Outsourcing or insourcing logistics activities: a Brazilian case study

Silva, Lucas Eric Da; Doratiotto, Kaique; Vieira, José Geraldo Vidal

doi:10.1504/ijism.2019.099702

Cited by 6 publications

(16 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For criteria comparison, in the process of determining their weights using the fuzzy AHP method, as well as for the alternatives evaluation, in the process of selecting the most favorable one using the fuzzy VI-KOR method, a fuzzy linguistic scale that can be converted into triangular fuzzy numbers is used (Table 1). Fairly high FH (6,7,8) High H (7,8,9) Very high VH (8,9,10) Extremely high EH (9,10,10) Various procedures have been developed to solve the fuzzy AHP method, and in this study the logarithmic fuzzy preference programming (LFPP) method is used [28], which approximates the fuzzy evaluations ̃′ from the matrix ̃′ , which represents a comparison of criterion i in relation to criterion j, by the following relation:…”

Section: Scenarios Evaluationmentioning

confidence: 99%

“…, ≥ 0, = 1, … , − 1; = + 1, … , . (6) where xi=lnwi for i=1,...,n, and M is the large enough constant such as M=10 3 . ij and ηij are nonnegative deviation variables introduced to avoid λ from taking a negative value.…”

Section: Scenarios Evaluationmentioning

confidence: 99%

“…The development of new strategies and business models based on the improvement of logistics activities are becoming a key weapon in the fight for a better place in the market [2,3]. In this process, it is necessary to adequately identify and explain the role of logistics in the company's strategy and achieving a competitive advantage [4,5], which largely depends on whether the company carries out logistics activities itself (insourcing) or hires specialized logistics service providers (outsourcing) [6]. Although for the past few decades the outsourcing has been seen as a trend for companies whose core business is not logistics, insourcing still stands out as a business strategy that suits trading companies because it allows a greater degree of vertical integration and better control of the company's supply chain [7].…”

Section: Introductionmentioning

confidence: 99%

“…Although for the past few decades the outsourcing has been seen as a trend for companies whose core business is not logistics, insourcing still stands out as a business strategy that suits trading companies because it allows a greater degree of vertical integration and better control of the company's supply chain [7]. Moreover, for the past few years some researchers point out the trend of returning from outsourcing to insourcing business strategy [6]. Accordingly, the subject of this paper is the development of a logistics system in a trading company based on the principles of insourcing.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Evaluation of the logistics system development scenarios: Case study of the trading company

Tadić¹,

Zečević²,

Krstić³

2020

Tehnika

View full text Add to dashboard Cite

The paper presents the procedure for selecting a scenario for the development of the logistics system in a company with a developed trading and logistics network, but also with the significant supply problems. In order to solve the existing logistics problems, but also to respond to future requirements and business plans, four logistics system development scenarios are defined. Each scenario has certain characteristics which can be seen as the advantages or disadvantages in the comparative analysis. Since the choice of development scenarios depends on several factors, their ranking in terms of different criteria requires the application of multi-criteria decision-making (MCDM) methods. A hybrid model based on a combination of the fuzzy AHP (Analytical Hierarchy Process) and fuzzy VIKOR (Višekriterijumska Optimizacija i kompromisno Rešenje) methods was used to solve the problem.

show abstract

Section: Scenarios Evaluationmentioning

confidence: 99%

Section: Scenarios Evaluationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Evaluation of the logistics system development scenarios: Case study of the trading company

Tadić¹,

Zečević²,

Krstić³

2020

Tehnika

View full text Add to dashboard Cite

show abstract

“…Insourcing is defined as a project whose aim is to include processes that have been carried out so far outside the borders of the organisation. Insourcing as an economic phenomenon has been the subject of research for many years (Hirschheim and Lacity, 2000; Schniederjans and Zuckweiler, 2004; Caputo and Palumbo, 2005; Brege et al , 2010; Singhania and Gupta, 2014; Chaudhury et al , 2015; Tate and Bals, 2017; Ozturk, 2018; Silva et al , 2019; Damanpour et al , 2020; Nujen et al , 2019). Most often, these studies are based on case studies or theoretical models without empirical verification of the financial consequences of insourcing on a larger group of companies.…”

Section: Introductionmentioning

confidence: 99%

Does insourcing of processes pay off?

Grela

Hofman

2021

JGOSS

View full text Add to dashboard Cite

Purpose This study aims to examine whether insourcing of processes pays off and verifies key hypotheses regarding the financial ratios of organisations. Design/methodology/approach This paper randomly selects and then surveys 1996 organisations, of which 9.5% (190) stated that they used insourcing, 1.9% (37) made a decision to implement insourcing in the near future and 88.6% did not use insourcing. Then, for available firm data (100 insourcing firms and 100 firms without it), the financial statements of the surveyed companies were obtained to compare the most important financial ratios. The financial situation was compared at four-time points. The mean and median values of individual indicators were compared with the significance of relevant statistical tests. Findings A U-shaped curve of financial results in the time of enterprises that implemented insourcing and reverse U-shaped curve for enterprises that did not have insourcing are seen. Thus, the insourcing of processes pays off in the long run. Research limitations/implications Limitations exist in the generalisation of the results obtained, due to the limited number of samples qualified for analyses (limited reliable financial data). Practical implications The research highlights the importance of effective insourcing projects in the long term. Originality/value This study is the first to quantify the financial performance of companies that have used insourcing in comparison with a reference group. This paper defines insourcing and contributes to the growing number of studies on insourcing by bringing attention to the financial outcomes in the long run.

show abstract

Evaluating logistics outsourcing: a survey conducted with Brazilian industries

Doratiotto¹,

Vieira

Silva

et al. 2022

BIJ

Self Cite

View full text Add to dashboard Cite

PurposeThis research aims to evaluate the factors that influence logistics outsourcing, including the impact of logistics outsourcing on measuring companies' logistics performance. This research provides interactions among the various factors (constructs) such as “financial”, “collaboration and process characteristics”, “external influencer”, and “logistics performance”.Design/methodology/approachTo investigate the interaction between the constructs, structural equation modelling is proposed to understand what the relevant criteria are while outsourcing logistics. Data were acquired from surveys conducted with 129 managers from Brazilian companies in the industry sector.FindingsThe factor “collaboration and process characteristics” is what most influences the “logistics performance” of companies, highlighting the importance of managing contractors; and the “financial” factor also contributes to the logistic outsourcing decision.Research limitations/implicationsSome limitations of this study need to be clarified. First, the model could test the moderate and mediate aspects by using variables inspired on RBV and TCE. Second, the sample is relatively small and restricted to the Brazilian industries' case, although the results may be useful for other countries in the world. Third, the responses represent viewpoints of the people who work in the companies. To address this issue, the authors asked respondents to fill out the questionnaire from the perspective of the organisation.Practical implicationsMost 3PL come from developed countries and find different requirements in Brazil. Then, this new knowledge may help 3L providers better understand the needs of the local or foreign companies that operate in the local market. The measurement model may also help to construct a new organisational process, as it sheds light on the main elements necessary for gathering logistics performance outcomes.Originality/valueTo the best of the authors' knowledge, the literature lacks studies on the interaction among these logistics outsourcing constructs, mainly in emerging markets where significant growth opportunities have led to logistics activities being outsourced. The literature that examines the impact of these constructs on logistics performance is also limited. Therefore, this research contributes to providing a model that measures these impacts according to the company's point of view.

show abstract

Outsourcing or insourcing logistics activities: a Brazilian case study

Cited by 6 publications

References 0 publications

Evaluation of the logistics system development scenarios: Case study of the trading company

Evaluation of the logistics system development scenarios: Case study of the trading company

Does insourcing of processes pay off?

Evaluating logistics outsourcing: a survey conducted with Brazilian industries

Contact Info

Product

Resources

About