Outbound Logistics Management to Enhance Efficiency in Warehouse in Australia

This paper discusses the use of outbound logistics management to enhance efficiency in warehouse in Australia. The key objective is to develop the plan on how use of outbound logistics management helps in enhancing efficiency in warehouse. The document type is a graduate project and the subject is logistics management.

Engineering Graduate Project Title
Use of Outbound Logistics Management to Enhance Efficiency in Warehouse in Australia
Student Name
Subject
Date
Abstract
Due the increasing global competitions,
different stakeholders and logistics
companies have embarked on improving the
warehouses as well as the distribution
services. This paper discussed the use of

outbound logistics management to enhance
efficiency in warehouse in Australia. It has
been noted that the outbound logistics not
only has the immense impacts but also
equitable advantages in the long run. The
key objective described in line with this
study is to develop the plan on how use of
outbound logistics management helps in
enhancing efficiency in warehouse. Also the
specific objectives for this study include
assessing the processes involved in the
outbound logistics management of the
warehouses in manufacturing as well as to
explore the challenges affecting the
outbound logistics warehousing
management. The literature studies on the
research topic have help in establishing and
giving the in-depth understanding of the
topic with the present state. The data
collection and analysis for the study largely
involved the use of both the primary and
secondary. The qualitative and quantitative
evaluation helps in defining and establishing
the clear distinction as far as the study is
concerned. Also, the data gathered helped in
drawing the deceive conclusion,
recommendations as well as limitations of
the research which requires future appraisal.
Keywords
Outbound Logistics Management,
Efficiency, Warehouse, Qualitative,
Quantitative, Limitations and
Recommendations
Chapter 1: Introduction
1.1 Background to Study
In essence, most of the organizations are
presently using the customized systems to
manage and operate their warehousing and
the overall distribution services. This aims at
improving the service delivery while at the
same time enabling these companies to

maximize on the profit. Over the years, there
have been claims on the operational
excellence as far as the delivery of quality
product is concerned. Therefore, it implies
that one must ensure that there is the
consistence in the services delivered and this
should cut across the makeable operations.
Thus, some of the manufacturing firms have
depicted on the outsourcing of the outbound
logistics with the aim of remaining
competitive in the market. Alternatively,
there are some of the manufacturing firms
which prefer the outbound logistics because
they are not in a position to do it alone [1].
Most of the companies have begun the
process of recruiting the specialist to assist
them in the performing the some of the
activities. These activities were not
considered to be the part and parcel of the
company core in line with the competency.
However, there are companies which have
the expertise to handle the daily operations
as well as the management and designs of
the warehouse as well as distribution
processes [2].
Outbound logistics is largely considered to
play an important role when appraising the
supply chain and the overall customer’s
relationship and management process
(CRM). The concept of the outbound
logistics essentially defined as the prospect
which not only relates to the movement of
the goods but also to the product storage.
This norm has to involve the movement of
the products from the makeable one of the
overall production line to the sophisticated
end user. There are different retailers which
one has to consider when dealing with the
concept of the outbound and the stringent
product and delivery standards [3]. Some of
these retailers include Target and Wal-Mart
and they hold their overall suppliers to the
parametric stringent product in line with the
delivery standard. In essence, the failure of
the suppliers to deliver the products as
outlined by the clients can equally result to

the huge losses and penalty in the long run.
Further to this, the process can also lead to
the delisting of the suppliers in the process
[4]. The delisting involves the elimination of
the suppliers from the active retail product
portfolio. Therefore, the outbound logistics
plays and represents significant factors as far
as the decision of the retailers to either retain
or not to stock from the various product
suppliers is concerned [5].
Thus, there is product flows are often
optimized along supply cost which are
driven at lower levels. Thus, the customers
are in the position of increasing services and
reducing stockholding levels. The modern
approaches help in attaining the required
flexibility which is needed to meet the
overall fast-changing and demands in the
market. There are various long supply and
chain management approaches which one
can depict as per the outbound and inbound
logistics activities. Most of the third parties
in the field tend to specialize in the
distribution and the warehousing. This is
demarcated and anticipated by many studies
as their parametric and core business [6].
Preferably, it is important to denote that the
outbound logistics comprises of the last mile
which is also regarded as the demarcated
key concepts when it comes to either the
make or the break step in line with the CRM
process. From the critical role, it can be
deduced that the planning and approach firm
tend to gain much from the outbound
logistics. The benefits are immeasurable
when analyzed in line with the insight
qualitative perception. There are few
research and studies which have focused
only on the existing links between the firm
financial and logistic performance and
profitability. For instance, it is important for
one to note that there are researches which
have only focused on the Strategic Profit
Model and they are often used in
determining the adjusting effects in line with
the logistical policies. Also, the using of the

survey data has enable some research
individuals to investigate the overall impacts
of the outbound logistics in line with the
financial performance and the operational
capabilities of some firms [7].
Although it has been deduced that there
immense impacts and benefits which the
outbound logistics have, there are minimal
research which have conducted on the case.
Some of the areas which the inadequate
researches on the outbound logistics have
been conducted in direct and stand-alone
outbound impact logistics. In essence, there
are questions which have been raised as far
as the influence on the different approaches
and profitability of the firms is concerned.
Preferably, the present literatures have
denoted that outbound logistics and the
related activities can be depicted into the
expansive studies of the overall supply chain
operations. In this process, it is important to
note that the overall outbound logistics tend
to represent one of the major sub-
components in the analysis [8].
The past analysis on the supply chain
management has included the analogy of the
outbound logistics and this tends to
encompass on the survey base at the expense
of the performance data. This study also
reported the various attempts which one can
put in place in trying to bridge the gap via
the utilization of the actual firm and
performance data. However, there are no
clear and rigorous quantitative publications
which depicts on the outbound logistics and
performance in line with the firm
profitability [9]. Thus, most of the resources
often focus on the decisive supply chain
performance. The research on the senior
executive in line with the supply chain
deduced that the norm is a critical ad
fundamental shareholder driver as far as the
corporate differentiation and value is
concerned. It was also established that the
malfunctions of the supply chain can results

to the numerous and strong negative impacts
in line with the financial and operating
income, returns on the overall sales as well
as the assets returns [10].
On the other hand, there was the study on
the supply chain and the appraisal of the
management competency in line with the
firm success. The measuring of the supply
chain in this process was largely conducted
via the application of the Delphi-style
opinion data. This was obtained from AMR
Research on the Supply Chain Top of the 25
ranking [11]. This study also applied the
Altman’s Z-score and this was used to
measure the overall financial success of the
firm. The findings obtained depicted that the
firms which had recognized the overall
industry experts to conduct their supply
chain and management competency
recorded significantly higher results in line
with the Z-scores as compared to the other
companies [12].
1.2 Research Objectives and Aims
1.2.1 Aims of Research
The aims of this research mainly discussed
as follows
Main Objective
The key and main objective of the study is
to develop the plan on how use of outbound
logistics management helps in enhancing
efficiency in warehouse
Specific Objectives
There two specific objectives outlined for
this study and they are discussed as follows
 To assess the processes involved in the
outbound logistics management of the
warehouses in manufacturing
 To explore the challenges affecting the
outbound logistics warehousing
management
1.3 Research Questions
The key research questions used for the
research study mainly outlined as discussed
below

1. What is the concept of the outbound
logistics and the management
efficiency in warehousing in
Australia?
2. What are the key benefits and
advantages associated with the
outbound logistics application in
manufacturing companies?
3. How the outbound logistics does
help in lowering the costs and
enhancing the efficiency in
warehousing utilization in Australia?
1.4 Rationale of the Research
Outbound logistics largely considered to
have emerged in most of the manufacturing
organizations and it is been used to enhance
sustainable development. The outbound
logistics is a critical element which helps in
increasing the efficiency in line with the
overall manufacturing process. However, the
manufacturing companies have continued to
report different challenges as far as
outbound logistics is concerned [13]. Most
of the challenges they faced largely results
from the capacities of these companies to be
able to source skilled experts to conduct the
analysis regarding the process. On the other
hand, it is important to deduce that there are
various impacts which the outbound
logistics have largely on the manufacturing
context. In essence, the application of the
process is largely considered as a pivoted
norm and thus, its impacts cannot be
underestimated. The contemporary literature
reviews reports that the outbound logistics is
a noble element which tends impact on the
manufacturing industries immensely as far
as the logistics and the warehousing is
concerned [14]. Considerable factors are
not only important when dealing with the
aspect but they are also essential at all costs
in the long run. The redesigning and the
evaluation of the performances as far as the
logistics and efficiency in the warehousing
is concerned cannot also be left behind when
dealing with the norm in the long run.

Outbound logistics in most cases is
considered as not only the easy target when
dealing with the cost saving but also assist in
improving the delivery speed. Most of the
companies tend to have the optimization
sorts for dealing with the overall outbound
freight and management. Notably, the
logistics management concept is considered
as a complicated process [15]. However, the
outbound logistics on the other hand, largely
considered as a fairly simple. The process
often tends to involve the movement and the
storage of the product while at the same time
maintaining safety. Although the analogy is
considered to be simple, it still has different
pain points as far as the analysis is
concerned.
1.5 Research Hypothesis
The hypothesis for this research mainly
discussed as follows [16].
Hypothesis 1: The classification of the firms
can be conducted via the application of
different groups and this can be grounded on
the makeable outbound logistics
Hypothesis 1: orientation of the outbound
logistics in line with the groups identified
plays an essential role when appraising the
profitability levels in the organization
Hypothesis 1: the overall outbound delivery
in line with the metrics is largely associated
with the overall industry membership
Chapter 2: Literature Review
2.1 What Is Outbound Logistics?
First and foremost, it is important to deduce
the term logistics is largely used to describe
the efficient management of the overall
products flow [17]. These include the supply
chain storage. On the other hand, the term
outbound logistics often used to describe the
processes which involve the movement as
well as the product storage and how they
decisively relate to the gathered information.
This has to be appraised from begin to the
end of the production line and must include
the firm’s customer. The warehouse logistics

in line with the outbound logistics takes a
different aspect. In essence, it has depicted
differences as compared to the inbound
logistics which tend to focuses on the
overall arraigning and purchasing of the
inbound movements. The norm includes the
parts, product, materials as well as finished
inventory drawn from the sophisticated
suppliers and directed to the various
manufacturing plants and warehouses [18].
This section largely depicts profoundly on
both the transportation as well as storage of
the manufactured products. Thus, the figure
below showing the 7 R´s of Logistics
Figure showing the 7 R´s of Logistics [19]
2.1.2 Outbound Logistics Basics
Essentially, the outbound logistics primarily
considered to contain easy concept. The
analogy largely depicts on the two key
aspects which include transportation and
storage. Preferably, the analogy regarding
the storage sections deduce on the utilization
of the warehousing technology in ensuring
that the finished products mainly kept in
the safe conditions and in the manner that
they can easily be accessed if need be in the
process. This is essential because there
could be need to move the product to the
customers at any moment as per the clients’
requests [20]. Notably, it is important to
note that the storage of the products is not
often encouraged since the stored products
do not fetch any revenue in the process.
However, there are situations in which the
norm because essential and this is mostly
during the massive production [21].

On the other hand, transportation is not only
considered as the most complex section but
also the highly occurred part as per the
outbound logistics. Most analysis has
documented that without transport, and then
one can simply deduce that there is overall
logistics. This is because transport helps in
the process of moving the finished products
from the manufactured point to another
place. The process helps one to move the
products not only in the efficient but also in
the most convenient way possible [22].
Alternatively, the past studies have reported
that transportation is a key variable and this
poses the overall fluctuations with time. In
addition to this, it is important to consider
factors such as the delays, transport team as
well as fuel costs change. The analogy
regarding these factors is essential in
ensuring that they do not jeopardize the
movement efficiency of products. For
example, the reported delays in the
shipment of the goods can lead to huge
losses in terms of dollars for the company,
however if there is the one shipment can be
combine with the larger batch, and then this
can result to more efficient process in due
course [23].
2.1.3 Outbound Process
There are different stages which the
organizations or the businesses can go
through in line with the outbound logistics
process. For example, the sales sections tend
to gather the purchase order from the
makeable customer. Thereafter, they
confirm the inventory records in ensuring
that the order has been completed. Then
there is the sending of the order to
warehouse for either picking or packing and
then it is shipped to the overall customers.
This is followed by the billing of the
customer and the cash for the order thereby
collected [24].
2.1.4 Channels of Distribution
Channel distribution is largely considered
when one is working directly with the

clients. The parametric individuals and the
distributors assist in the process of
conveying the services and products to the
overall end user. For example, there are
varieties of dealers which are associated
with the distribution channel. The channels
help in the promotion of the products,
storage, transportation as well as
arrangements. It is also essential to note that
outbound logistics is considered as part and
parcel of the choice which one makes in line
the product promotion. The consideration in
this process is that there should be a good
network for handling the logistics as well as
for catering for the individual customers
[25].
2.1.5 Inventory System
The bid to ensure that there is efficient
outbound process works when the stretch
film and packaging takes into consideration
the working inventory and system. It is
important to note that the overstocking in
line with the inventory can results to the
product obsolesces. If the company fails to
stock enough makeable inventories, then it
can lead to the loss of the customers. It is
important for the companies to try and
balance. They can do this by utilizing the
past inventory entries to enable them to
forecast on the future demands as well as
stay in parametric touch with the distributor.
2.1.6 Delivery Optimization
Optimization in line with the delivery and
shipping is also considered as a vital
outbound logistics component. Thus, the
application of the barcode scanning often
helps in dealing with the inventory tracking
[26]. This will ensure that the client get the
updates regarding the order status.
2.2 Logistics as well as Supply Chain
Management Overview
Essentially, supply chain management or
SCM is regarded to have been introduced in
1980s and it has attracted great and
makeable deals from that time. According to
the supply chain management council, it is

defined as the environment, planning as
well as management of the related activities
which involves not only the procurement
and sourcing but also all the logistics and
conversion[27]. In addition to this, it is
important to note that supply chain
management tends to have major
components which deal with the competitive
strategies and this aims at enhancing the
profitability and the productivity of the
organization. Supply chain management also
comprises of the collaboration and
coordination with the sophisticated channel
partners. The partners may include
suppliers, customers, intermediaries as well
as third party service benefactors [28]. In
the organization context, the term supply
chain is often utilized to refer to the
makeable wide functional range in line with
the areas. The elements considered in the
context may include supply chain
management-related which include
outbound transportation, inbound,
warehousing as well as inventory control.
Further to this, procurement, sourcing as
well as supply management also considered
to be important ingredients which fall under
the described supply chain and umbrella.
Considerably, there are also other
elementary aspects which one may consider
to fall under the concept as well. These
include production planning, forecasting and
scheduling, customer services and order
processing [29]. The analogy also
encompasses all the bodies which works
with the intention of offering the
information system which is often helpful in
the monitoring all the activities in the
process. Thus, one can anticipate that the
supply chain management is the norm which
deals with the all the parametric activities
largely associated with not only the
movement of goods from the amicable raw
material phases but also to the viable end
users. The supply chain in the
manufacturing plants commences with the

sourcing, procuring as well as receiving of
the raw materials. These raw materials often
gathered from the suppliers and thereby
stored in the warehouses. Thereafter, one
has to transport the gathered raw materials
to the processing plant from the warehouse
[30]. On the other hand, the processed
products are also transported once they
packaged to the warehouses for storage. In
addition to this, the finished products can
thereafter be transported to the other
distributors largely termed as the third party
logistics providers. Furthermore, there
different supply chain and processes which
one must consider as far as this evaluation is
concerned [31]. These elements include
inventory management, maintenance
management, quality, scheduling, and
production planning as well as customer
services. Other related supply chain
processes which are also classified at the
norm include order processing, information
systems and purchasing management.
Notably, the information system used in the
process primarily described in terms of the
SAP and the warehouse management
system. However, it is important to note
that the SAP term is utilized in this context
to distribute the flow chain from the
supplying process to the time to the finished
product is gathered as well as distributions
of the goods and the services is effected to
the key distributors. Preferably, the logistic
management is described as the supply chain
functions and governance. The management
processes in line with the logistic activities
typically comprises of the outbound and
inbound transportation management,
warehousing, order fulfillment, material
handling, inventory management, logistics
network design, supply and demand
planning as well as the third party
management of the services providers [32].
2.3 Outbound Logistics Systems
This sections largely discussed in the
various sections as follows

2.3.1 Physical Distribution
The research focuses on the physical
distribution or the outbound logistics and
framework system. First and foremost, the
term physical distribution and management
is applied when dealing with the overall
attempt to systematic approach [33]. Thus,
the outbound or the physical logistic largely
defined as a set of the correlated activities
and these includes transportation,
warehousing, distribution, finished goods,
packaging, inventory levels as well as the
material handling. However, the analogy
also focuses on the efficiency of the
makeable goods distributed with intention of
ensuring that there are minimal defects
reported on the goods as far as the process is
concerned [34]. Thus, the norm of
embarking and focusing on the physical
distribution largely depicts on the norm
which ensure that the finished products are
often distributed in the manner which not
only meets the set criteria but also meets the
expectations of the different clients in the
process. This is often conducted with the
key concept that the overall cost is set at the
lowest level possible.
Other than the transportation, the physical
distribution and management of the goods
largely involves the close interaction and
liaison with the overall production planning,
order processing, purchasing, warehousing
as well as controlling of the material.
Notably, it is important to control and
monitor all these elements with the aim of
ensuring that services offered meets the
customers’ demands but at the same time the
lowest costs are maintained in the company
in terms of the overall production [35].
2.3.2 Transportation
In essence, it is important to deduce that
transportation involves the physical
movement of goods from manufacturing
plant to the places where products are
needed in the long run. Considerably, the
movement of the goods helps in increasing

the overall product values and the movement
largely cut across the distance and space.
Thus, the notion regarding the concept can
be referred as the place utility. In addition to
this, it is also important to anticipate that
transportation also plays a fundamental role
in the time utility. In essence, the norm helps
in determining the speed and the consistence
with which the products can be moved from
one place to another. Preferably, there is the
notion that the transportation network can be
deduced as the nods collection as well as
links. This because it originates while at the
same time it ends at the overall nodes [36].
The norm also is considered to travels on the
sophisticated links. Furthermore, most of the
transportation modes often depicts on the
infrastructure concept. In fact, there is
overwhelming demands and needs for the
infrastructure to facilitate different
transportation modes such as the ports,
roads, airports as well as waterways. These
elements form the essential modes of
transporting the good across the world.
Thus, it is fundamental for one to manage
the infrastructures in manner that there will
be funds availability to facilitate the
investment as well as maintenance in the
long run [37]. Extensively, transportation is
one of the major areas which one needs to
consider when dealing with the logistics due
the impacts which it has on the cost structure
and customer service level. Thus, it is
important to deduce that transport often
involves the distance coverage and the
changing of the location in line with the
transportation of the cargo. Conversely, it is
important to draw the distinction between
the external and the internal transport. For
example, internal transport involves the one
line production either in the company or at
different warehousing departments. On the
other hand, external transport entails the
shipment of goods to the customers from the
suppliers. This norm has to take place
between warehouses or different factories.

Moreover, the external transport comprises
of the cargo and it involves both the
transport as well as the transport process.
2.4 Warehousing Concept
Warehousing is considered to be an
important and integral sections plays a
fundamental logistics system. Deludingly, it
is important to note that the warehouse
facilities in the world are at least one million
in number. These include art state,
professionally managed warehouse, garages,
company stockrooms, garden sheds as well
as self-store facilities. In essence, the
warehousing often plays a parametric role in
ensuring that they help in the provision of
desired customer level as well as services.
The services should be provided at the
makeable lowest and possible total cost.
Subsequently, it has been note that that there
is the important link which exists between
the warehousing activities as far as the
customers and the producers are concerned.
Over the past decades, there has been
increased growth in the warehousing aspects
[38]. The growth has been depicted from the
relatively minor firm facet and logistics
system to the ones which are presently
considered as the important function. There
are different definitions which have been
utilized when describing the warehousing
system. For instance, it could be defined as
the firms’ logistics part and system which is
used when storing the products. The
products stored in the system can vary from
the raw materials, parts, products in progress
as well as finished merchandises. The
warehousing system can be also utilized to
provide the link between the consumption
and original point as well as assisting in the
provision of the status information to the
various management organs [39].
Further to this, warehouse also helps in the
redirection of the goods from one route to
other. However, the process must be
conducted with the stipulated network.
Notably, the redirection of goods can be

conducted even when one does not need to
store the goods in the process. Thus, there
are different designs in line with the
warehouse which have been put in place to
support these utilities. However, it is
important to deduce that the vital role of the
warehouse is to help in the movement,
storage as well as information transfer [40].
Considerably, it is important to focus on the
acceptable level as well as product flow
between the customers and the producers as
this tends to help in ensuring the designed
warehouse meets the local demands while at
the same time holding the inventory levels
stipulated in the process. Largely,
warehouse is regarded as hub in the refined
logistics network. In essence, such hubs
helps in the provision of the place for storing
goods temporarily as well as offers a
systematic approach which one can apply
when rerouting the goods to a different
network channel. If possible, it is important
to draw the distinction among the supply,
handling as well as distribution warehouses
[41].
Nonetheless, there are situations in which
the mixed warehouse forms can also be
used. Supply warehouses are typically
defined as the part of the overall production
operations and they often used when storing
the raw materials, other resources as well as
for auxiliary supplies. The supply
warehouses are essential for both the
production and the semi-finished products
storage. They are also important and largely
used when storing the finished products for
specified seasons. On the other hand, the
transshipment warehouses used for housing
the products for a short duration and
thereafter, the goods are transferred to the
other transportation modes. The
transshipment warehouses, in most cases are
managed by the retail companies and the
logistic providers. In essence, the
application of the cross-docking helps the
manufacturers to send the merchandises to

particular retails and outlets [42]. These
goods largely regarded as pre-picked and
they are directed to specified retailer
warehouses. From this point, there is the
batching of the goods and the delivery to the
various retail outlets from the innumerable
manufacturers. Subsequently, it is important
to note that there is the change of the goods
flows in line with the compositions as peer
the manifestations reported in the
distribution warehouse. Further to this, it
also viable to anticipate that the distribution
warehouse are often classified into various
subsections. These subsections include local,
central as well as regional distribution
warehouses. The classifications largely
depend on the area which the norm serves in
the long run. On the contrary, most of the
central distribution warehouses are often
defined and described as the central
warehouses, whereas the local and
decentralized distribution warehouse are
referred to as the delivery and supply
warehouses. Supply warehouses deals with
the collection and distribution of goods from
different suppliers to either one or more
retail operations and production [43].
On the other hand, delivery warehouses
entail the storage of the manufactured
products before they are delivered to the
different customers in the process.
Moreover, there could be the storage of the
thousands of the products in not only
different forms but also in different types.
The norm could also include the
simultaneously storage of the products in the
overall same warehouse. The optimal usage
of the space and the specific item retrieval
needs thoughtful understanding and well-
coordinated organization. This will form the
essential and efficient way of managing the
warehouses. Preferably, there are two key
ways of organizing the storage space. These
include fixed storage space as well as
completely random or free space allocation
[44].

2.5 Logistics Outsourcing
From the analysis off 1980s, it is evidential
that most of the companies could not
conduct their operations by themselves
while at the same time remaining
competitive in the market. Thus, they
embark on recruiting and outsourcing the
expertise to help them in carrying out their
core competency. This notion is largely
defined as process of hiring an outside firm
to help in the provision of good services to
the company [45]. These services often
considered to have been conducted by the
company itself in the prior days. However,
the firm opts to give the third party the
opportunity to assist it because of the
competency and the skills which it has in the
long run. Thus, outsourcing could be
defined as the process off subcontracting the
noncore functions of the company to the
third-party firm. Some of the functions
which the hired companies work on include
product design [46].
These activities often involve two key
parties. The clients company often has the
mandate of outsourcing for the logistics
activities as well as helping in the
outsourcing of the service providers to help
in offering better and quality services. The
decision regarding the outsourcing largely
aims at ensuring that there is the lowering
of costs in the firms as well as in conserving
energy which has been directed towards the
makeable firm core functions. The norm
also aims at ensuring that there is effective
management of the labor use, technology as
well as resources. Preferably, different
studies have deduce that the concept of the
outsourcing have continued to depict
growing interests and demands from the
analysis documented since 1990s [47]
It is also important to note the process often
involves the utilization of the public, third
party warehouse and contact transportation
carriers. Outsourcing also offers the
decisive opportunity for the firm to be use

the best third party logistics to be able to
offer the services with the aim of meeting
the needs of the organization. The effective
application of outsourcing becomes more
evidential and particularly when the
companies begin the process of looking at it
critically in terms of the resources and the
internal structures put in place. Also, the
processes help the firms to develop the
flexible capacities which in turns play a vital
role in the purchasing of the new and rapid
development and technologies. In essence,
the outsourcing logistics activities are
essential since it helps different firms to
save on the overall capital investment as
well as assisting in reducing the financial
risks in the process [48].
However, it is important to note that the
logistic assets investments often requires
large and lump sum and thus, associated
with high financial risks in the process.
These logistic assets investments include
information networks and physical
distribution centers.
2.6 Opportunities and Challenges of the
Brewery Manufacturing Outbound
Logistics
Modern technology plays an essential role
on trying to overcome the problems
associated with the logistics. The expansion
of the industries largely results from the
overall consolidation as well as the bogging
of the distribution systems. This can
increase the daily operations while at the
same time resulting in the production of
more products which in turn leads to the
ineffective management of the
manufacturing plant [49]. Thus, there are
different problems which can crop in as far
as the process is concerned and these
challenges largely outlined as follows
 There is the difficulty in trying to
load all the tracks on time on a daily
basis.

 The process of finding the willing
drivers to assist in the handling of
products as well as dealing with the
customers’ demands becomes
difficult.
 There is the problem associated with
the technology employment given to
both the distribution system and the
sales in trying to attain the
competitive edge.
 Also, the expansion of the territories
results to the increased drive times
while at the same time reducing the
delivery capacities of the drivers.
Thus, most of the wholesalers are presently
adding more routes with the aim of covering
for the longer miles. For instance, the
brewery industry could benefit not only
from other food but also from direct store
and delivery industries. However, this is
only possible when they adopt the system
from the companies which have already had
geographic expansion, experienced
consolidation as well as SKU explosions
[50]. In addition to this, also the companies
must also have figured out and appraised the
various mechanism of dealing with the
effective ways of gathering products to the
retails. The process of getting the products
should be conducted in a manner that offers
high quality retentive of both the products
and services. Most companies have
embarked on the utilization of more
innovative schedules rather than focusing on
the average Monday-through-Friday sales as
well as delivery schedules. This process
aims at improving the customer service,
reducing the distribution cots as well as
hastening the overall logistics costs. The
innovation analogies applied in the process
largely focuses on following
 Ensuring that there a 24-hour
expansion on the order cycles.
 Application of the merchandisers to
help in dealing with the inventories

as well as writing of the large bulk
stop orders [51].
Notably, it is important for the distributors
to consider the considerable use of the route
management and technology to conduct the
control driver-retailer relationship
consistency. The careful selection of the
route-management technology also aims at
ensuring that there is the squeezing of the
unnecessary wasted in line with the capacity
which is often depicted out of the makeable
route distribution and system. The norm also
ensures that all sales representatives are in a
position to account and adhere to the well-
structure client service schedules. Moreover,
it is worth to articulate that the consolidation
will offer the decisive opportunity of
increasing the services in line with the
geographical area which is often serviced by
the individual warehouse systems [52].
Further to this, it important to ensure that
brewery industry contributes to the overall
logistics in terms of cost saving by carrying
out the following
 Centralizing the parametric inventory in the
different locations while at the same time
reducing the investments associated with the
inventory, freshness quality and stocks-out
quality problems.
 Reducing the overall delivery
associated with the long-haul time
for different drivers.
 Preferably, the process will ensure
that there are increased hours, and
thus, increasing the capacity of the
drivers in the market to be able to
make the decisive additional stop.
In addition to this, there could be the
application of the cross-docking and pro-
picked side in line with the bay loads and
this should be conducted from the
centralized warehouse. Thereafter, the
products can be transported and shuttling of
the products carried out via the double-
bottom [53].

2.7 Warehousing Management Key
Indicators of Efficient
Preferably, it is important that there is the
need to have the operating figures when
carrying out the evaluation of the
effectiveness and the efficiency of the
warehouse. This process should include the
utilization of both the movement processes
and capacity application in line with the
quantitative indicators. Also, the
expenditures are also considerable aspects
which one must include in the process [54].
Some of the elements associated with the
expenditures which one must consider
include equipment, capital cost as well as
payroll. The tasks performed in line with the
process should be divided into two key
groups. This should include time-bridging
processes conducted when the overall goods
are often stored as well as the overall
movements processes conducted in line with
the storage. The analogy should be depicted
in the systematic approach as the key
indictors to assist in determination of the
effectiveness as well as efficiency. Thus, the
resulting efficiency should include storage
capacity, available storage numbers and
stock movement numbers. On the other
hand, the input side should be appraised in a
manner that it is matched by the overall
performance measures of the sophisticated
warehousing costs. However, this costs need
to be divided into either operating costs or
personnel costs.
2.7.1 Supply Chain Operations Reference
Model (SCOR Model)
The SCOR model was developed by the
supply council and this norm is largely
considered and utilized when conducting the
performance requirements in line with the
supply chain in the partner firms [55]. The
role of the SCOR-model is to assist in
describing the overall business activities
often associated with overall customers
demand and satisfactory phases. The model
is largely considered to comprise of five

different sections. The sections mainly
include plan, source, deliver, make as well
as return elements in line with the
management processes. Conversely, it is
essential to report that the individual
sections and components depict their own
components in line with the measurement
criteria. They are defined as reliability,
flexibility, costs as well as assets [56]. Thus,
model often considered to have reported
successful results regarding the description
and the provision of the essential supply
chain needed to improve the overall global
projects and site-specific projects. Notably,
the SCOR model mostly developed to help
with aim of helping to monitor the various
changes in the manufacturing processes. The
model has immense application as far as the
measuring of the supply chain in line with
the outbound context performance is
concerned. This is deduced when dealing
with the transportation and warehousing in
the outbound logistics services.
Furthermore, one can deduce that there is no
clear research which has clarified the
logistics performance and measurements in
the industry as per the logistics aspect.
2.8 Logistic Problems
There are different problems associated with
the outbound logistics. This is illustrated as
shown in the figure below
Figure showing the logistic problem [57]
Chapter 3: Research Methodology
3.1 Introduction
The understanding of the correct
methodological apparatuses in relation to the
research is very important in developing
accurate research. The research
methodology normally helps in
understanding the technique to do the

research in the most appropriate way. This is
a systematic procedure where different types
of relating concepts are properly related to
the research study. It extant section includes
the research approach, research philosophy
as well as the research design. In addition to
this, the data analysis process as well as the
data collection is explained within the
research. It is therefore important to note
that ethical consideration for the purposes of
this research during the research conduction
is also discussed in the present section of the
research. It is therefore important to note
that defining research issue is also an
important exercise [58].
3.2 Method overview
The table above represents a method
outline in relation to the research [59]
3.3 Research Philosophy
Post-positivism, realism as well as the
positivism philosophies are among the three
types as far as the research methodology is
concerned. The positivism philosophy
normally ensures that the data in question is
very legitimate as well as perfectly correct.
It is normally employed as well as preferred
where the data that relates with the
phenomena is supposed to be collected as

well as being analyzed. However, in such
case the concept of the knowledge
sometimes appears like philosophical due to
its involvement in the part of knowledge
development as well as the capacity to fully
cover the questions in the research as well as
the re-joinders [60].
Positivism philosophy was considered as the
suitable one as far as this research is
concerned. This is because the search
involved the analysis of the third party
logistics and their importance as far as the
manufacturing industry is concerned. The
process of selecting which research
philosophy is most suitable normally
impacts on possible associations. In addition
to this, the critical philosophical variations
usually exist in the research that heavily
focuses on facts as well as examining the
phenomenal importance as well. On the
other hand, the improvement in relation to
the research employment has also been
shown in more practical manner. The
research in question doesn’t buy into the
humanistic qualitative technique hence the
interpretivisim philosophy is not suitable in
relation to this research [61]. The research is
grounded measurable observation as well as
ensuring numerical examination that if
found in the research.
3.4 Research Approach
The research approach is very vital as far as
the research is concerned. The research
approach normally ensures that the suitable
presentation of the research that is as well
important for the researching purposes. This
process the most right research topic is
selected because it part of the most
important research body. The research
information as well as its conduction is also
captured and represented here. Deductive
approach as well as the inductive approach
is types of research approach and for the
purposes of this work it was treated as the
most suitable hence used in the research.
The inductive approach always include the

development of models as well as the
theories through which the data analysis of
the existing data in relation with the topic of
the study. It is important to note that the
deductive approach usually deliberates as
well as analyze the already existing models
as well as theories that are associated with
the subject [63].
3.5 Research Design
Research design normally has a very
important part as far as the research is
concerned. The research design always
follows the examined issues which are
seemingly in consisted with the third party
logistics in relation to the manufacturing
industry. However, the correlation research
design was not encouraged in this research
the reason being that the research did not
work in relation the case-control study as it
normally concerned. In addition to this, the
use of semi-experimental research proposal
has always been discouraged in relation to
the research conducted currently. The reason
why it is being rejected currently in research
is because of its inability to accommodate
the much needed field experiment. It is
important to note that the research design
has presented the opportunity for the people
doing the research work to do the different
explanation in relation to factors that are
associated with the research topic.
3.6 Data Collection Process
The data collection techniques are important
since it will help the research in gathering
the overall data needed for this research. In
essence, both the primary and the secondary
methods are applied when collecting the
data for this study. The secondary data in
this process largely depicts on the outbound
logistics in line with the research. Data is
often helpful when coming up the research
topic for the study. Considerably, it helps in
the extraction of the materials which are
needed when collecting the raw data as well
as directly when dealing with the demands.
Most of the secondary data largely gathered

from the different sources such as peer-
reviewed journals [64].
3.7 Data analysis process
The qualitative data analysis approach is a
vital element which was utilized in this
research. The concept helps in the
documentation of that narrative data form.
Besides, it also helps in provision of the
theoretical aspect which gives the in-depth
analysis on the topic.
3.8 Sample and sampling
There are various sampling methods which
one can apply for this study. The sampling
techniques include both the probability and
non-probability simple and random
sampling approaches. The deployment of the
sampling technique is not only important but
also essential. For this research, the use of
the random probability is often justifiable
and viable as per the study. Thus, method
has played an essential role in selecting the
makeable secondary source to be used in the
overall research.
3.9 Ethical consideration
The collection of the data for the described
research is essential when a certain criteria
is used when set for the procedures for the
research. In essence, it is important for the
individual conducting the study to ensure
that the set procedure complies with the
ethical requirements and recommendations
needed for the process. Thus, after the
completion of the overall data collection
process, then it will be viable and
fundamental to provide proper and decisive
ethical method. However, it will be
important for one to ensure that the data
collected for this process is not only
accurate but also drawn from the
authenticated sources.
3.10 Timeline
The time line used for this research largely
tabulated and summarized as indicated in the
appendix
3.11 Summary
The section comprises of the different

research tools as the overall process is
justifiable. The selection of the method will
not only be helpful but also important when
conducting the research to ensure that it is
appropriate to the course. Subsequently, it is
fundamental in ensuring that one defends to
the scientific approach which has been
selected for the study.in this way, one can be
able to establish the research gap in the
process. Further to this, the norm also will
help in developing the research
methodology by ensuring that the data
collection approach is appropriate in the
long run.
Chapter 4: Data Analysis
4.1 Introduction
This chapter of research shows a data
analysis in relation to the importance of the
third part logistics as far as the
manufacturing company is concerned. The
qualitative technique has been employed in
data analysis on the research that was done.
This method was very effective since it
helps in the information quality
improvement as well as produces
dispensation of the conclusion as far as this
study was concerned. In addition to this, the
data analysis assists in the exploration of the
research done. In regards to the data
extracted from the secondary sources
different information has been acquired that
are very important as far as this research is
concerned. It will be very resourceful to find
out the importance of a third party logistics
on the manufacturing industry [65].
4.2 Qualitative Analysis
The persons that were targeted for the
purposes of these study comprises the
logistics, manager officers within the
production department, assistant managers,
the procurement departments as well as the
finance department within the organization.
The technique employed in sampling for the
targeted population was convenience as well
as the purposive methods. It is important to
note that, there was no much information or

qualification needed for the selected persons
except but a few; the persons whose
information was important included the head
of the departments, managers as well as the
assistant managers and the junior staff
within the company. The obtaining of data
that was used for the study purposes was
done through the questioners, interviews and
lastly from the secondary sources such as
the journal, the country departmental
reports, and internet as well as the books
[65]. The interviews as well as the
questionnaires were carefully created in line
with the defined objectives. These were
served as the primary tools for the purposes
of collecting the required data. The main
data were acquired through the employment
of personal observation, questionnaires as
well as the interviews with the
administrations of the four identified
departments within the state as well as the
logistic providers who were treated as the
third party in order to do a successful data
collection. The self-administered
questionnaire technique was selected for the
data collection due to its suitability as far as
this exercise was concerned. This method
was very useful in collecting the information
in relation to the state departmental
performance with respect to the outbound
logistics [66]. The engagement of the third
party logistics as well as their services
played an important role in ensuring that the
data collected was valid and resourceful at
the same time. The structure of the
questionnaire was developed in a manner
that it enriched with both the closed as well
as the opened questions. Through this
structuring, the data collection was able to
focus mainly on the evaluation of the
outbound logistics within the organization
departmental as well as the possibility of the
improving its values. All the items that
were measurable in relation to the supply
chain performance, for the purposes of
evaluating the outbound logistics within the

organization department were included
within the questionnaire as well as assessed
on the five idea rating scale [67]. The scale
rating were done such as; point 1-more
poorer as compared to the previous, 2-
poorer as compared to the previous, 3-same
with the previous, 4-improved as compared
to the previous as well as point 5- much
improved as compared to the previous. Fast
the questionnaire were properly tested as
well as modified to ensure that it fit and
serve the intended purpose. It is after this
point that they were sent for the data
collection. The collection of data was done
in all the identified departments within the
organization. The all collection of data was
cross-sectional and it took at least ten
working days for this exercise to be
completed. The studied data was collected in
February the year 2019.
4.3 Result and Discussion
It was discovered that the organization in
relation to their implementation of service
efficiency in regard to the perfect order
fulfillment, their current outbound logistics
is far much better as opposed to the previous
arrangements. In relation to the DHL, it was
confirmed that their order fulfillment is
poorer experienced within the organization.
The service competency in relation to a
complete order distribution within the
organization in relation to the study that was
done, it was discovered that is has very little
improvement. In addition to this, the service
efficiency in relation to the delivery
performance to the company customer
commits dates showed that the outbound
logistics activities have negative effects as
far as this factor is concerned [67]. The
bigger percentage of the counted
respondents indicated that the delivery as far
as the conditions are concerned was in
perfect states prior to as well as after the
implementation of the outbound logistics.
Nevertheless, a smaller percentage of the
enumerated respondents give an opposing

opinion in relation to the delivery condition
with the implementation. They indicated that
the outbound logistics implementation have
an improvement effect as far as the delivery
conditions is concerned in regard to the
states of the items. The implementation of
the outbound logistics has also improved the
documentary accuracy within the company.
The study of documentations was carried out
in relation to the reliability in regards to the
service effectiveness. It is therefore
important to note that, the reliability of
service usefulness in the company within
their relationship in relation to the outbound
logistic reasonably outstanding. In order to
make their operations more effective, much
improved as well as reliable, the
communication links should be strengthened
as well as properly facilitated among the
departments that are available in the
company [68].
The result from the study conducted showed
that the company in order to successfully
implement the responsive service efficiency
as far as the delivery is concerned, it must
fulfill the time cycle as well as ensuring that
the outbound logistics that is produced
match the previous operations. In addition to
this, the responsive service effectiveness in
regards with the service operations as far as
the time cycle is concerned within the
organization is maintained as in the case of
the previous operations. The respondents
gave the same responsive especially when
they were asked on the responsive service
usefulness in relation to the picking of the
product cycle time. In addition to this, in
regard with the reduction of the order
management prices, the service
effectiveness was not receptive according to
the respondents. They went on to clarify that
the company’s relation to DHL is even
poorer as compared to the operations before
the implementation. It is also important to
understand that the responsive service
effectiveness was observed through the

order delivery prices as a metric. This was
done in order to see the possibility of
reducing the organization’s outbound
logistics operation with regard to the DHL.
However, the study that was done confirmed
that this was even poorer as opposed to the
previous operations.
The study also confirmed that the decrease
as far as the order management costs are
concerned is poorer as opposed to the
previous operations. The order delivery
prices reduction was similar with the
previous operations. In addition to this, the
cost reduction under the similar context in
relation to the equipment, raw material as
well as the manpower at the company shows
a more rising trend as compared to the
previous arrangements. The majority of the
respondents were of the view that the
reduction on the warehouse costs was much
poorer as opposed to the previous
operations. Nevertheless, a small percentage
holds different opinion from that aspect.
They indicated that it was much better as
compared to the previous operations. The
study conducted showed that the cost
reduction as far as the logistics management
cost is concerned with the outbound logistics
operation indicated a similar result as
compared to the previous engagements. It is
important to note that the reduction as far as
the transportation cost is concerned was
similar with the previous operation. It was
also confirmed from the study done that, the
improvement as far as cash to cash cycle
time is concerned is similar to with the
previous operations with the DHL. This
simply means that the cash to cash cycle
time within the company outbound logistics
in relation to the DHL has very little to
shows in terms of change therefore, there is
need to put in place some effective measures
in order to improve the this performance
[68]. With regard to the enhancement within
the utilization of facilities rate, manpower as
well as the equipment the study conducted

showed that this was the same as compared
to the previous operations. Similarly, the
reduction in cost in relation to the labor,
equipment as well as the facility at the
company as far as the study is concerned; it
is the same with the previous commitments.
The majority of the respondents hold on the
view that the enhancement as far as the net
asset profits is concerned was the same as
the previous operations. Therefore, this new
implementation according to the study
conducted has not improved the net asset
return in reasonable manner. If there is any
improvement in relation to this matter with
regard to the implementation therefore it is
in small percentage [69].
The inquiry in relation to the enhancement
on inventory durations in regard with the
finished good supplies showed that the
outbound logistics operations have either
remained similar or improved the operations
as compared to the previous engagements.
As far the excess manufacturing
improvement is concerned, the study
indicated through the respondents that it was
either the same or in few circumstances
much worse as compared to the previous
operations. Lastly, regarding the asset
measurement operational effectiveness in
relation to the major suppliers of the
company in terms of the development on the
faulty inventory was in most cases the
similar to the previous operations as
indicated a larger percentage of the
respondents.
Gratification indicates that the extent of a
third party logistics organizations in relation
to the expectation fulfillments have very
little effect on improvement as compared to
the previous operations. This indicates that
the company has so much work to do so as
to improve on the effectiveness of
relationship with regard to the third party
logistics in order to ensure that all the
involved parties are fully satisfied as far as
their operations are concerned. In addition to

this, in regard with the extent of satisfaction
in relation to the third party logistics firms in
total there a line of division in the
respondents’ opinion [70]. Nearly a half of
them indicated that there was no effect or
the change as compared to the previous
operations while the other half of the
respondents indicated that the new
implementation has come with more
satisfaction as opposed to the previous
operations. It is important therefore to note
that, the company should strength an
excellence relationship that exists between
the DHL other involved third party logistics
firm.
Chapter 5 Conclusion and
Recommendations
5.1 Conclusion
The analogy regarding the outbound
logistics and performances largely
considered in the processes revealed that
they not only require the evaluation but also
decisive assessment models. This is
important for improving the various
opportunities associated with the
performances of the analyzed organization.
Thus, it shows that the third party logistics
company can help and support the different
outbound logistics of the overall
manufacturing firms. They typical help these
firms in ensuring that they not only achieve
the performance in efficient manner but also
in effective way. The study also
encompassed on analyzing how the third
party logistics firm tend to help the
manufacturing company in reducing the
costs associated goods. Further to this, the
study also appraised whether or it was
effective and economical to hire a third
party logistics to conduct the activities on
behalf of the firm. Also, there was the
appraisal on the recommendations regarding
the guide in line with the appointment and
the choice of the overall third party logistics.
Most there was the use of the self-
administered questionnaire as the key note

data collection method. Moreover, the data
gathered thereby analyzed via the use of the
supply chain operation reference or SCOR.
The analysis largely grounded on the
reduction of the order management cost and
the service efficiency denoted by the
response gathered from the process.
5.2 Recommendations
There are various recommendations which
one can deduce from this study. This
includes the various problems which the
outbound logistics may have as far as the
implementation process is concerned. The
recommendations largely outlined as follows
 Ensuring that there is proper chain for the
selection of the experts to handle the
functions and the core competency roles on
behalf of the company.
 Time is also a factor which must be
considered to ensure that there is no delay as
this can lead to huge losses as well as losing
of the clients.
 There is need for one to completely
understand the system to avoid the mistakes
which may result from the process.
5.3 Limitations and Future Study
There are various factors which are often
related to the concept of the outbound
logistics. This research has however, not
covered all the elements as per the present
studies. Thus, it will be important to conduct
the future studies on the levels of the overall
success regarding the concept of the
outbound logistics in line with the
manufacturing and warehousing. The
research will help in gaining the in-depth
understanding into the topic by exploring the
importance which the outbound logistics
have and thus, making one to understand the
topic much better. The analogy will also
help in establishing the procedures regarding
the restrictions and how one can handle such
as far as the curbing and the encountering of
the norms is concerned. Further to this, time
and budget constraints are also essential

limitations which one must include in this
appraisal. In essence, inadequate funds
should be enhanced via the application and
utilization of the better tools in the process.
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