Impact of Logistics Outsourcing on Retail Companies in UK

An Investigation on impact of logistics outsourcing on
the performance of Retail companies in UK
INTRODUCTION
Logistic Outsourcing is referred to the process of using outside parties
to perform different operations which is traditionally handled by
internal stakeholders i.e. staff and resources. The main goal of the study
is to analyse the significance, challenges and impacts of logistic
outsourcing on the performance of retail companies in UK.
Aim: “To investigate on impact of logistic outsourcing on the
performance of Retail companies in UK.
Objectives:
 To evaluate significance of logistic outsourcing.
 To investigate Impacts of logistic outsourcing on the retail
companies
 To identify challenges of Logistic outsourcing
METHODOLOY
There are various research methods used for collecting date which has based
on impact of logistics outsourcing on the retail industry of the United
Kingdom. Mainly secondary sources of data collection method have helps
in this assessment for finding various literatures. There is internet, books &
journals, newspaper articles etc. are some major secondary sources of
research (Lin and et.al., 2016). Literature review which has been included in
this assessment are completely collected through these all secondary
sources. Currently each researcher has highly required to use these all
sources for properly completing its research project. In this situation, these
sources have played great role in finding of these mentioned literature
reviews as well.
Data collection
This information is collected from internet, books, journals and
magazines. These are authentic sources which helps to understand role of
logistic outsourcing and it’s impact in retail companies performance.
MAINBODY
Significance of Logistic outsourcing
Logistic is the procedure of planning and carrying sufficient
transportation and storage of goods from the original place (manufacturing) to
the other place (consumer). The main aim of the logistic is to meet customer
objectives by offering desired product on time (Grant and Philipp, 2020).
Logistic outsourcing helps organization to give product on lower cost along
with good quality. Due to outsourcing gets raw material on low cost by
organization that reduces operational cost as well. There are numerous benefits
of logistic such as they help to fulfil customer demands on time that leads
satisfaction in them for the product. It gives visibility in organization’s supply
chain for example supplier initially gets raw material from manufacturer then
delivers to retailer, in last to user.
Impacts of logistic outsourcing on the retail companies
Most of the retail industries outsources of logistic to get high quality
product on lower cost. another reason behind is that organization gets chance to
expand it’s business in other countries by building trade relation with them. It
improves supply chain effectiveness within company. Organization gets
positive impact on their operations such as external logistic companies performs
logistic functions. In that situation, organization does not have to pay high cost
on manufacturing as result operational cost reduces (Baglio, Creazza and
Dallari, 2019). This approach influences working efficiency of internal staff at
workplace and they easy to satisfy large number of customers on time. In olden
time business activities coordinate within a business but currently it has
changed. Now outsourcing coordinates action with different firms which helps
company to grow its business and generates profit margin on products. Overall
retail companies get effective result of logistic outsourcing within business.
Challenges of Logistic outsourcing
There are various challenges that are faced by organization while
adopting logistic outsourcing strategy such as cost that is major issue currently.
The reason behind is that most of the external logistic companies requires high
cost for the input due to omnichannel as result leads economical loss within
business. It requires high maintenance that is another challenge for company
because sometime external logistic companies cheat with business of offering
low3 quality products (Bahr and Sweeney, 2019).
REFERENCES
Baglio, M., Creazza, A. and Dallari, F., 2019. Rating the quality of logistics real estate: insights from an
empirical investigation in UK and Italy. Summer School Francesco Turco. Proceedings.
Bahr, W. and Sweeney, E., 2019. Environmental Sustainability in the Follow-Up and Evaluation Stage of
Logistics Services Purchasing: Perspectives from UK Shippers and 3PLs. Sustainability. 11(9). p.2460.
Grant, D. and Philipp, B., 2020, March. An international study of the impact of B2C logistics service quality on
shopper satisfaction and loyalty. In 17th Toulon-Verona international conference proceedings.
CONCLUSION
The Brief study given understanding about significance of
Logistic outsourcing. It concluded impacts of logistic outsourcing on the
retail industry performance and its operations. It can be summarized
challenges of logistic outsourcing which faced by retail industries within
business.