Outsourcing of Staff’s Transportation: From A To Z

Proceedings of the 7th International Conference on Applied Research in Business, Management and Economics

Year: 2024

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Outsourcing of Staff’s Transportation: From A To Z

ShemsEddine Lehmer, Oumaima Lehmer, Baba ElKharchi

 

ABSTRACT:

Nowdays, many companies rely heavily on outsourced services and suppliers that contribute to the production process in one or more ways. Logistics outsourcing aims to achieve fundamental objectives that are at the heart of a company’s profitability and satisfaction of their customers. It therefore follows that third-party logistics providers are important to these companies. Consequently, we have identify the chances of success of outsourcing to third-party logistics providers. The target population of the study we leaded consisted of agricultural businesses surrounding South of Moroccoand. The objective of this research is to develop a strategic framework for outsourcing success that takes into account the following process enablers: the governance mechanism (collaborative approach and mutual conflict resolution), selection criteria, performance’s mesure and the customer’s satisfaction. Studies on outsourcing abound in the literature, where the main focus is on the reasons for outsourcing, outsourced activities, and outsourcing success factors. Some researchers say that outsourcing logistics constitutes a business risk whose success is far from reality. It remains unclear what exactly ensures outsourcing success, given that shippers have many strategic reasons to outsource. Although companies’ reasons for outsourcing are less likely to ensure success, these factors are seen as contributing to outsourcing success. This study establishes the impact of these three factors on the success of outsourcing and also explains how closely these factors are linked to the reasons for outsourcing. This research identifies a governance mechanism comprising a collaborative approach of both parties and mutual conflict resolution as tools to avoid conflicts and obstacles to success. The second factor explored concerns the selection criteria that enable a good match between the company and the service provider.The third factor is provider’s service performance assessment, which encompasses strategic planning metrics, supplier metrics, production metrics, and delivery performance metrics. This study makes both theoretical and practical contributions. Theoretically, it offers an empirical framework for strategic outsourcing success with three identified enabling processes that help shippers achieve their outsourcing goals. These study variables are conceptualized, defined, and tested for their significant relationships using structural equation modeling, an analysis technique rarely used in the outsourcing literature. This study is unique in that the strategic objectives (reasons) of logistics outsourcing do not necessarily determine the success of outsourcing, but more indirectly through the enabling processes mentioned above, thus suggesting their important role in the world of outsourcing between companies and service providers.

keywords: Transport; Logistics; Outsoursing ; Performance