Management

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Assessment of the Practice of Logistics Outsourcing to Third- Party Logistics Service Providers: Case of Exporters in the Leather Industry of Addis Ababa
(Addis Ababa University, 2016-05) Goshu, Tibltse; Assefa, Teklegiorgis (Associate Professor)
The purpose of this study is to assess the current logistics outsourcing practice of leather exporting firms with the aim of identifying the logistical challenges that impede competitiveness in the global market. These are export profit margins tend to be low, often extremely low or even inexistent and also complicated customs procedures and delays are also quoted as major export constraints and also customer complaints as a result of not deliver on time and encounter unnecessary cost because of lack of safety and insecurity. In this study descriptive type of research is applied and to get relevant information about the study both primary and secondary data were used. This research finding has shown the industry is facing some logistical challenges that would hinder the leather sector export competitiveness. To overcome outsourcing logistics challenges, outsourcing firms have to actively manage their relationship with the third party logistics service providers, empower the outsourcing team through training, set proper selection criteria, indicate the scope of the service in written contract and follow up. Key Words: Logistics, Outsourcing, 3PLs, Leather Industry