Outsourcing: Which Way Forward? An Essay

Goddard, G. Jason; Ajami, Riad A.

doi:10.1080/10599230801981878

Cited by 4 publications

(3 citation statements)

References 10 publications

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“…However, in some cases, using low cost as the sole criterion did not produce the desired results. This is in line with Goddard and Ajami's (2008) argument that the need to pursue labor cost advantages must be balanced by the need to pursue sustainable competitive advantage. For example, having picked a supplier due to low cost, M1 had several issues with the supplier including finding out that the supplier actually lacked sourcing experience and that its workers had a relatively poor work ethic.…”

Section: Costsupporting

confidence: 80%

“…Low cost has been the primary driver for sourcing from developing countries. However, other criteria that focus on strategic issues and the strategic implications of supplier selection are equally important (Vonderembse and Tracey, 1999;Goddard and Ajami, 2008). As such, other sourcing criteria might need to be considered given the increasing availability of low cost sourcing locations in developing countries.…”

Section: Introductionmentioning

confidence: 99%

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Criteria for sourcing from developing countries

2009

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Purpose -Increasingly, sourcing decisions are routinely including contract manufacturers and suppliers in developing countries. While many studies have researched and identified the criteria for selecting suppliers in general terms, there has been a dearth of studies on the criteria for choosing amongst suppliers in developing countries including suppliers in Eastern Europe, Asia and Africa. The purpose of this paper is to investigate the criteria for choosing amongst suppliers in different developing countries. Design/methodology/approach -The methodology consists of a series of case studies involving six firms some of which are sourcing from developing countries and some that are based in developing countries and supply lead firms in developed countries. Findings -Cost, physical and cultural proximity, political factors and reliability are found to be the primary criteria for sourcing decisions that include suppliers in Eastern Europe, Asia and Africa. Further, the paper identifies why these criteria are used and the drawbacks in using them.Research limitations/implications -A key limitation of the study is generalizability. Based on the use of a case study methodology, caution should be exercised in generalizing the results of the study. Originality/value -In spite of the limitations, this paper contributes to the extant literature on sourcing from developing countries. It provides valuable insights for global purchasing managers interested in sourcing from developing countries in terms of the criteria for choosing a particular location for sourcing and selecting a supplier within a given location.

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Section: Costsupporting

confidence: 80%

Section: Introductionmentioning

confidence: 99%

Criteria for sourcing from developing countries

2009

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“…Although, Goddard and Ajami (2008) acknowledged that the criteria are based on strategic problems and the implications of supplier selection are significant. Hence, other selection criteria should be factored in, due to the availability of low cost suppliers (Oke et al, 2009).…”

Section: Selection Of 3pl Criteria and 3pl Value Deliverymentioning

confidence: 99%

An Exploratory Study of the strategeic of third party logistics for cost Reduction And customer statisfactiin the oil and Gas

Sakty

2020

المجلة المصرية للدراسات التجارية

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This paper investigates perspectives and trends in the outsourcing of logistics functions by Nigerian oil and gas firms in order to further comprehend the impact of deploying 3PLs on performance, particularly with regard to cost-savings and user-firm"s satisfaction. The research participants are mainly top management staff consisting of managers and supervisors in charge of areas of logistics, supply chain and procurement. A total of seven ( 7) oil and gas firms listed in the directory of oil companies in Nigeria took part in the study. The study adopted a quantitative approach, gathering data through the administration of an online questionnaire survey, and resultant data consequently analysed. Findings show that oil companies in Nigeria mainly outsource in order gain cost-savings (through price-reduction) in procuring logistics operations, financial stability and opportunity to use the expertise and skills of 3PLs. Results indicate that outsourcing of logistics has a significant impact on overall firm"s performance, with particular relation to the level of improved productivity, organisational effectiveness and acquisition of new customers. However, given hesitation by some stakeholders, 3PLs in the Nigerian market are expected to improve upon their current services in order to attract more patronage. On the whole, firms outsourcing services showed optimism that using 3PLs will continue to generate a positive impact on the performance of their organisations.

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Investing in Warehouse and Industrial Property

Goddard

Marcum

2012

Springer Texts in Business and Economics

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Outsourcing: Which Way Forward? An Essay

Cited by 4 publications

References 10 publications

Criteria for sourcing from developing countries

Criteria for sourcing from developing countries

An Exploratory Study of the strategeic of third party logistics for cost Reduction And customer statisfactiin the oil and Gas

Investing in Warehouse and Industrial Property

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