A1 Refereed original research article in a scientific journal
Logistics outsourcing, its motives and the level of logistics costs in manufacturing and trading companies operating in Finland
Authors: Solakivi T, Toyli J, Ojala L
Publisher: TAYLOR & FRANCIS LTD
Publication year: 2013
Journal: Production Planning and Control
Journal name in source: PRODUCTION PLANNING & CONTROL
Journal acronym: PROD PLAN CONTROL
Volume: 24
Issue: 4-5
First page : 388
Last page: 398
Number of pages: 11
ISSN: 0953-7287
DOI: https://doi.org/10.1080/09537287.2011.648490
Abstract
This article explores the various aspects of logistics outsourcing in companies operating in Finland. The aim is to identify the connection between outsourcing, its motives and logistics costs. The data comprise a survey sample of 299 manufacturing and trading firms. Descriptive statistical analyses, analysis of variance and factor analysis were applied. Transport activities are outsourced to a large extent. The majority of companies manage most other logistics operations in-house. The outsourcing of product customisation, inventory management and warehousing is expected to become more common in the future. Cost savings together with flexibility and customer service were found to be the major motives for outsourcing. A connection between logistics costs and logistics outsourcing was identified: companies with higher levels of outsourcing are experiencing lower levels of logistics costs compared to those with lower levels of outsourcing or none at all.
This article explores the various aspects of logistics outsourcing in companies operating in Finland. The aim is to identify the connection between outsourcing, its motives and logistics costs. The data comprise a survey sample of 299 manufacturing and trading firms. Descriptive statistical analyses, analysis of variance and factor analysis were applied. Transport activities are outsourced to a large extent. The majority of companies manage most other logistics operations in-house. The outsourcing of product customisation, inventory management and warehousing is expected to become more common in the future. Cost savings together with flexibility and customer service were found to be the major motives for outsourcing. A connection between logistics costs and logistics outsourcing was identified: companies with higher levels of outsourcing are experiencing lower levels of logistics costs compared to those with lower levels of outsourcing or none at all.
UTU Research Portal