Commenced in January 2007
Paper Count: 30172
Logistics Outsourcing: Performance Models and Financial and Operational Indicators
Abstract:The growing outsourcing of logistics services resulting from the ongoing current in firms of costs reduction/increased efficiency means that it is becoming more and more important for the companies doing the outsourcing to carry out a proper evaluation. The multiple definitions and measures of logistics service performance found in research on the topic create a certain degree of confusion and do not clear the way towards the proper measurement of their performance. Do a model and a specific set of indicators exist that can be considered appropriate for measuring the performance of logistics services outsourcing in industrial environments? Are said indicators in keeping with the objectives pursued by outsourcing? We aim to answer these and other research questions in the study we have initiated in the field within the framework of the international High Performance Manufacturing (HPM) project of which this paper forms part. As the first stage of this research, this paper reviews articles dealing with the topic published in the last 15 years with the aim of detecting the models most used to make this measurement and determining which performance indicators are proposed as part of said models and which are most used. The first steps are also taken in determining whether these indicators, financial and operational, cover the aims that are being pursued when outsourcing logistics services. The findings show there is a wide variety of both models and indicators used. This would seem to testify to the need to continue with our research in order to try to propose a model and a set of indicators for measuring the performance of logistics services outsourcing in industrial environments.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1082873Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1730
 Y.-Y. Song, T. Maher, J.D. Nicholson, N.P. Gurney, "Strategic alliances in logistics outsourcing". Asia Pacific Journal of Logistics and Marketing, , 2000, 12(4), 3-21.
 R. Wilding, R. Juriado, "Customer perceptions on logistics outsourcing in the European consumer goods industry." International Journal of Physical Distribution & Logistics Management, 2004, 34(7), 628.
 R. Rajesh, S. S. Pugazhendhi, K. Ganesh, C. Muralidharan, R. Sathiamoorthy, "Influence of 3PL service offerings on client performance in India"), pp Transportation Research Part E: Logistics and Transportation Review, 2011, 47(2), 149-165.
 A. Krizman, "Involvement, knowledge sharing and proactive improvement as antecedents of logistics outsourcing performance." Economic and Business Review for Central and South - Eastern Europe, 2009,11(3), 233.
 P. Gaiardelli, N. Saccani, L. Songini, "Performance measurement of the after-sales service network-evidence from the automotive industry." Computers in Industry, 2007, 58(7), 698.
 J.B. Heide, and G. John, "Do norms matter in marketing relationships?", Journal of Marketing, 1992, Vol. 56, pp. 32-44.
 C. Engelbrecht, Logistikoptimierung durch Outsourcing. Erfolgswirkung und Erfolgsfaktoren, Wiesbaden: Deutscher Universitat Verlag, 2004.
 J. Deepen, Logistics Outsourcing Relationships: Measurement, Antecedents and Effects of Logistics Outsourcing Performance, Heidelberg: Physica-Verlag, 2007.
 F. Krakovics, J.E. Leal, P. Mendes, Jr.; R.L. Santos, "Defining and calibrating performance indicators of a 4PL in the chemical industry in Brazil." International Journal of Production Economics, 2008 115(2), 502.
 B.M., Beamon, "Measuring supply chain performance" International Journal of Operations and Production Management, 1999, 19, 275-292.
 F. Wynstra, B. Axelsson, W. Van der Valk, "An application-based classification to understand buyer-supplier interaction in business services." International Journal of Service Industry Management, 2006, 17(5), 474−496.
 C. Chee-Cheng, "A model for customer-focused objective-based performance evaluation of logistics service providers." Asia Pacific Journal of Marketing and Logistics, 2008, 20(3), 309-309-322.
 C-C.Sum, C-B. Teo, K-K. Ng, (2001). "Strategic logistics management in singapore." International Journal of Operations & Production Management, 2001, 21(9), 1239-1239-1260.
 D. Power, M. Sharafali, V. Bhakoo, "Adding value through outsourcing: Contribution of 3PL services to customer performance MRN." Management Research Review, 2007, 30(3), 228.
 B S. Sahay, R. Mohan, "3PL practices: An indian perspective." International Journal of Physical Distribution & Logistics Management, 2006, 36(9), 666
 A.D. Neely, Measuring Business Performance. Economist Books, London, 1998.
 A. Neely, J. Mills, K. Platts, H. Richards, M. Gregory, M. Bourne, M. Kennerley, "Performance measurement system design: Developing and testing a process-based approach." International Journal of Operations & Production Management, 2000, 20(10), 1119-1145
 R.S . Kaplan, D.P. Norton, "The balanced scorecard - measures that drive performance" Harvard Business Review, 1992, January-February. 71-9
 D.P. Keegan, R.G. Eiler, C.R. Jones, "Are your performance measures obsolete?" Management Accounting, 1989, June, pp. 45-50.
 L. Fitzgerald, R. Johnston, S. Brignall, R. Silvestro, C. Voss, Performance Measurement in Service Business. CIMA, London, 1991.
 G. Azzone, C. Masella, U. Bertele, "Design of performance measures for time-based companies." International Journal of Operations & Production Management, 1991, 11(3), 77-85.
 A.D. Chandler, The Visible Hand: Managerial Revolution in American Business, Harvard University Press, Boston, MA, 1977.
 R.L. Lynch, K.F. Cross, Measure Up - the Essential Guide to Measuring Business Performance, Mandarin, London, 1991.
 M. Brown, Keeping Score: Using the Right Metrics to Drive World Class Performance, Quality Resources, New York, NY, 1996.
 A. Neely, C. Adams, P. Crowe, "The performance prism in practice." Measuring Business Excellence, 2001, 5(2), 6
 A.F.D. Toni, A. Fornasier, M. Montagner, F. Nonino, "A performance measurement system for facility management: The case study of a medical service authority." International Journal of Productivity and Performance Management, 2007, 56(5), 417.
 C. Medina L├│pez, J.A. Mar├¡n Garc├¡a, R. Alfalla-Luque, "Una propuesta metodol├│gica para la realizaci├│n de b├║squedas sistem├íticas de bibliograf├¡a." Working Papers on Operations Management, 2010, 1(2), 13-30.
 J.A.D. Machuca, M.M. Gonz├ílez Zamora, V.G. Aguilar Escobar, "Service operations management research". Journal of Operations Management, 2007, 25(3), 585−603.
 S. Grimaldi, C. Rafele, "Current applications of a reference framework for the supply chain performance measurement." International Journal of Business Performance Management, 2007, 9(2), 206-225
 M. Giannakis, "Performance measurement of supplier relationships." Supply Chain Management, 2007, 12(6), 400.
 K.L. Choy, H.K.H. Chow, W.B. Lee, F.T.S. Chan, "Development of performance measurement system in managing supplier relationship for maintenance logistics providers." Benchmarking, 2007, 14(3), 352.
 H. Min, S.J. Joo, "Benchmarking the operational efficiency of third party logistics providers using data envelopment analysis." Supply Chain Management, 2006, 11(3), 259.
 D. Hannon,. "3PL performance metrics: Michelin keeps it simple." Purchasing, 2003, 132, 106-109.
 B. Jiang, & A. Qureshi, "Research on outsourcing results: Current literature and future opportunities." Management Decision, 2006, 44(1), 44-44-55.
 P.S. Drucker, The Practice of Management, Harper & Row, New York, NY, 1954.
 J.B. Holmstrom, & P. Aavikko, ÔÇÿÔÇÿAchieving a management breakthrough in inbound logistics by improving the efficacy of operational decisions--, Production and Inventory Management Journal, 1994, Vol. 35 No. 3, pp. 1-8.
 D.N.P. Murthy, O. Solem, & T. Roren, ÔÇÿÔÇÿProduct warranty logistics: issues and challenges--, European Journal of Operational Research, 2004, Vol. 156, pp. 110-26.
 H.L. Richarson, "Logistics help for the challenged", Transportation & Distribution, 1995, Vol. 36 No. 1, pp. 60-4