Abstract:
Outsourcing, where an organisation charges an external provider with the
performance of an activity, has attracted growing interest in recent years as
organisations have considered whether it is in their best interest to perform
activities in-house or externally. Academic attention has also focused on the
notion of
supply chain management through effective Logistics management in
organisations, as increased emphasis has been placed on the importance of
seamiess
supply chain processes for the achievement and sustenance of
competitive advantage. Some academic theorists recommend that in order to
achieve this, organisations should focus on their core, value-adding activities and
outsource the non-core, non value-adding ones.
In the UK, some petrol retailers have adopted Logistics outsourcing as a strategy
through which supply chain solutions can be implemented within their petrol
forecourt convenience retail operations. This research explores factors which
influence these outsourcing decisions, the nature and supply chain impact of the
outsourcing strategies and evaluates the supply chain role of Logistics service
providers (3pls) and the implications of Logistics outsourcing in general for supply
chain
management and for the future of the 3pl industry.
The
study examines outsourcing from are source-based, transaction costs and
supply chain perspective, highlighting the rationale behind organisations'
decisions to outsource activities for which they lack in-house capability and which
third
parties can provide at lower costs. The study adopts an exploratory, theory building
case-study approach in which data is gathered primarily through indepth
interviews with informants from retailers and 3pls. Data analysis is carried
out
through a strategy of within- and cross-case evaluation of findings,
highlighting key patterns and relationships in the data.
