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Modeling the logistics outsourcing relationship variables to enhance shippers' productivity and competitiveness in logistical supply chain

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  • M.N. Qureshi
  • Dinesh Kumar
  • Pradeep Kumar

Abstract

Purpose - The purpose of this paper is to model the key variables of logistics outsourcing relationship between shippers and logistics service providers (LSPs) and to study their influence on productivity and competitiveness of the shipper company. Design/methodology/approach - In this paper, an interpretive structural modeling (ISM) based approach has been used to model the variables of logistics outsourcing relationship. Various variables, used by researchers and practiced by the shippers for effective management of logistics outsourcing relationship have been identified. These variables have been classified as enablers and outcome variable. Enablers are those variables that boost the “relationship bond” between shippers and LSPs, while outcome variables are the resultant variables arising out of outsourcing relationship between shippers and LSPs. Findings - A key finding of this modeling helps shippers as well as LSPs to take various initiatives, in order to have prosperous, outsourcing relationship between shippers and LSPs. Top management from both shippers as well as LSPs should focus, on improving on the enablers such as trust or commitment, direct assistance, long term contract, evaluation of supplier performance, practices of TQM and JIT to add distinctive values, and top management support. Originality/value - In this research, an interpretation in terms of driving and dependence powers has been carried out for enablers and outcome variables of logistics outsourcing relationship. Those variables found possessing strong driving power in the ISM model, need to be taken care on a priority basis because of their impact on dependent variables. A variable emerging with high dependence contributes to productivity enhancement and competitiveness in a logistical supply chain.

Suggested Citation

  • M.N. Qureshi & Dinesh Kumar & Pradeep Kumar, 2007. "Modeling the logistics outsourcing relationship variables to enhance shippers' productivity and competitiveness in logistical supply chain," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 56(8), pages 689-714, November.
    • Handle: RePEc:eme:ijppmp:v:56:y:2007:i:8:p:689-714
    DOI: 10.1108/17410400710833001
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    Citations

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    Cited by:

    1. Govindan, Kannan & Chaudhuri, Atanu, 2016. "Interrelationships of risks faced by third party logistics service providers: A DEMATEL based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 177-195.
    2. Mohamed Rafik Noor Mohamed Qureshi, 2022. "Evaluating Enterprise Resource Planning (ERP) Implementation for Sustainable Supply Chain Management," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    3. Yana Hendayana, 2019. "The Effect of Productivity and Innovation on the Competitiveness of Batik SMEs in West Java Indonesia," GATR Journals jmmr204, Global Academy of Training and Research (GATR) Enterprise.
    4. Arif Jamal Habib Gokak & Smita Mehendale & Sanjay M. Bhāle, 2023. "Modelling and analysis for higher education shadow institutions in Indian context: an ISM approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 3425-3451, August.
    5. Mohamed Rafik Noor Mohamed Qureshi, 2022. "A Bibliometric Analysis of Third-Party Logistics Services Providers (3PLSP) Selection for Supply Chain Strategic Advantage," Sustainability, MDPI, vol. 14(19), pages 1-25, September.
    6. Paranitharan Kannusamy Panneer Selvam & Ramesh Babu Thangavelu, 2019. "The IMBES model for achieving excellence in manufacturing industry: an interpretive structural modeling approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 10(4), pages 602-622, August.
    7. Mohamed Rafik Noor Mohamed Qureshi, 2022. "Evaluating and Prioritizing the Enablers of Supply Chain Performance Management System (SCPMS) for Sustainability," Sustainability, MDPI, vol. 14(18), pages 1-21, September.
    8. Balakrishnan, VN & Mohamad Khan, Jamal Khan, 2018. "Influential Factors of Competitive Advantage Progression on SME Third-Party Logistics in Selangor Malaysia," MPRA Paper 89091, University Library of Munich, Germany.
    9. Sujan Piya & Ahm Shamsuzzoha & Mohammad Khadem & Nasr Al-Hinai, 2020. "Identification of Critical Factors and Their Interrelationships to Design Agile Supply Chain: Special Focus to Oil and Gas Industries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 263-281, September.
    10. Omoruyi Osayuwamen, 2018. "Competitiveness Through the Integration of Logistics Activities in SMEs," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 63(3), pages 15-32, December.
    11. Vokoun Marek, 2017. "Productivity of Czech logistic firms: quality orientation, entrants and multinationals," Studia Commercialia Bratislavensia, Sciendo, vol. 10(38), pages 239-247, September.
    12. Sangita Choudhary, 2016. "Equity Investment Decisions: Determinants for Retail Investors," Jindal Journal of Business Research, , vol. 5(2), pages 131-144, December.
    13. Li, Ling, 2011. "Assessing the relational benefits of logistics services perceived by manufacturers in supply chain," International Journal of Production Economics, Elsevier, vol. 132(1), pages 58-67, July.
    14. Kuldeep Singh & Madhvendra Misra, 2021. "Developing an agricultural entrepreneur inclination model for sustainable agriculture by integrating expert mining and ISM–MICMAC," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 5122-5150, April.
    15. Shiang-Min Meng, 2014. "Logistics Image of Outsourcing Clients to The Wireless Telecommunications Industry: How is it related to The Service Value of Air Cargo Logistics Providers?," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 4(8), pages 940-955, August.
    16. Alpana Agarwal & Prem Vrat, 2015. "Line and Staff Functions in Organizations Revisited: A Bionic System Analogy Using ISM," Vision, , vol. 19(2), pages 89-103, June.
    17. Alpana Agarwal & Prem Vrat, 2017. "Modeling Attributes of Human Body Organization Using ISM and AHP," Jindal Journal of Business Research, , vol. 6(1), pages 44-62, June.
    18. Suman Gothwal & Tilak Raj, 2017. "Analyzing the factors affecting the flexibility in FMS using weighted interpretive structural modeling (WISM) approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(2), pages 408-422, June.
    19. Bouzon, Marina & Govindan, Kannan & Rodriguez, Carlos Manuel Taboada, 2015. "Reducing the extraction of minerals: Reverse logistics in the machinery manufacturing industry sector in Brazil using ISM approach," Resources Policy, Elsevier, vol. 46(P1), pages 27-36.
    20. Gede Ginaya, 2019. "Mixed-Strategies of Marketing in BBTF: Seller Persuasion Towards Prospective Buyers," GATR Journals jmmr203, Global Academy of Training and Research (GATR) Enterprise.
    21. He-Yau Kang & Meng-Chan Hung & W. L. Pearn & Amy H. I. Lee & Mei-Sung Kang, 2011. "An Integrated Multi-Criteria Decision Making Model for Evaluating Wind Farm Performance," Energies, MDPI, vol. 4(11), pages 1-25, November.

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