stalk, G. (1998). "Time-the next source of competitive advantage".
Harvard Business Review, July-August, pp. 41-51.
[32] Williamson, O.E. (1975). "Markets and Hierarchies: Analysis and
Antitrust Implications". Free Press, NewYork.
[33] Williamson, O.E. (1985). "The Economic Institutions of Capitalism".
FreePress, New York.
[34] Casale, F. (2004). "The sixth annual outsourcing index: buyers ready to
spend". Outsourcing Essentials Vol. 1, No. 4.
[35] Holmstrom, J.B. and Aavikko, P. (1994). ÔÇÿÔÇÿAchieving a management
breakthrough in inbound logistics by improving the efficacy of
operational decisions--, Production and Inventory Management Journal,
Vol. 35 No. 3, pp. 1-8.
[36] Lau, K. H. and Zhang, J. (2006). "Drivers and obstacles of outsourcing
practices in china". International Journal of Physical Distribution &
Logistics Management, No. 36, Vol. 10, pp. 776-792.
[37] Barney, J. (1991). "Firm resources and sustained competitive
advantage". Journal of Management, No. 17, Vol. 1, pp. 99-120
[38] Brown, D. and Wilson, S. (2005). "The Black Book of Outsourcing -
How to Manage the Changes, Challenges, and Opportunities", Wiley,
Hoboken.
[39] Kroes, J. R. and Ghosh, S. (2010). "Outsourcing congruence with
competitive priorities: Impact on supply chain and firm performance".
Journal of Operations Management, No. 28, Vol. 2, pp. 124.
[40] Eisenhardt, K.M. (1989). "Agency theory: an assessment and review".
Academy of Management Review, No. 14, Vol. 1, pp. 57-74.
[41] Ghodeswar, B. and Vaidyanathan, J. (2008). "Business process
outsourcing: An approach to gain access to world-class capabilities".
Business Process Management Journal, No. 14, Vol. 1, pp. 23-38.
[42] Lai, F., Li, D., Wang, Q. and Zhao, X. (2008). "The information
technology capability of third-party logistics providers: A resourcebased
view and empirical evidence from China". Journal of Supply
Chain Management, No. 44, Vol. 3, pp. 22-38.
[43] Stewart, G. (1995). "Supply chain performance benchmarking study
reveals keys to supply chain excellence", Logistics Information
Management, Vol. 8 No. 2, pp. 38 - 44.
[44] Sloper, A. (2004). "Meeting the challenge of outsourcing", Engineering
Management Journal, Vol. 14 No. 3, pp. 34-7.
[45] Lee, H. (2004). "Simple theories for complex logistics", Optimize, p. 42.
[46] Richardson, H.L. (1995). "Logistics help for the challenged",
Transportation & Distribution, January, pp. 60-64.
[47] Pyke, D.F. and Cohen, M.A. (1994). "Multi-product integrated
production-distribution systems", European Journal of Operational
Research, Vol. 74 No. 1, pp. 18-49.
@article{"International Journal of Business, Human and Social Sciences:56389", author = "Carlos Sanchís-Pedregosa and María del Mar González-Zamora and José A. D. Machuca", title = "Identifying the Objectives of Outsourcing Logistics Services as a Basis for Measuring Its Financial and Operational Performance", abstract = "Logistics outsourcing is a growing trend and measuring its performance, a challenge. It must be consistent with the objectives set for logistics outsourcing, but we have found no objective-based performance measurement system. We have conducted a comprehensive review of the specialist literature to cover this gap, which has led us to identify and define these objectives. The outcome is that we have obtained a list of the most relevant objectives and their descriptions. This will enable us to analyse in a future study whether the indicators used for measuring logistics outsourcing performance are consistent with the objectives pursued with the outsourcing. If this is not the case, a proposal will be made for a set of financial and operational indicators to measure performance in logistics outsourcing that take the goals being pursued into account.
", keywords = "Outsourcing, Performance measurement, Logistics,
Objectives, Indicators", volume = "6", number = "9", pages = "2392-7", }
