Assessment of the Practice of Logistics Outsourcing to Third- Party Logistics Service Providers: Case of Exporters in the Leather Industry of Addis Ababa
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Date
2016-05
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Addis Ababa University
Abstract
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
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Keywords
Logistics; outsourcing; 3PLs; leather industry