Padmakar I. Shahare1 and Mukul A. Burghate2
1Assistant Professor, Operations Management, GWCET, Nagpur, Maharashtra, India
2Associate Professor, Research Methodology, PDIMTR, Nagpur, Maharashtra, India
Article Info
Volume 83
Page Number: 565 - 572
Publication Issue:
May - June 2020
Article History
Article Received: 11 August 2019
Revised: 18 November 2019
Accepted: 23 January 2020
Publication: 09 May 2020
Abstract:
In this current dynamic market environment and turbulent time of COVID-19 the role and performance of logistic services has increased manifold. The logistics service provider has contributed to innovations and delivery in their customer’s supply chain in recent time and hence they are important and relevant to the marketer’s revenue and profit creation. This article emphasizes on customer perceptions and preference towards in-house logistic and out sourcing logistics decisions. The questions faced by the manufacturer and marketers are: Why to outsource? How to outsource? What to outsource? Where to outsource? When to outsource? etc. The study and analysis of the various literature and research published earlier reveals that outsourcing in the White goods industry and FMCG is very competitive, service oriented and inclined towards third party logistic model (3PL). This study is based on the qualitative and quantitative research of in-house and outsource logistics model in the state of Maharashtra (India). For this research paper, primary data is collected via Google Doc and Likert scale is used for the analysis.
Keywords: Customer Perception, preference, In-house logistics, Outsourcing, 3PL, etc.
I. INTRODUCTION
The logistics industry has undergone a sea change in terms of technology, competiveness and service orientations. The manufacturers and marketers are now keen on concentrating on the Quality, Price and Promotion of the product instead of Physical distribution and Logistics. This has made them more dependent and consistent towards 3PLs for product delivery. Third party logistics is used for traditional logistics functions, like transportation or warehousing and for other services, such as reverse logistics and supply chain management. It has been estimated that about 40% of the global logistics is outsourced. (Wong et al. 2000).
Logistics is a process and organizations of movement of goods across the supply chain of a company till it reaches its end user. This setup consists of various functions that have to be properly accomplished to bring effectiveness and efficiency for the organization.
DEFINITIONS:
1) In-house Logistics: In-house Logistics is defined as organization, linkages, controlling and communication for physical distribution of the product by the manufacturing firm to its End-user.
Here all the onus and responsibility lies on the manufacturing firm to efficiently deliver and serve the supply chain and the end-users. The Logistics function of the firm behaves as a separate and independent entity in most of the cases.
In-house logistics means handling materials and products within own organization. There are various services and functions for in-house logistics likeOrder processing, Inventory control, Warehousing, Transportation, Material handling and storage system, Logistical packaging, Information
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