Dissertation: Effect of 3PL Outsourcing on FMCG Company Performance

This dissertation investigates the effect of Third-Party Logistics (3PL) outsourcing on the performance of FMCG companies, with a specific focus on Kerry Group plc. The study begins with an introduction to 3PL outsourcing, its benefits, and its increasing adoption by companies to enhance supply chain management and gain a competitive advantage. The dissertation outlines the aim and objectives, research questions, rationale, and significance of the study, as well as the chapter structure. The literature review explores outbound and inbound logistics, the factors driving 3PL outsourcing, its impact on FMCG companies, and the issues that affect the working environment and employee performance. The research methodology chapter details the research philosophy, design, approach, strategy, data collection methods, sampling, instruments, data analysis techniques, ethical considerations, and limitations of the study. The data analysis chapter presents the findings, while the conclusion and recommendations chapter summarizes the key insights and suggests strategies to resolve issues in 3PL outsourcing for the betterment of employee performance. The study aims to identify the advantages of 3PL outsourcing that influence employee performance and provides a comprehensive analysis of the topic, including factors behind 3PL outsourcing, impact on FMCG companies, and issues affecting the working environment and employee performance, concluding with recommendations for improvement.

DISSERTATION
(Effect of 3PL outsourcing on the performance of FMCG company)

ABSTRACT
Third party logistic is the dynamic business function that assets the firms in getting
adequate time to concentrate more on their core business functions. Outsourcing partners are the
market experts and have good experience in the relevant field. They support the firms in
managing their flow of goods and services activities effectively. The paper revels impact of 3PL
outsourcing on business performance. Furthermore, study describes issues that are faced by
FMCG companies in implementing these outsourcing practices in the business unit. Current
paper discusses advantage of using third party logistic outsourcing practices for the companies.

ACKNOWLEDGEMENT
I would like to thank my professor for support, encouragement and invaluable guidance. I am
grateful to my friends and peer group those who have helped me in conducting this research.
Without their moral support I could not be able to finish this thesis on time.
My special thanks to my family, my parents for their support and motivations throughout the
whole process in this research.
2

DECLARATION
This dissertation has been prepared by myself, it is my original work. The work has been
completed under guidance of professor. This is my original work and it has not been published
anywhere.
Date Candidate signature
3

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
Background of the study .......................................................................................................1
Aim and objectives ................................................................................................................3
Research Questions................................................................................................................3
Rationale of the study.............................................................................................................3
Significance of the study........................................................................................................4
Chapter structure....................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
Introduction............................................................................................................................6
Outbound and inbound logistics flow and conceptual framework of 3PL outsourcing.........6
Factors behind 3PL outsourcing.............................................................................................9
Impact of 3PL outsourcing on FMCG Company.................................................................11
Issues of 3PL outsourcing that affects the working environment and employee performance of
the company..........................................................................................................................13
Summary...............................................................................................................................15
CHAPTER 3: RESEARCH METHODOLOGY ..........................................................................15
Introduction..........................................................................................................................15
Research Philosophy............................................................................................................16
Research design....................................................................................................................17
Research approach................................................................................................................17
Research strategy..................................................................................................................18
Data Collection.....................................................................................................................19
Sampling...............................................................................................................................20
Research instruments............................................................................................................21
Data Analyses.......................................................................................................................22
Ethical consideration............................................................................................................22
Validity and reliability..........................................................................................................23
Research limitations.............................................................................................................23
CHAPTER 4: DATA ANALYSES ..............................................................................................24
Introduction..........................................................................................................................24

Data analysis.........................................................................................................................24
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS ..................................................40
Conclusion............................................................................................................................40
Recommendation..................................................................................................................42
REFERENCES..............................................................................................................................43
APPENDIX....................................................................................................................................47

CHAPTER 1: INTRODUCTION
Background of the study
Logistics outsourcing is the concept that came into existence in 1980 with the purpose to
improve Supply Chain Management (SCM) of companies. Third Party Logistics (3PL) is related
with logistics and SCM activities in which firms take support of third party business in order to
distribute their products and services to consumers. 3PL companies work in a direction so that
logistics operations of other firms can be managed effectively. 3PL providers are specialised in
warehousing, transportation and packaging (What is third party logistics (3PL), 2017). In the
modern competitive environment, firms are more aware with the fact that they are required to
adopt third party logistics outsourcing services for gaining competitive advantage and enhancing
their economic values. This is the model that supports in paying more attention on core business
activities (Singh, Gunasekaran and Kumar, 2017). It assists in managing all resources well and
concentrating on key areas so that business can get developed soon. This is the beneficial tool
that helps in managing operations, warehousing and order processing so that company can
generate more sales and more revenues as well. 3PL outsourcing is the method through which
companies can pay more focus on growth of the business rather than handling their daily supply
chain issues (What Is Outbound Logistics?, 2015). This supports the corporations in reducing
administration expenditures to great extent.
SCM is considered as one of the most important part of business unit that helps in smooth
flow of goods and services. In the recent time, companies are taking support of logistics
outsourcing methods in which they involve external partners in operations those which can
manage their supply chain well (El Meladi, Glavee-Geo and Buvik, 2017). Traditionally, these
activities were managed by internal staff members but as it is time consuming process, thus, now
these entities are taking assistance of outside partners to manage their supply chain logistics
(Impact of logistics outsourcing on the profitability of food processing industries, 2012). This
process assists in improving logistics expertise and optimisation of resources so that entity can
run its operations smoothly. It is the best tool that aids the firm in implementing the best
practices and setting up of benchmarking. Furthermore, it helps in material flow optimisation and
enhancing productivity of the corporation (Payaro and Papa, 2017).
1

There are many companies those which are operating their business globally; they aim to
enhance supply chain visibility and reduce their risk. This has become possible by implementing
3PL outsourcing methods. Past records show that many of the FMCG companies of Ireland have
adopted 3PL outsourcing methodology that has given them 5-8% growth annually.
Approximately, two- third companies of Ireland are dependent upon the third party logistics
services (The Impact of Strategic Outsourcing on Organizational Performance: A Case Study of
Bidco Africa Limited, 2016). In the recent times, many large multinational firms are providing
supply chain solutions to these FMCG companies across the world. It involves multiple bundled
services such as transportation, warehousing, inventory management, distribution, installation,
packaging, labelling, after sales services etc. many managers of the firm believe that outsourcing
is the only way through which they can maintain competition and gain advantage. In the recent
time, frequently changing demand of consumers and changing market conditions have forced
organisation to improve their operations (Patil and Wongsurawat, 2015). 3PL outsourcing re-
engineered process is the best tool through which companies can satisfy needs of consumers and
can enhance revenues as well.
There are many reasons of applying outsource logistics operational services. One of the
major reasons of implementing this method is that companies get sufficient free time after that
and they become able to focus more on critical operations of entity (Samgam and Shee, 2017).
These 3PL outsourcing firms are specialised in this field thus, they are able to manage these
activities well. So, entity gets more time to pay attention on core business activities. With the
help of this, back office work load has been reduced to great extent and now, employees are able
to perform their real work effectively (Rita and Krapfel, 2015). External suppliers have more
knowledge about this field and they have better understanding about domain as well. Thus, they
can adopt innovative ideas and strategies for providing satisfactory services to consumers, this
enhances satisfaction level of consumers. It aids company in growing well and sustaining in the
market for longer duration (Verma, Koul and Pai, 2016).
Current study is based on Kerry Group plc, it is Ireland based firm that operates its
business in the food industry. It offers food ingredients, cheese snacks and ready meal to
consumers. In the year 2015, revenues generated by the company were 6.104 billion and
operating income of the company was 662.7 million. It has employed 24000 employees
worldwide. Present dissertation will discuss the effect of 3PL outsourcing on performance of
2

FMCG companies in Ireland. It will describe vulnerability in firm outbound and inbound
logistics flow (Yoon, Yildiz and Talluri, 2016). Furthermore, it will identify the factors behind
3PL outsourcing and will explain issues of 3PL outsourcing that affects the working environment
and employee performance of the company. In addition, several strategies will be recommended
to resolve the issues in 3PL outsourcing for the betterment of employee performance of FMCG
Company.
Aim and objectives
Aim
“To identify advantages of 3PL outsourcing that influence employees towards their performance
for improving growth of FMCG: A study on Kerry Group plc”
Objectives
 To construct vulnerability in firm outbound and inbound logistics flow
 To identify the factors behind 3PL outsourcing
 To highlight the impact of 3PL outsourcing on FMCG company
 To find out the issues of 3PL outsourcing that affects the working environment and
employee performance of the company
 To recommend strategies to resolve the issues in 3PL outsourcing for the betterment of
employee performance of FMCG company
Research Questions
11 What is the structure of vulnerability in firm outbound and inbound logistics flow?11 Which are the factors behind 3PL outsourcing?11 What is the impact of 3PL outsourcing on FMCG Company?11 What are issues of 3PL outsourcing that affect the working environment and employee
performance of the company?11 Which are the recommended strategies to resolve the issues in 3PL outsourcing for the
betterment of employee performance of FMCG Company?
Rationale of the study
Impact of 3PL outsourcing on business performance topic has been provided by
university thus researcher has conducted the investigation on the same topic. The main reason of
conducting dissertation on the topic is that Kerry group Plc is recently facing issues of
decreasing sales and its consumers are not satisfied with the products' delivery and services of
3

the company. FMCG Company currently is not able to access third party outsourcing method
effectively in the workplace (Daugherty, Bolumole and Schwieterman, 2017). Kerry group is
unable to maintain its structure due to which its performance is affecting badly. In such
condition, cited firm is facing huge trouble and it is unable to sustain in the market for longer
duration. This is the common issue which is faced by many other manufacture companies as
well. It is essential to avoid structural faults in business for enhancing business performance
(Yang and et.al., 2016). Thus, researcher has chosen this topic so that rout cause of these issues
can be identified and advantage of the 3PL outsourcing can be explained that can help
corporations in their growth and development. Furthermore, scholar has interest in the supply
chain management and related activities thus, researcher has chosen this subject so that
individual can prepare a good research paper on the subject matter. There are huge data available
on the third party logistics outsourcing and its impact on business performance. That is
supportive part for the researcher and help in completing the investigation in an effective
manner. Hence, investigator has chosen this topic so that individual can utilise these details well
and can prepare an effective thesis (Bolumole, Grawe and Daugherty, 2016).
Significance of the study
This study will be beneficial for Kerry Group plc because by this way, it will be able to
understand its loopholes in the logistics practices and it will be able to implement 3PL
outsourcing practices effectively in the workplace (Zhang, Pan and Zhang, 2016). This
investigation will shed light on the activities that can support company in gaining competitive
advantage. Thus, it will be helpful for Kerry group in expanding its operations across the world
and improving its business performance. That will be beneficial in understanding the advantage
and issues which are associated with third party outsourcing so that entity can implement this
strategy in the workplace effectively (Samgam and Shee, 2017). This will help the entire food
industry in its growth and development. By this way, corporations which are operating in this
sector will be able to utilise this concept effectively in the organisation. This will support the
industry leaders in considering potential benefits that can be gained by adopting 3PL outsourcing
corporate strategy. Furthermore, it will be beneficial for other researchers because they will get
the brief idea about outsourcing activity and its benefits for the growth of the business unit. This
will support them in conducting further research on the same topic (Etokudoh, Boolaky and
Gungaphul, 2017).
4

In addition, study establishes link between outsourcing drivers and hits impact on
business performance. That will support the outsourcing firms as well in understanding their
importance and providing more effective supply chain solutions to the consumers so that they
can grow well and can earn high reputation in the market (Fountain, 2016).
Chapter structure Chapter 1 Introduction: This would be the first section in which brief overview of the
topic will be given. In this chapter, researcher will frame aim and objectives and will
define rationale of conducting this investigation. Significance of the topic will be
explained in this introductory part. Chapter 2 Literature Review: It would be the next part in which scholar will review
literature of other authors on the same topic. This will help in developing understanding
of the researcher and will support in competing the study in effective manner. (Wang and
et.al, 2018) Chapter 3 Research Methodology: This is the next part in which tools and techniques of
research will be applied so that investigation can be completed in an effective manner. In
this section scholar will involve research philosophy, approach, design, data collection
methods, data analyses methods, sampling, ethical consideration. Suitable methods will
be applied that can help in reaching to the results and completion of research effectively. Chapter 4 Data Analyses: This would be fourth chapter in which scholar will analyse the
data. Entire study will be qualitative in nature thus researcher will use thematic analyses
tool for analysing the details significantly. Data that have been collected through
interview technique will be analysed in this chapter. This will support the researcher in
finding accurate results about impact on 3PL outsourcing on business performance of
FMCG Company in Ireland (Gunasekaran and et.al, 2015).
 Chapter 5 Conclusion and Recommendation: It is the last chapter in which entire study
will be summarized by the researcher. Results found through literature review and data
analyses chapters will be concluded in this section and finally researcher will give
necessary solution to resolve the issues in 3PL outsourcing for the betterment of
employee performance of FMCG Company.
CHAPTER 2: LITERATURE REVIEW
5

Introduction
Literature review is the element that helps the scholar in developing understanding about
the topic and conducting the investigation in an effective manner. In this chapter, researcher
reviews the literature of other authors and understands the conceptual framework. Here,
researcher will review literature of other scholars on inbound and outbound logistics and
conceptual framework of 3PL outsourcing. Furthermore, it will review on factors behind
selection of 3PL outsourcing methods and its impact on business performance of FMCG
companies in Ireland (Impact of logistics outsourcing on the profitability of food processing
industries, 2012).
Outbound and inbound logistics flow and conceptual framework of 3PL outsourcing
As per the view of Jain and Hazra, (2017) logistics outsourcing is the strategic
application in which companies take support of outside partners for performing their logistics
activities. In the traditional time all employees of the business were responsible to handle the
supply chain activities of business and resources as well. But over a period of time, competition
has been increased to great extent and now companies are required to involve expertise of this
field in the business those are called as outside partners those who can provide best supply chain
solutions to the consumers and can satisfy needs of clients as well. Salanta and Popa, (2015)
argued that supply chain and inbound outbound logistics have become the essential part of the
business unit, this supports the firms in gaining success and gaining competitive advantage.
Supply chain management has become the key driver in the success and growth of business unit.
Transaction cost theory is the useful framework that helps in analysing the logistic outsourcing
operational activities (The Impact of Strategic Outsourcing on Organizational Performance: A
Case Study of Bidco Africa Limited, 2016). Outsourcing is the activity in which one company
take support of other firm in order to perform their logistics operations effectively. It is the best
technique that supports the entities in reducing their cost and improving their operational
efficiency (Piecyk and Björklund, 2015).
According to Petryk, (2016) 3PL outsourcing is the activity to optimise capacity of the
corporation and utilise resources of the firm effectively. In the recent era, outsourcing is applied
by the firm as strategic tool for the growth of firm and its financial stability. It is the process
through which companies can involve logistics experts in the business in order to manage
essential tasks and get time to concentrate more on core business activities. That is considered as
6

the best tool for accomplishing goal of the entity and gaining success in the market. Wan and
et.al., (2015) stated that 3PL outsourcing is the specialised distribution activities that are
provided to the firm by external providers (Bellingkrodt and Wallenburg, 2015). These 3PL
companies are more aware with the market conditions and domain as well thus, they are able to
provide satisfactory services to the end users. Moreover, these firms contribute well in enhancing
satisfaction level of clients. These external firms are responsible for providing right products to
consumers at right time.
Salanta and Popa, (2015) stated that inbound logistics can be defined as arrival of
shipment to the business and outbound logistic can be defined as stock leaving from business.
Companies have to order for raw material from other suppliers and for that they have to take
support of transportation mediums. Inbound logistics is related with transportation, storage of
goods into the firm whereas when same goods or the final products go out to the business for
selling is called as outbound logistics (Yeh and et.al, 2017). Logistics is the management of
material and information. It includes procurement, storage and transportation of required
products and services to the right destination at right time so that overall goal of the organisation
can be accomplished. Logistics is the activities in which companies make coordination with its
suppliers in order to get raw material and then coordinate with consumers for selling these goods
and services. These activities impact on the business performance to great extent (What Is
Outbound Logistics?, 2015). If entities fail to manufacture quality products and deliver it to the
right consumers on time then it may affect its sales volume and can decrease satisfaction of
customers to great extent (Payaro and Papa, 2017).
As per the view of Samgam and Shee, (2017) logistic is the flow of goods and services
from one place to another. In the inbound logistic movement companies concentrates more on
purchasing the right materiel from right suppliers at affordable cost and involvement of correct
transportation medium so that these raw materials can be reached to the firm's warehouse at right
time. The entire logistic movement or flow of goods relies on transportation and storage
activities. Verma, Koul and Pai, (2016) argued that third party logistics are the specialized firms
that manage company’s warehousing, transportation activities etc. It is not limited to the
warehousing and transportation but also includes inventory management, packaging, freight
forwarding, cross- docking etc. 3PL take care of all tasks related with supply chain and manage
logistic operations of the business units (What is third party logistics (3PL), 2017). The
7

companies that are operating their business across the world and dealing with mass audience for
them it is very difficult to concentrate more on shipment of goods or raw material. In such
condition they may fail to justify warehousing activities and inventory management activities.
Thus, 3PL logistic entities provide them best supply chain solutions so that these international
firms can concentrate more on their core business activities and its growth.
Outsourcing has become the essential activity for the entity. Effective management of
outsourcing activity supports the firms in expanding their business into international market and
planning for development of the business (Singh, Gunasekaran and Kumar, 2017). But
outsourcing at operational level enhances dependencies of the firm on other providers that
creates strategic vulnerabilities for the corporation. Supply chain management is related with the
designing, execution, monitoring and controlling over the flow of goods. Suppliers and
customers both are the key stakeholders of the firm. It is very important that they be positive
towards the brand. If suppliers provide quality raw material to the firm on time and if entity send
quality goods to consumers on time then it may help the corporation in its growth and
development (Impact of logistics outsourcing on the profitability of food processing industries,
2012). Daugherty, Bolumole and Schwieterman, (2017) argued that Transaction cost theory is
related with the costing of outsourcing. It helps the entities in identifying their existing
performance and making necessary changes in the working operations so that so that company
can grow well and can gain success in the market. Economic theory is the best approach that
supports in identifying the consumption of goods in the firm and revenues generated by the firm
through these products. If consumption is high then companies need to look for involving the
third party logistic into the business. 3PL plays significant role in the entity and supports in
reducing consumption cost of the firm by this way entity can reduce its expenditures and can
gain more economic values (El Meladi, Glavee-Geo and Buvik, 2017).
As per the view of Salanta and Popa, (2015) logistics outsourcing is the tool that supports
the business in workforce reduction and enhancing freedom as well. It is the management tool
that helps in shifting of organisational structure and transformation of business process so that
entity can improve its performance in the market. This supports in resolving issues related with
inbound and outbound activities. 3PL logistics companies are experts of this field thus, they are
able to provide the best supply chain solutions that can help in reducing operational cost of the
firm and enhance its revenues as well (Rita and Krapfel, 2015).
8

Factors behind 3PL outsourcing
As per the view of Etokudoh, Boolaky and Gungaphul, (2017) 3PL logistics outsourcing
is mainly used by the big organisations. One of the main elements that force companies to use
3PL outsourcing services in the organisation is resource network. Third party outsourcing
providers are the market leaders and they have strong network that helps them in completing
work within less period of time. This strong supply chain network provides benefit to over in-
house supply chain activities. It is considered as cost effective way to get raw material and send
the finished goods to the end person within stipulated period of time. These providers have
strong chain and network so they are able to provide quality services at minimum cost. This
helps in an effective utilisation of resources and minimising wastage in the organisation. 3PL
outsourcing is the procedure that gives benefit to the companies to get volume discounts.
Expertise of 3PL outsourcing providers is the main factor that motivates the firm to take
advantage of their expertise. These third party logistics providers are the knowledgeable people
in the outsourcing services. They have great knowledge about the latest technology. Thus, they
are able to manage inventory well and provide visibility to monitor entire outsourcing procedure
of the firm. Outsourcing logistics is beneficial for the firm because these entities can concentrate
more on core competencies (Zhang, Pan and Zhang, 2016). They leave all the outsourcing
activities and supply chain activities on the providers so that they do not have to spend much on
the transportation issues and inventory issues. With the expertise of outsourcing providers,
companies are able to get raw material on time and send it to the end users on time. Thus, firms
get more time to spend on their core business activities so that they can enhance their sales
volume and can earn more revenues.
According to Jain and Hazra, (2017) scalability and flexibility is the main element behind
engaging with 3PL outsourcing. 3PL outsourcing services have capabilities to scale the space, it
supports in conducting the operations as per the inventory needs. Companies that require such
outsourcing services can enjoy the stress free transactions. This helps in utilising company's
resources effectively and gaining more benefits. It is the beneficial tool that supports the firms in
enter into the new region and expand business operations across the world. These 3PL providers
have strong chain and have strong distribution centres (Gunasekaran and et.al, 2015). This chain
supports them in quick shipping of goods and services across the world. Involvement of third
9

party logistic outsourcing services is that it helps in distributing the products at lower cost and
delivers the finished goods to the end user at minimum period of time.
Petryk, (2016) stated that reputation of 3PL providers is the main factor behind choosing
the outsourcing services in the organisation. These providers have strong brand image, they
concentrate on quality and reliability thus, they are able to offer high quality customers services
to its corporate consumers and end users. This increases satisfaction level of consumers. As per
the view of Salanta and Popa, (2015) cross docking order consolidation is considered as one of
the most important factor that force companies to choose or get engaged with the third party
logistics outsourcing services. Large retailers and other big firms have to supply their material
across the world in such condition it becomes difficult for them to continuously monitor the
docking and track each delivery (Piecyk and Björklund, 2015). Cross docking is considered ass
value added process. Companies have to monitor shipment of its all goods and services which is
time consuming process. 3PL outsourcing providers have good experience in the same field and
they receive products on the centre and they give immediate divert to the concern person so that
shipment can be delivered to the next point as soon as possible. They pay attention of avoiding
the storage issues so that products do not get damaged and reach to the final destination soon.
Companies those which are operating in the food industry they have to take care of this thing that
ingredients or food material do not get contaminated. Otherwise, it can cause issues to the
consumers. So it is very important to monitor and cross check the docking. This is only possible
by involving third party logistic outsourcing companies into the business. By this way material
can be reached to the end destination on time and can fulfil needs of consumers.
As per the view of Samgam and Shee, (2017) third party logistic outsourcing companies
offer innovative solutions to the firm so that it can manage its inventory and warehouse
effectively. Warehouse management system and electronic data interchange are the latest
technological solutions that help in developing efficiency in the supply chain processes. There
are various barriers that an entity has to face while transporting goods from one to another and in
the warehouse management system. Involvement of 3PL outsourcing companies are beneficial
for the firm in getting innovative and impactful solutions so that operational performance of the
corporation can get improved and it can perform better in the workplace (Bellingkrodt and
Wallenburg, 2015). That is the main factor that forces companies to involve 3PL outsourcing in
10

the business unit so that it can manage its inventory and warehouse significantly and can get
innovative solutions.
Verma, Koul and Pai, (2016) stated that there are third party logistic outsourcing firms
concentrate on safety measures and take care of the aspect that no employee can get harmed by
using any damaged equipment in the workplace. Big organisations have to look at the various
aspects so sometimes, they ignore the safety of employees. Involvement of 3PL outsourcing
services is the beneficial for the employee safety and they become able to perform well in the
workplace. It supports in reducing accidents and help in creating healthy workplace environment.
That is the beneficial thing because that enhances motivation level of workers and they perform
their duties well without any fear.
Wan and et.al, (2015) stated that globalization is the driving factor behind outsourcing.
Each firm aims to expand its business across the world. That is the main reason that firms
involve third party logistic companies into the business so that they can provide expertise
services to the consumers.
Impact of 3PL outsourcing on FMCG Company
As per the view of Yang and et.al, (2016) over a period of time use of outsourcing
services has been increased in the organisation. It helps in improving efficiency level of supply
chain management and support he firm in gaining competitive advantage. Third party logistics
outsourcing services are beneficial and impact positively on the business unit. One of the major
benefit of using these services in the firm is that with the involvement of these entities'
organisation can focus on its core business activities. That helps in improving business
performance of the firms and entity can gain competitive advantage. If managerial employees
concentrate on supply and distribution of goods and services then it creates difficulty for them to
pay attention on other essential departments and business activities. In such condition entity get
failed to provide timely goods to the consumers and expand its operations across the world.
Companies those which are applying 3PL outsourcing aspects there employees are able to pay
more attention on core business activities. These saved hours of workers are used in marketing,
developing relationship with consumers and development of new ideas. This impacts positively
in enhancing productivity of the firm and gaining long term success to the business unit.
Samgam and Shee, (2017) stated that third part logistic outsourcing are the professional
organisations those which has good experiences in this field. They give expertise solutions and
11

help the firm in reducing their unnecessary expenditures. These firms provide effective plan to
the companies so that they can deliver their goods and services to the end users on time and at
affordable rates. This supports in minimising the errors and enhancing its revenues. Involvement
of 3PL outsourcing companies are profitable for the business unit because that helps in obtaining
less expensive material and improve inventory management issues. Involvement of these third
party logistics outsourcing companies is helpful for the corporation in boosting their profitability
by going in the offshore market. According to Petryk, (2016) 3Pl outsourcing impacts negatively
on the business unit because these firms have good knowledge about market but they are
unaware with the specific objective of the firm. In such condition quality of goods may get
suffered. These outsourcing firms try to provide goods to the companies at affordable rates for
that they use cheaper material and cuts corners. This decreases overall quality of the material that
affects consumer satisfaction to great extent. This increases risk of employees as well because
due to involvement of poor quality material workers of the company may get physical hurt. This
decreases their level of performance that impact on overall growth and development of the
entity.
As per the view of Jain and Hazra, (2017) unanticipated cost is associated with the
involvement of 3PL outsourcing services in the organisation. Though, these 3PL providers are
able to provide innovative solutions so that efficiency level and financial saving of the
organisation can get increased. But one of the main issue is associated with them is that
unanticipated cost. There are hidden costs that are associated with their services whenever third
party involves into supply chain management or any other operational activity of the business.
This enhances shipping cost of the firm. Companies have to pay additional hauling freight and
tax in order to deliver the goods on time. Salanta and Popa, (2015) argued that third party logistic
outsourcing companies have huge experience of the market and they are the expert of the logistic
activities. They are able to meet with the consumer demand that enhance satisfaction level of
clients that supports the firm in enhancing its profitability to great extent. This is the major factor
due to which companies involve outsourcing agencies into the business operation because it
assists in the growth of the entity.
According to Wan and et.al., (2015) working with third party organisations is the best
way through which entity can utilize their resources well. This helps in creating more extensive
infrastructure and making necessary adjustment sin the firm so that entity can run its business
12

significantly. This is the best way to reduce stress in the workplace and drive higher profit
margin. Yang and et.al., (2016) stated that logistic outsourcing companies provide innovative
solutions to the entities that helps in making sound business decisions. Its activities are related
with the transportation, warehousing, planning, value added activities etc. Strategy decision
related to distribution network supports the firm in delivering quality products to the end users
on time and reducing errors in the inventory system and management system.
As per the view of Samgam and Shee, (2017) outsourcing is considered as beneficial tool
that impacts positively on the business performance of FMCG companies. Ireland is the country
where many FMCG companies are facing issue of poor efficiency level of firms. Thus, these
entities involve more to the outsourcing companies so that their operational efficiency level can
be improved. But the major problem with involvement of third party logistic outsourcing
companies is that firm losses its control over the outsourcing activities. It has be depended upon
the other firms to great extent. There is risk associated with it is that sensitive information can
get transferred to the competitors easily. By this way, company's strategies and operational plan
can get leaked in the market that can impact on the overall business performance of the
corporation. Most of the food companies employed outsourcing firms for short term. The main
agenda of involving these entities into the business is to avoid rigidities causes by labour laws.
Issues of 3PL outsourcing that affects the working environment and employee performance of
the company
According to Yang and et.al, (2016) third party logistic outsourcing is the key activities
through which entities try to manage their inventory and supply chain management well. It helps
in managing warehouse activities well and getting and delivering goods and services on time.
One of the major issues that are faced by firm due to involvement of 3PL outsourcing is
increased emphasis on rules and regulation in the country. Government of the nation is paying
more attention on making strict laws so that illegal trading of goods can be minimized. 3PL
companies have to ship goods in different nations. In such condition it becomes essential for
them to follow legislation of different regions. It is essential for the employees that to be aware
with norms and regulations of each region so that they can coordinate well with the 3PL
companies. Otherwise, they may get failed to meet with the real objective. Changes rules and
regulation create difficulty for the employees because in such condition they have to modify their
working environment and have to perform work as per the new regulations. This affects the
13

performance of workers to great extent because if they do not have good knowledge about the
rules then they may fail to meet with the standards. Sometimes changing rules and regulation
demotivate the employees and they do not perform their duties well.
According to Samgam and Shee, (2017) most of the third logistic companies are taking
support of cloud based technologies. These are effective techniques that help in improving
efficiency level in the logistic activities. This is the technology that supports in easy sharing of
data that allow traceability of item so that supply chain management can be done significantly.
This supports employees in performing well because they get right resources on time that
supports in providing quality products and services to the consumers and deliver it to the end
users on time. Due to inefficiency in the logistic operations of entity employees feel unable to
perform their work effectively. In such condition faults in the working performance get increased
and workers fail to perform well in the organisation. Jain and Hazra, (2017) argued that
involvement of 3PL companies in the firm supports the staff members in saving their time. By
this way employee get enough time that they can spend in other activities. They do not have to
track the transportation of goods and delivering services of the company. That helps the workers
in getting engaged into core business activities and performs core business activities effectively.
By this way skilled workers put their hard efforts to enhance number of consumers and market
their products into different regions. That supports the firm in expanding their business and
gaining competitive advantage. Employees put their hard efforts that give them more career
opportunities and their motivation level gets increased. This helps in creating healthy workplace
environment and support the firm in sustaining in the market for longer duration. Thus,
involvement of 3PL companies into the business operations is helpful in improving workplace
environment and raising performance of the employees to great extent.
Verma, Koul and Pai, (2016) stated that there are issues related with the third party
outsourcing that affect the operational efficiency and overall business performance of the firm.
Companies that are using these 3PL outsourcing services of other 3PL companies are unable to
control over the logistic activities that affect supply and demand of products to great extent.
Sometimes due to transportation issues firms fail to meet with the demand. Employees feel
unable to track the get details of raw material delivering date. In such condition further
operations of the firm get affected and employee fails to answer the quarries of consumers. Issue
related with gap in demand and supply is the major challenge that is faced by the workers of the
14

firm because in such condition they fail to deliver good to the end user on time. As per the view
of Salanta and Popa, (2015) third party logistic outsourcing is the difficult task for the entities. In
this both companies have to make an agreement in which they have to be devoted towards time
and both have to make efforts to fulfil objective of both companies. That sometimes creates issue
of losing internal logistic management capabilities of individual in the business unit. High
dependence on the 3PL companies creates issue for the employees because they fail to conduct
other operations well if third party logistic companies do not deliver them goods on time. This
affects the working environment of business unit to great extent.
As per the view of Yang and et.al., (2016) communication issues are faced by employees
of companies in the 3PL company’s involvement. In such condition, workers fail to coordinate
well with buyers and suppliers. That causes operational failure condition of the firm. It affects
working environment of the business because that impacts on the customer’s satisfaction and
consumers move towards other firms. In such condition, company pressurise their existing
employees to raise their level of performance. That also enhances negatively in the workplace
which impact overall business performance to a great extent. Samgam and Shee, (2017) argued
that supply chain management is considered as one of the most important function of
organisation that helps in smooth flow of goods and services. This helps in designing, planning
and controlling the supply activities effectively.
Summary
Above literature review summarised that Third party logistics outsourcing is able to
provide amazing facilities to employees. That supports them in getting sufficient time so that
they can concentrate more on core activities of business. This aids in improving their
performance that assists in the growth of organisation to great extent.
CHAPTER 3: RESEARCH METHODOLOGY
Introduction
In order to prepare the effective dissertation, it is essential to conduct the research in
systematic manner. Individual has to take support of appropriate methods that assists in carrying
out investigation in an effective manner. Research methodology is the tool and technique or
principles that support scholar in completing the research in systematic way (Taylor, Bogdan and
DeVault, 2015). It is the procedure that assist researcher in addressing research problems and
reaching to the end results. This chapter will explain various tools and techniques that are used
15

by scholar in order to conduct study on advantage of third party logistics outsourcing in growth
of the organisation. It will include several methods: philosophies, approach, design, data
collection, data analyses sapling methods.
Research Philosophy
Research philosophy defines a belief of individual in order to gather information about
subject matter. Selection of appropriate research philosophy is very important so that study can
be conducted accordingly. Positivism, interpretivism and realism are three main types of
philosophies that are applied in different dissertations (Vaioleti, 2016).
Positivism philosophy conducts the investigation from objective view point. This method
does not involve human being in the research. In this technique, researcher gathers detail about
the topic from observations. Sometimes, observations in different situations are different thus,
data can be manipulated. It is the type of tool in which scholar makes prediction on the bases of
previous observations (Humphries, 2017). Positivism philosophy concentrates on quantitative
data and use statistical analyses tool in order to develop understanding about the subject matter.
On other hand, interpretivism is the method that conducts investigation from subjective point of
view. It is the type of technique in which it is essential to involve human being so that reality can
be acknowledged. Primary data that have been collected by using interpretivism approach are
having high validity. By this way, individual can gain real details about current situation.
Whereas realism research philosophy is another type of philosophy which is based on
assumptions (du Plessis and Van Niekerk, 2014). This is scientific approach that concentrates
more on scientific data. It helps in disclosing truth of reality by looking at the existence of
objects
In the present study, scholar has applied interpretivism research philosophy. This is
suitable for the present research area finding advantage of 3PL outsourcing that influences
employees towards their performance for improving growth in FMCG companies. By involving
human being in the investigation, research has become able to gather information about real
situation of FMCG companies, 3PL logistics and how third party logistic is beneficial in the
growth of business unit (Kovach, 2015). This method focuses on reality and tries to develop link
between social and experimental levels. This aids in finding accurate results. As present study is
qualitative in nature thus, use of interpretivism philosophy is considered as the most suitable and
supports in gathering accurate information about significance of 3PL for the FMCG companies.
16

Research design
Research design is the outline of entire dissertation that reflects the process in which
study would be conducted (Faber and et.al, 2016). There are various types of research designs
such as descriptive, experimental, exploratory etc. All these designs have unique characteristic
and conduct the investigation in different manner.
Descriptive research design is the method that describes current objectives and behaviour
of subject. It describes view point of the individuals who participate in the dissertation and
contribute in developing understanding about the subject matter. This tool is able to provide
systematic information about the area of study (Sunderland and et.al., 2015). Here, scholar is not
required to formulate hypotheses. In this method, it is required to include study material with
extra care and measure this information effectively. Experimental research design is another type
of method that experiments the acts in order to reach the final results. It is the technique in which
all participants are assigned in a group randomly. This helps in gaining accurate results rather
than predicting the things. Exploratory design is another type of method that helps in gathering
general insight about the area of study and tries to explore the situation (Daniel, Kumar and
Omar, 2018).
In the present dissertation on advantage of 3PL outsourcing in the growth of FMCG
companies, scholar has applied descriptive research design. It is simple method and supports
researcher in finding the facts about the topic and describing real situation in effective manner.
The main benefit of using this tool is that it shed light on current issues and helps in describing
situation completely. By this way, researcher has become able to develop understanding about
third party logistics and how it is beneficial for the growth of organisation. The main reason
behind selecting this methodology is that it assists in getting valid research findings. It is less
time consuming process that supports in analysing the non- quantified issues. As current topic
advantage of third party outsourcing is the non-quantified topic thus, by using descriptive
research design individual can collect in-depth detail about the subject matter (Worthington and
Bodie, 2017).
Research approach
Research approach can be defined as planning of entire study that involves various steps
and broad assumptions in order to conduct an investigation in systematic manner. This assists the
researcher in focusing on the main concept and measuring validity of data. Inductive and
17

deductive are two main approaches that are applied in different studies. Inductive approach is the
type of method that concentrates on theories and observations. On the bases of theories and
models, researcher conducts the entire study. This method adopts the method where scholar
applies theories rather than formulating hypotheses. It pays attention on aim and objective and
accordingly involves theories under the research. It starts with observation and researcher
conducts the entire investigation from generalised manner. In this methodology scholar tries to
find out preliminary relationship between various aspects (Taylor, Bogdan and DeVault, 2015).
Individual observes the data and analyses pattern and on the bases of these data theory is
generated. Inductive research approach is generally applies in the qualitative researches where
scholar need not to formulate hypotheses (Vaioleti, 2016).
On other hand, deductive research approach is another type of methodology which is
applied in quantitative type of investigation. It is the method in which researcher has to develop
hypotheses. These hypotheses are being tasted in order to get accurate results about the subject
matter. It is tool in which first scholar read theories and formulate hypotheses. On the bases of
these, tests are being applied. Confirmation and rejection depends upon the results of the test.
This method is helpful in carrying out investigation from specific to general manner (Humphries,
2017).
In the current investigation on advantage of 3PL outsourcing in improving performance
of organisation and for the growth of business unit researcher has applied inductive research
approach. It is considered as most suitable technique that assists in applying theories ad
developing understanding of the scholar about the topic effectively. This is the most suitable
technique for the present research because by this way, individual can identify link between third
party logistic outsourcing and performance of the FMCG companies (du Plessis and Van
Niekerk, 2014). It assists in conducting the research in simple manner and gaining accurate
answers. That helps the scholar in addressing research problem and generating valid results. This
method has supported researcher in developing scientific attitude and carrying out research in
logical manner.
Research strategy
Research strategy plays a significant role in the dissertation as strategy applied by the
scholar decides the way in which entire investigation will be conducted. This helps the scholar in
conducting the research in an effective manner and getting desired results. Qualitative and
18

quantitative are two main types of strategies (Kovach, 2015). Both these are applied in different
type of researches that depends upon the requirements of the topic. Qualitative research strategy
is the method in which researcher take support of theories and models. Individual does not
involve any kind of statistical data or numbers. Whereas quantitative strategy is applies in the
section where scholar has to develop hypotheses and have to use numbers.
Current dissertation is based on advantage of 3PL outsourcing in improving employee
performance for the growth of FMCG companies. Here, it is essential for the researcher to
develop link between third party logistic outsourcing and performance of organisation. For that
researcher has adopted both strategies (Sunderland and et.al, 2015). Individual has applied
theories, models and also applies statistical tools as well. This has supported in gaining accurate
results about how 3PL outsourcing give benefit to the firm and help in their growth.
Data Collection
Data collection is the process that assists in collecting in-depth detail about the topic.
That helps the researcher in developing understanding about the topic. It assists the person in
giving answers to the research questions and evaluating outcome as well. Entire dissertation and
its results depend upon the details that are being used in the investigation. It pays attention on
accuracy and validity of the data so that accurate results can be generated at the end of
dissertation. Researcher makes sure that accurate data is being involved so that integrity of the
study can be ensured. There are various methods thorough which individual can gather necessary
information about the subject matter. Primary and secondary are two common process of
collecting information about the topic (Worthington and Bodie, 2017). Secondary data collection
sources are the tools that give details that are already present in the market. In this method,
researcher involves such details that are published in books, newspapers, journals etc. there are
many studies that have been conducted on the same topic. Researcher gathers information from
these previous studies and develops understanding about the topic. That helps the scholar in
gaining desired results. On other hand primary data collection sources are the tools that help the
researcher in collecting such details which have not been used earlier. These details collected by
the researcher by own. There are various sources of collecting primary details such as interview,
questionnaire, observation, survey etc. All these methods have their own strengths and
weaknesses. Researcher has to take support of the correct method that can give suitable answers
about the topic. Interview is the source in which individual conduct face to face interview with
19

the concern person those who have great knowledge about the topic. In this method, researcher
has to concentrate on involving clear questions that can be easy understandable. Questionnaire is
another methodology that helps researcher in asking questions from the samples and gaining
information about real situation of entity and how 3PL can be beneficial for them (Daniel,
Kumar and Omar, 2018).
In the present study on advantage of 3PL outsourcing for the growth of organisation,
researcher has applied primary data collection sources. Individual has gathered first hand details
about third party logistic outsourcing. This has supported researcher in identifying eh current
process that are applied by FMCG company and how these firms can get benefit from third party
logistic outsourcing. In the current dissertation researcher has applied interview method. This is
most suitable primary source that assists in gathering information about working culture, current
practices of FMCG companies and how they can take advantage of 3PL outsourcing. This helps
in involving views of participants about the subject matter. The main advantage of using
interview technique is that it gives information about real facts of the firm. Involvement of
interview technique has helped the scholar in developing understanding about topic and finding
accurate answers. Furthermore, researcher has applied survey method as well in order to gather
information about the topic.
Sampling
Sampling is considered as method of selecting samples of individuals from the
population. This is essential part of dissertation as it is significant for the researcher to eliminate
bias so that accurate answers can be gathered (Worthington and Bodie, 2017). There are two
main types of sampling methods: probability and non-probability. Probability sampling is the
method in which each person gets equal chance to be part of the investigation. This assists the
researcher to generalise the results. There is various probability sampling techniques: simple
random, stratified, cluster etc. Simple random sampling is the method in which scholar involves
sample in the study randomly. Stratified random sampling is another type of probability
sampling method in which researcher separates population in subgroup. This subgroup is
developed on the bases of age, income, designation etc. Stratified sampling assists in gaining
statistically accurate data about the topic. Cluster sampling is another type of methodology that
divides entire population in clusters. All these clusters are based on particular geographical
location.
20

Non probability sampling is another technique which is opposite to probability sampling.
In this method, individuals do not get equal chance to be selected. Convenience, purposive and
quota sampling are different types of non-probability sampling methods. Convenience sampling
involves such participants who are conveniently available (Kovach, 2015). Purposive sampling is
another type of method that involves such people in the study those meet the criteria and are able
to fulfil purpose of the dissertation. Quota sampling is the technique that involves specific
subgroup those who can give in-depth detail about the subject area.
In the present study on advantage of third party logistic in the growth of FMCG
companies, researcher has applied non-probability sampling technique. This has supported
researcher in involving particular group of people those who can give accurate answers about the
third party logistic outsourcing. In the present study, scholar has applied purposive sampling
technique (Taylor, Bogdan and DeVault, 2015). All these samples have been selected for specific
purpose so that criteria can be met. In the current study, scholar has involved 50 employees of
two FMCG companies in order to gather information about advantage of logistic outsourcing.
These employees have been selected from logistic department those who are working in these
firms from more than 5 years. Survey has been conducted from these employees. On other hand,
researcher has involved three managers of marketing, logistic and financial department of FMCG
Company and interview has been conducted with them. This sampling procedure has supported
the scholar in gathering information about benefits of 3PL for the company and how entity can
get positively affected by engaging into third party logistic outsourcing (Vaioleti, 2016).
Research instruments
In order to complete this dissertation in an effective manner and addressing the research
questions, scholar has applied survey method and interview technique. Both these tools have
supported the scholar in identifying the performance of employees and how using third party
logistic is become beneficial for the FMCG companies. Individual has involved close ended
questions in the survey method. On other hand, in the interview process individual has involved
open ended questions. Employees and managers who have participated in the dissertation have
given accurate answers to the researcher of each asked question. That has helped the scholar in
finding accurate results (Sunderland and et.al., 2015). Use of both these techniques has helped in
carrying out investigation in systematic manner and identifying performance of FMCG
companies.
21

Data Analyses
Data analysis is considered as one of the most important part of dissertation. After
gathering all relevant information about the topic, it is essential for the scholar that to analyses
these details. This analysis helps the scholar in reaching to the end results. There are two main
techniques of data analyses that are used in different types of researches (Daniel, Kumar and
Omar, 2018). Qualitative analyses method is used in the studies where researcher has conducted
the investigation in qualitative manner on other hand quantitative analyses methods are applied
in the investigations where scholar conducted the studies in quantitative manner. As in the
present dissertation researcher has applied both these methods. Entire study has evaluated data in
logical and analytical manner. Each component has been examined properly. Quantitative data
analyses are being used in the study where researcher has collected numeric data from the
survey. In this, researcher has used Likert scale method. Individual has involved close ended
questions and employees have given answers of these questions. On other hand, in the qualitative
analyses tool, scholar has tried to understand situation of FMCG companies. In this, interview
has been followed and open ended questions have been involved regarding role of 3PL
outsourcing in the growth of organisation.
Ethical consideration
It is very important for the scholar to involve ethical aspects in the dissertation. Ethical
components help the researcher to deal with each involved element effectively. In order to
complete this dissertation in effective manner researcher has involved all essential ethical
aspects. Individual has promoted authenticity and original knowledge. There is no false
information that can mislead the investigation. Data have not been manipulated. All these details
that have been used in the investigation in its original manner, meaning of these details have not
been changed. Furthermore, involved participants have given their consent and then individual
has involved them in the dissertation. Researcher has sent them consent form. In the consent
from all detail regarding the study and its purpose are maintained, after reading all these detail
participants have signed the consent form and sent back to researcher. Researcher has not
involved any question which is ethically not right (Daniel, Kumar and Omar, 2018).
Scholar has maintained dignity and individual has not harmed respect of any involved
participant. Thus, all the respondents were very happy to be part of the investigation. Researcher
has taken care of confidentiality and data protection. All the details that have been used in the
22

study have not been liked to third party (Humphries, 2017). It has been kept secure in the
password protected computers. Investigator has taken extra care while collecting detail about
3PL outsourcing and its benefits for FMCG companies. Individual has not copied any material
from any site. Individual had just read this information and translated these details into own
language in the dissertation. Researcher is well aware with the plagiarism issue thus, this aspect
has been taken into consideration seriously and no details have been copied (Kovach, 2015).
Validity and reliability
Reliability and validity are two most important component of dissertation. It is
responsibility of researcher to involve such details that are reliable and have validity. Reliability
is element that describes that if same data and tool have been used by other authors then same
results will be generated (Faber and et.al., 2016). Validity is another essential aspect which
ensures that researcher has applied scientific research methods while conducting this dissertation.
The focus of researcher while carrying out this research was to involve highly reliable and valid
data so that accurate data can be generated. Researcher has used primary data collection sources,
in which individual has applied interview and survey method. In this scholar has asked open
ended and close ended questions. This has helped in maintaining high reliability in the
investigation. All these details are highly reliable because these data have not been manipulated
by the scholar (Worthington and Bodie, 2017).
Apart from this, researcher has also used secondary sources such as books, journals,
internet articles etc. All these details have been collected from reliable sources. Individual has
applied scientific tool in order to analyse details and finding desired outcome. As researcher has
taken care of reliability and validity aspects thus, accuracy and creditability have been
maintained (du Plessis and Van Niekerk, 2014).
Research limitations
Researcher has faced some limitations that have created issue for the researcher to
complete this investigation. These are as following:
 One of the main limitation in the study was selection of appropriate data collection
sources. As researcher aims to conduct both qualitative and quantitative study thus,
selecting data collection method was little difficult. But proper planning and good
research skills have supported scholar in selecting appropriate method of collecting
details about the third party logistic (Daniel, Kumar and Omar, 2018).
23

 Another limitation of the dissertation was limited time. As conducting investigation on
such topic which requires in-depth detail about FMCG companies require adequate time.
But as in the present research scholar was not having such huge time thus, individual was
facing trouble. But proper scheduling has supported the scholar in finishing this study
with stipulated period of time.
 Involving correct samples in the investigation was another challenge for the researcher. It
was difficult to select whom to involve in the dissertation those who can give accurate
answers about the topic. But with assistance of correct guidance, individual has become
able to manage this aspect well (Faber and et.al, 2016).
 Limited financial resources were another limitation of the research. Individual has to
collect huge data on third party logistics, employee’s performance and growth of
companies. These are required funds but due to limited monetary resources, it was
difficult for individual to manage it. But scholar has managed well and has utilised
available resources effectively. This has helped in completing the investigation in an
effective manner (Taylor, Bogdan and DeVault, 2015).
CHAPTER 4: DATA ANALYSES
4500
Introduction
This chapter will record data and will analyse these detail. It will help in finding accurate
results about benefits of 3PL outsourcing.
Data analysis
Questionnaire
Theme 1: Length of working in organisation
Less than one year 8 16%
Between 2-3 years 22 44%
Between 3-5 years 15 30%
More than 5 years 5 10%
Mean 12.5
24

Median 11.5
Mode 0
Interpretation: From the above discussion, it is found that 44% respondents have viewed that
they are working in the organisation from 3-5 years. On other hand, 16% answers have said that
they are employed in entity from less than one year. Whereas 30% participants have replied that
they are working in organisation from 3-5 years. Whereas 10% respondents have said that they
have employed in the cited firm from more than 5 years. From the above discussion, it can be
interpreted that maximum people are working in workplace since 2-3 years. They have great
knowledge about the workplace and its practices.
Theme 2: Kerry Group plc implements third party logistic outsourcing practices effectively
Yes 35 70%
No 15 30%
Mean 25
Median 25
Mode 0
25

Interpretation: From the above data, it is analysed that there are 70% respondents who have
viewed that yes Kerry group plc implements third party logistic outsourcing practices effectively.
On other hand, 30% participants are those who have viewed that no company does not
implement these practices effectively. Use of third party logistics is the great tool that helps
entity in managing operational activities so that company becomes able to fulfil needs of
consumers and delivering goods and services to consumers timely.
Theme 3: Rank to importance of third party logistic outsourcing for improving business
performance
Excellent 5 10%
very good 15 30%
Average 18 36%
not good 12 24%
Mean 12.5
Median 13.5
Mode 0
26

Interpretation: From the above study, it is analysed that third party logistic outsourcing services
of FMCG firm is average. 36% respondents have viewed that 3PL outsourcing services of
company is average. Whereas 30% answers have viewed that its outsourcing practices are very
good. On other hand, 24% respondents have said that outsourcing practices of business unit are
not good. Besides this, 10% participants have said that outsourcing practices of business are
excellent. From the above data, it can be interpreted that Kerry group plc is implementing third
party logistic outsourcing services for improving business performance but its outsourcing
practices are average. There are various issues in the logistic practices of the firm that create
difficulty for the business in implementing these practices effectively and performing well in the
market. Third party logistic outsourcing is the beneficial tool that supports business units in
managing its inventory and logistic activities well. If company applies its practices well, then it
can be better for the firm in improving efficiency level and enhancing revenues of the
organisation. Mean value of responses is 12.5 and value of median is 13.5. Maximum people
rank the third party logistic outsourcing services of the firm as average. This reflects that
company is required to make changes in its logistic outsourcing practices so that it can sustain in
the market for longer duration.
Theme 4: 3PL is important for the FMCG companies
Improve customer services 12 24%
27

Improve distribution of goods 15 30%
Manage import export
activities properly
20 40%
Inventory management 3 6%
Mean 12.5
Median 13.5
Mode 0
Interpretation: When respondents were asked about importance of 3PL for FMCG companies,
then 24% answerers have answered that third party logistic outsourcing is significant in
improving customer services of the firm. On other hand, 30% participants have replied that it is
beneficial in improving distribution of goods to the end users. Furthermore, 40% respondents
have said that third party logistics is beneficial in managing import and export activities of the
firm properly. Furthermore, 6% answerers have said that it helps in inventory management.
Mean value of the responses is 12.5, value of median is 13.5 and mode is zero. From the above
discussion, it can be interpreted that third party logistic outsourcing is the advantageous activity
for the FMCG company because by this way, companies can enhance their imports and export
activities. It helps them in generating more revenues. By this way, companies can perform well
28

in the market. From the above data, it can be interpreted that 3PL supports the entities in smooth
flow of goods and services from suppliers to customers. Consumers can get quality products on
time and this can assist the entity in raising efficiency level of operation. It assists in reducing
cost because if distribution is managed, then entity can be able to concentrate on core business
activities which will aid in enhancing productivity and profitability of the organisation.
Theme 5: Issue face by FMCG in effective implementation of outsourcing practices
Poor funds allocation 15 30%
Improper knowledge about
outsourcing firms
12 24%
Changing customer demand 17 34%
Others 6 12%
Mean 12.5
Median 13.5
Mode 0
Interpretation: From the above data it is identified that 30% answerers have viewed that poor
allocation of funds is the major issue that is faced by FMCG firms. That is the main reason due
to which entity fails to manage its outsourcing activities well. Poor allocation of resource
29

increase burden on the firm and it fails to implement logistic outsourcing practices significantly
in workplace. On other hand 24% respondents have said that FMCG companies do not have
adequate knowledge about the outsourcing practices. It is the major reason that entity fails to
identify outsourcing partners and it fails to involve them in the organization in effective manner.
Whereas 34% participants have viewed that changing customer demand create issue for FMCG
firms. Consumers requires different products thus, it is difficult to make decision regarding
outsourcing partners. That is why organization fails to manage its operations well. Whenever
demand gets changed then entity will have to involve new outsourcing partner that increases its
cost and enhance risk of entity as well. On other hand 12% answers have said that there are
other issues that are faced by FMCG companies in effective implementation of outsourcing
practices. These issues are lack of human resource, poor funds, limited presence in market etc.
Mean value of responses is 12.5. Value of median is 13.5 and mode is zero. From the above data
it can be interpreted that maximum people believed that changing customer demand and poor
funds allocation are the major problems that are faced by FMCG companies that prohibited them
to effective implementation of outsourcing practices.
Theme 6: % of budget that is allotted by Kerry Group plc firm for 3PL outsourcing
0-20% 31 62%
20-40% 12 24%
40-60% 5 10%
More than 60% 2 4%
Mean 12.5
median 8.5
Mode 0
30

Interpretation: From the above data it is found that 62% answers have viewed that Kerry group
Plc allocate 0-20% budget for 3PL outsourcing. On other hand 24% answerers have said that
company allocates 20-40% budget for its outsourcing practices. Whereas 10% participants have
given respond that company is allocating 40-60% budget for outsourcing activities. On other
hand 4% people have said that company allocates more than 60% budget in these activities.
From the above data it can be interpreted that Kerry Group plc is the FMCG company which do
not much concentrates on outsourcing activities. Company is facing major trouble of fund
allocation. It allocates only 0-20% funds in these practices. That is why entity is unable to
involve outsourcing partners in organization effectively. That is the major reason that company
ace huge issues in managing its logistic activities significantly. Data reflect that outsourcing
activities help the firm in managing its logistic activities effectively by this way entity get
enough time to focus on core competencies of business. But for that cited firm is required to
invest adequate amount in outsourcing practices. It has to involve outsourcing partners in the
firm and have to develop relationship with them. This can support the entity in gaining success in
the market. If company enhance its budget and allocate budget properly to the outsourcing
activities then it will give benefit to the firm in smooth flow of goods and services and raising
company's performance.
Theme 7: 3PL can influence employees towards their performance for improving growth
31

Increase productivity 15 30%
Focus on core competencies 20 40%
Corporate restructuring 10 20%
Others 5 10%
Mean 12.5
Median 12.5
Mode 0
Interpretation: researcher has asked question with respondents that how 3PL can influence
employees towards their performance for improving growth of the company. On this question
30% answerers have given viewed that 3PL outsourcing practices help the firm in increasing
productivity of the business unit. It assists in managing flow of goods effectively so that
employees get enough time to pay more attention on core function of the firm. By this way
productivity of the entity gets increased. On other hand 40% participants have viewed that third
party logistic outsourcing is beneficial for organization in giving timing to employees so that
they can focus more on core competencies. Flow of goods from suppliers to warehouse and flow
of final product from company to customers is the typical and time consuming task. If workers
32

spend that huge time in monitoring flow of goods then they do not get time to enhance their
productivity capabilities. But 3PL is the best tool that can aid the firm in influencing employees
towards their performance for improving growth. 20% answerers have replied that 3PL is
beneficial for FMCG companies because by this way corporate can be restructured. As entity
gets enough time to monitor over core business activities this, firm can re-structure its activities
in such manner so that people can perform well and can mange their work significantly.
Furthermore, 10% participants have said that there are other benefits of third party logistic
outsourcing that influence employees towards their performance for improving growth. Mean
value of responses is 12.5, median is 12.5 and mode is zero. From the analysed data it can be
interpreted that 3PL outsourcing is more effective in giving time to employees so that they can
focus on core competencies and can perform well in organization. By this way they will be able
to contribute well in raising performance of business unit.
Theme 8: Main financial improvement that can be done through 3PL outsourcing
Improvement in sales revenues 10 20%
labour cost reduction 15 30%
Logistic cost reduction 18 36%
Return on assets improvement 7 14%
mean 12.5
median 12.5
mode 0
33

Interpretation: Researcher has asked about financial improvements that can be done with the
help of third party logistic outsourcing practices in the FMCG company. Then 20% answers have
said that this help in improving sales revenues of the company. On other hand 30% participants
have viewed that it supports in minimising labour cost to great extent. Furthermore, 36%
answerers have replied that it is helpful in reducing logistic cost of the firm. Whereas 14%
respondents have replied that it is beneficial on increasing return over assets improvements.
From the above data it can be interpreted that 3PL outsourcing practices is beneficial and help in
making financial improvements in business unit. It supports the firm in reducing its labour cost.
Companies those which do not adopt these services they have to hire extra staff members to
manage supply chain activities. Purchasing of raw material, supply of goods from supplier to
warehouse and then supply of end product to consumers is time taking task. In these activities
more employees have to work. By involving in third party logistic outsourcing activities firm can
reduce its logistic cost and labour cost to great extent. Outsourcing suppliers are the expert of
this industry they have good knowledge about these activities thus, they can manage flow of
goods and services easily. By this way organization can easily enhance its financial benefits to
great extent.
Theme 9: Outsourcing reduces risk of business
Strongly agree 15 30%
34

Agree 22 44%
Disagree 8 16%
Strongly disagree 5 10%
mean 12.5
median 11.5
mode 0
Interpretation: From the above data it is analysed that 30% respondents have viewed that they
are strongly agreed that outsourcing practices are helpful in minimizing risk of business. On
other hand 44% answerers have replied that they are agreed that outsourcing can be helpful in
minimizing risk of the entity. Whereas 16% people are disagreed that this practice does not
contribute in minimizing risk of the business. 10% participant have responded that they are
strongly disagreed with the point that outsourcing is not effective in minimizing risk of the
business. Mean value of responses is 12.5 and median is 11.5. From the above discussion it can
be interpreted that third party logistic services are able to reduce burden of the firm. By this way
company get enough time to concentrate on core competencies. When FMCG companies involve
outsourcing partners into firm then it assists in managing business operations well. Because
outsourcing partners have good knowledge about these services and they can manage flow of
35

goods effectively. By this way entity can be able to satisfy consumers and attracting them
towards the brand. This assist the firm in reducing operational cost and reducing cost of logistics.
That is the main reason that entity becomes able to manage risk and minimize issues of the firm.
3PL assists firms in expanding business across the world and enhancing its profitability by this
way financial risk of the firm can be managed well. Furthermore, outsourcing practices help in
addressing the issues in the market and deal with these problems accordingly. That is why
FMCG companies can be able to minimize their risk significantly.
Theme 10: Outsourcing can improve flexibility of the firm towards innovation
Strongly agree 28 56%
Agree 15 30%
Disagree 4 8%
Strongly disagree 3 6%
mean 12.5
median 9.5
mode 0
36

Interpretation: From the above data it is identified that 56% answerers have said that they are
strongly agreed that outsourcing improves flexibility of the firm towards innovation. On other
hand 30% respondents have said that they are agreed that third party logistic outsourcing assist in
brining innovative ideas in the firm. On other hand 8% participants have replied that they are
disagreed that outsourcing can improve flexibility of the entity towards innovation. Whereas 6%
answerers have responded that they are strongly disagreed with the point that it can not bring
innovation. Mean value of responses is 12.5 and median is 9.5, mode is zero. From the above
data it can be interpreted that 3PL outsourcing practices help FMCG companies in paying more
attention over their core competencies and concentrate more on core functions. By this way
employees can get more time to think creative in order to improve business performance of the
organization. That aids in improving flexibility and innovation so that entity can w well. If
people do not have enough time then it would be difficult for them to make changes in current
practices and try some unique ideas but when they have enough time and they can bring
innovative ideas in the business that assist in brining innovation in the organization. That is the
way that leads to improve flexibility in entity and encourage creative ideas. By this way Kerry
Group can be able to enhance efficiency of operation and can provide satisfactory services to
customers.
Interview 1700
Theme 1: Challenges for the FMCG company
Interpretation: When researcher has asked question in the interview about challenges faced by
company in implementing 3PL outsourcing in workplace then interviewee 1 has said that Kerry
group has limited financial resources and entity can not afford to spend high amount in
outsourcing. As for implementing outsourcing practices in business, entity has to involve
outsourcing partners and have to pay them huge amount. This increases financial burden on the
firm that is the major challenge that is faced by the organization face. On other hand interviewee
2 has replied that FMCG companies do not have adequate knowledge about outsourcing partners.
That is why they fail to involve right number of partners in the business unit. Interviewee 3 has
answered to the question is that changing customer demand create difficulties to examine the
correct outsourcing partners. Whenever needs of customers get changed then entity has to
involve new outsourcing partners. It can not build relationship with new outsourcing partners
37

immediately. That is why corporation has to face huge issues. All these interviewees have
different views about challenges that are faced by firm that attributed to outsourcing. Due to poor
knowledge about outsourcing partners, changing and poor funds availability create big troubles
for the FMCG companies that create difficulty for them to implement these practices in the firm
significantly. Kerry group has to look upon these problems and have to find ways so that these
problems can be minimized soon. If these issues have been ignored then entity may fail to
sustain in the market for longer duration and providing quality services to consumers. Customers
always prefer immediate and satisfactory services as outsourcing companies have good
knowledge about market thus they can manage these activities well. Thus, company has to pay
attention on these issues and have to work to resolve t problems.
Theme 2: Flexibility of current outsourcing practices
Interpretation: When researcher has asked in interview about current outsourcing practices and
its flexibility then interviewee 1 and 3 have replied that no current practices of outsourcing are
not flexible. Company does not look at needs of consumers thus, some times fails to provide
quality goods on time to them. Overall success of business is highly depended upon flow of
goods. If entity has no space to manage its warehousing process, transportation services then it
impacts on the business unit. Due to inflexibility in the operations impact on outsourcing
practices. Due to which Kerry group is unable to manage reparations and delivering goods on
time. Company dies not have flexibility that soi the main issue in business. Interviewee 2 has
replied that Kerry group is the FMCG industry that has flexibility in business but to some extent.
Due to limited resources it is unable to manage operations flexibly. That is why company does
not implement flexibility in business and manage outsourcing operations with tough rules and
regulations.
Theme 3: Kerry Group requires improvement in outsourcing
Interpretation: When researcher has asked question in interview that does Kerry group is
required to improve 3PL logistic outsourcings services then interviewee 1 has answered that no
company has stable outsourcing practices. It does not spend much amount in outsourcing
because it believes that it can enhance risk of business and can increasing costing of firm. But
interviewee 2 and 3 have answered that company is required to improve third party logistic
outsourcing services to great extent. The main reason of improving its outsourcing services is to
38

deliver goods and services on time to consumers. Many time company fails to deliver products
on time to its consumers. In such condition customers of company feel demotivate and their trust
get reduced to great extent. That is the main reason that sales of the cited firm is getting down
and it is affecting its revenues to great extent. Most of the consumers are moving towards other
competitors in order to get timely goods and services. As Kerry is required to improve its 3PL
logistic outsourcing services so that it can enhance satisfaction level of its clients and can retain
customers in organization for longer duration. From the above data it can be interpreted that
Kerry is definitely required to make changes in its third party logistic outsourcing services that
would be beneficial for the entity in managing its operations well and providing satisfactory
goods and services to the clients. If cited firm improve flexibility and make positive changes in
its 3PL outsourcing practices then it would be beneficial for the business in retaining consumers
in the firm for longer duration.
Theme 4: Impact of cost driven outsourcing
Interpretation: When researcher has asked question with respondents that does cost driven
outsourcing impact on performance then interviewee 1, 2, 3 all replied that yes it impacts on
business performance to great extent. The primary objective of business unit is to save cost and
enhance its revenues. If firm is able to manage outsourcing operations well then it will assist in
reducing cost of the entity. For that entity is required to improve communication with supply
chain partners. As outsourcing partners have good knowledge about the market and flow of good
practices thus, they can manage these operations well. By this way company can be able to
reduce cost of delivering goods from supplier to consumers. As recently cited firm has to invest
huge amount because it manages all operations by own and does not invest huge amount in 3PL
outsourcing. Cost driven outsourcing will be beneficial for the entity in managing operations
well and involving expert outsourcing partners so that overall goal of the firm can be achieved
and wastage can be minimized. This is the best way through which entity can expand its business
across the world and can involve the best outsourcing firms in the business.
Theme 5: Differences in out of logistic outsourcing and logistic kept in-house
Interpretation:
Theme 6: Effectiveness of 3PL outsourcing
39

Interpretation: When researcher has raised the question in the interview that why they think that
cited firm is required to get engaged in third party logistic outsourcing services. Then
interviewee 1 has answered that it is the best way through which employees will get enough time
and they will be able to focus more on the core competencies of business. This is the way that
can be better for the company because skilled labour will contribute well in core business
activities that will raise efficiency level of other major operational activities. This is the way
through which company can be able to meet with its objective. On other hand interviewee 2 has
answered that engaging in 3PL outsourcing will be beneficial for the entity in reducing its
logistic cost. As recently company does not invest in third party logistic outsourcing services and
it handles its outsourcing operations by own. By due to which it has to hire additional staff those
who can manage these activities, furthermore cited firm fail to deliver goods and services on
time to the consumers. Some times raw material fail to reach on time to the warehouse. Thus, if
it gets engaged in outsourcing services then it will be beneficial for the business unit in reducing
its logistic cost. By this way outsourcing partners those who have great knowledge about the
market, they will be able to get raw material from the suppliers those who offer material at lower
cost and they will be able to deliver goods to the end users on time. This will assist the firm in
reducing its logistic outsourcing cost. Furthermore, interviewee 3 has answered that outsourcing
services will be profitable for the firm and company definitely needs to get engaged in these
activities because it will help the organization in increasing inventory turnover rate. As recently
company is facing issue of wastage of inventory because employees have to manage multiple
task thus, they sometimes fail to keep correct record of available stock and order for next
material. If demand gets fluctuated ten existing stock gets wastage. Thus, company is required to
involve outsourcing partners into the business so that return on inventory can get increased. This
will help the entity in enhancing its revenues and sustaining in the market for longer duration.
Theme 7: 3PL outsourcing help in reducing financial burden
Interpretation: When researcher has asked with the respondent that whether 3PL outsourcing is
helpful in minimizing financial burden of the organization then interviewee 1 has answered that
yes third party logistic outsourcing is beneficial in order to minimize financial burden of the
company. With the help of outsourcing partners overall logistic cost of the business can get
minimized. That helps in controlling over cash outflow activities. Furthermore, interviewee 2
has given replied that 3PL outsourcing is beneficial for the business because by this way entity
40

can enhance return on assets. As company becomes able to gain high profit and utilize its assets
in effective manner. That assist the business unit in improving return on assets. Whereas
interviewee 3 has answered that It helps in raining sales volume in the organization. As
outsourcing partners have good knowledge about the logistic activities and they are the market
experts. By engaging outsourcing partners in the business FMCG companies can improve their
delivery timing and can provide quality products and services to the customers. Thus, it increases
satisfaction level of consumers and they frequently buy products of the firm. By this way entity
becomes able to raise its sales volume. That enhances revenues of the organization. By this way
overall financial burden of the firm can get reduced to great extent. From the above discussion it
can be interpreted that engaging into outsourcing activities can be better for the firm and can help
in controlling over its financial transaction. By this way organization can be able to manage its
operations well and can enhance its revues. By this way financial burden of the firm can be
controlled and expense can be minimized.
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
Conclusion
From the above study it can be concluded that outsourcing is the strategic application in
which companies take support of outside partners for performing their logistics activities. Earlier
employees of the business were responsible to handle the supply chain activities of business and
resources as well. But now these activities are being handled by the outsourcing partners. They
are the market experts and have good experience about this field. Company makes connection
with outsourcing partners in order to manage flow of goods and services from suppliers to
consumers. Third party logistic outsourcing is the process through which companies can involve
logistics experts in the business in order to manage essential tasks and get time to concentrate
more on core business activities. These are specialized firms that manage company’s
warehousing, transportation activities etc. It is not limited to the warehousing and transportation
but also includes inventory management, packaging, freight forwarding, cross- docking etc. 3PL
take care of all tasks related with supply chain and manage logistic operations of the business
units. Expertise of 3PL outsourcing providers encourages the firm to take advantage of their
expertise. These third party logistics providers are the knowledgeable people in the outsourcing
services. They have great knowledge about the latest technology. Thus, they are able to manage
inventory well and provide visibility to monitor entire outsourcing procedure of the firm
41

Companies that require such outsourcing services can enjoy the stress free transactions. This
helps in utilising company's resources effectively and gaining more benefits. It is the beneficial
tool that supports the firms in enter into the new region and expand business operations across
the world. These 3PL providers have strong chain and have strong distribution centres. This
chain supports them in quick shipping of goods and services across the world.
There are various issues that are faced by the FMCG companies. One of the main factor
that prohibited these firms are financial restriction, poor investment strategies, changing
customer demand etc. All these elements are the major factors that create trouble for the FMCG
companies and due to which firms fail to implement outsourcing practices effectively. If firms
involve outsourcing partners into the business then it will support the entities in reducing logistic
cost and improving return over investments.
From the above research it can be articulated that involvement of 3PL outsourcing
services is the beneficial for employee's safety and workers become able to perform well in the
workplace. It supports in reducing accidents and help in creating healthy workplace environment.
That is the beneficial thing because that enhances motivation level of workers and they perform
their duties well without any fear. Companies those which are applying 3PL outsourcing aspects
there employees are able to pay more attention on core business activities. These saved hours of
workers are used in marketing, developing relationship with consumers and development of new
ideas. This impacts positively in enhancing productivity of the firm and gaining long term
success to the business unit. Outsourcing companies are taking support of cloud based
technologies. These are effective techniques that help in improving efficiency level in the logistic
activities. This is the technology that supports in easy sharing of data that allow traceability of
item so that supply chain management can be done significantly. This supports employees in
performing well because they get right resources on time that supports in providing quality
products and services to the consumers and deliver it to the end users on time. By this way
workers become able to concentrate more on core business activities and performs core business
activities effectively. Thus, skilled workers put their hard efforts to enhance number of
consumers and market their products into different regions. That supports firm in expanding their
business and gaining competitive advantage.
42

Recommendation
There is required to make changes in the current logistic practices of the FMCG
companies, so that they can take advantage of outsourcing services. Recommendation to resolve
issues in third party logistic outsourcing for the betterment of employees performance of FMCG
company are as following:
 Kerry group should improve its fund allocation practices. It needs to allot adequate funds
for the logistic activities. By this way company will be able to get adequate time to pay
more attention on core business functions. That will help ion minimizing financial issues
of the cited firm.
 FMCG should conduct market research and have to pay attention on changing customer
demands. By this way it will be able to identify needs of consumers and accordingly will
be bale to involve experts outsourcing partners into the business. That will help the entity
in improving employees performance.
 FMCG companies should enhance their production rate then will support the business
unit in utilizing 3PL outsourcing services and minimizing cost of the firm to great extent.
43

REFERENCES
Books and Journals:
Bellingkrodt, S. and Wallenburg, C. M., 2015. The role of customer relations for innovativeness
and customer satisfaction: a comparison of service industries. The International Journal of
Logistics Management. 26(2). pp.254-274.
Bolumole, Y. A., Grawe, S. J. and Daugherty, P. J., 2016. Customer service responsiveness in
logistics outsourcing contracts: The influence of job autonomy and role clarity among on-
site representatives. Transportation Journal. 55(2). pp.124-148.
Daniel, B., Kumar, V. and Omar, N., 2018. Postgraduate conception of research methodology:
implications for learning and teaching. International Journal of Research & Method in
Education. 41(2). pp.220-236.
Daugherty, P., Bolumole, Y. and Schwieterman, M., 2017. Logistics Research: What a Long,
Strange Trip It's Been. Transportation Journal. 56(3). pp.213-226.
du Plessis, H. and Van Niekerk, A., 2014. A new GISc framework and competency set for
curricula development at South African universities. South African Journal of
Geomatics. 3(1). pp.1-12.
El Meladi, Y., Glavee-Geo, R. and Buvik, A., 2017. Textile and Clothing Exporting Firms’
Evaluation of LSPs’ Capabilities and Logistics Outsourcing Performance. Global
Intermediation and Logistics Service Providers. pp.185-207.
Etokudoh, E. P., Boolaky, M. and Gungaphul, M., 2017. Third Party Logistics Outsourcing: An
Exploratory Study of the Oil and Gas Industry in Nigeria. SAGE Open. 7(4).
pp.2158244017735566.
Faber, C. J. and et.al., 2016, June. Narrating the experiences of first-year faculty in the
engineering education research community: Developing a qualitative, collaborative
research methodology. In 2016 ASEE Annual Conference & Exposition.
Fountain, J. W., 2016. Outsourcing of Building Information Modeling (BIM) Among General
Contractors in the United States.
44

Gunasekaran, A. and et.al., 2015. Performance measures and metrics in outsourcing decisions: A
review for research and applications. International Journal of Production Economics. 161.
pp.153-166.
Humphries, B., 2017. Re-thinking social research: anti-discriminatory approaches in research
methodology. Taylor & Francis.
Jain, T. and Hazra, J., 2017, December. Capacity investments in logistics outsourcing. In
Industrial Engineering and Engineering Management (IEEM), 2017 IEEE International
Conference on (pp. 1441-1444). IEEE.
Kovach, M., 2015. Emerging from the margins: Indigenous methodologies. Research as
resistance: revisiting critical, Indigenous, and anti-oppressive approaches. pp.43.
Patil, S. and Wongsurawat, W., 2015. Information technology (IT) outsourcing by business
process outsourcing/information technology enabled services (BPO/ITES) firms in India:
A strategic gamble. Journal of Enterprise Information Management. 28(1). pp.60-76.
Payaro, A. and Papa, A. R., 2017. Logistics Outsourcing: Why Do Not Some Italian SMEs Adopt
the Externalization?. Asian Business Research. 2(2). pp.46.
Petryk, I., 2016. Principles of Business Process Management in Enterprises Using Outsourcing.
Przedsiębiorczość i Zarządzanie, 17(10, cz. 2 Zarządzanie w dobie ograniczonego
zaufania). pp.53-68.
Piecyk, M. I. and Björklund, M., 2015. Logistics service providers and corporate social
responsibility: sustainability reporting in the logistics industry. International Journal of
Physical Distribution & Logistics Management. 45(5). pp.459-485.
Rita, P. and Krapfel, R., 2015. Collaboration and competition in buyer-supplier relations: the role
of information in supply chain and e-procurement impacted relationships. In Assessing the
Different Roles of Marketing Theory and Practice in the Jaws of Economic Uncertainty
(pp. 98-105). Springer, Cham.
Salanta, I. and Popa, M., 2015. Managing the Risks of Failure in Outsourcing Logistics:
Evidence from Romania. Managerial Challenges of the Contemporary Society.
Proceedings. 8(2). pp.89.
45

Samgam, V. and Shee, H. K., 2017. Strategic outsourcing objectives drive 3PL selection criteria
in India. International Journal of Logistics Systems and Management. 27(1). pp.20-39.
Singh, R. K., Gunasekaran, A. and Kumar, P., 2017. Third party logistics (3PL) selection for cold
chain management: a fuzzy AHP and fuzzy TOPSIS approach. Annals of Operations
Research. pp.1-23.
Sunderland, N. and et.al., 2015. 1000 Voices: Reflective online multimodal narrative inquiry as a
research methodology for disability research.Qualitative Social Work. 14(1). pp.48-64.
Taylor, S. J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Vaioleti, T. M., 2016. Talanoa research methodology: A developing position on Pacific
research. Waikato Journal of Education. 12(1).
Verma, R., Koul, S. and Pai, S. S., 2016. Identifying profitable clientele using the analytical
hierarchy process. International Journal of Business and Systems Research. 10(2-4).
pp.220-237.
Wan, S. P. and et.al., 2015. An intuitionistic fuzzy linear programming method for logistics
outsourcing provider selection. Knowledge-Based Systems. 82. pp.80-94.
Wang, J. and et.al., 2018. A multihesitant fuzzy linguistic multicriteria decision‐making approach
for logistics outsourcing with incomplete weight information. International Transactions
in Operational Research. 25(3). pp.831-856.
Worthington, D. L. and Bodie, G. D., 2017. The sourcebook of listening research: Methodology
and measures. John Wiley & Sons.
Yang, Q. and et.al., 2016. Improving logistics outsourcing performance through transactional and
relational mechanisms under transaction uncertainties: Evidence from China. International
Journal of Production Economics. 175. pp.12-23.
Yeh, J. H. and et.al., 2017. Key account relationship management: the moderating effects of
relationship duration and transaction volume. The Service Industries Journal. pp.1-23.
46

Yoon, J., Yildiz, H. and Talluri, S. S., 2016. Risk Management Strategies in Transportation
Capacity Decisions: An Analytical Approach. Journal of Business Logistics. 37(4). pp.364-
381.
Zhang, X., Pan, J. and Zhang, C., 2016. Third party logistics provider service performance
evaluation based on triangular fuzzy TOPSIS. Natsional'nyi Hirnychyi Universytet.
Naukovyi Visnyk, (3). pp.140.
Online:
Impact of logistics outsourcing on the profitability of food processing industries. 2012. [Online].
Available through:
<http://www.dypatil.edu/schools/management/wp-content/uploads/2015/11/Impact-of-
Logistics-Outsourcing-on-the-Profitability-of-Food-Processing-Industries-A-Study-in-
Maharashtra-GAUTAM-TREHAN.pdf>.
The Impact of Strategic Outsourcing on Organizational Performance: A Case Study of Bidco
Africa Limited. 2016. [Online]. Available through:
<http://erepo.usiu.ac.ke/bitstream/handle/11732/2545/The%20Impact%20of%20Strategic
%20Outsourcing%20on%20rganizational%20Performance%20A%20Case%20Study
%20of%20Bidco%20Africa%20Limited.pdf?sequence=1&isAllowed=y>.
What Is Outbound Logistics?. 2015. [Online]. Available through:
<http://www.paragon-u.com/what-is-outbound-logistics>.
What is third party logistics (3PL). 2017. [Online]. Available through:
<https://startrack.com.au/insights/ecommerce-services/what-is-third-party-logistics>.
47

APPENDIX
Questionnaire
Since how long you are working in the Kerry Group plc?
 Less than one year
 between 2-3 years
 Between 3-5 years
 More than 5 years
Does Kerry Group plc implements third party logistic outsourcing practices?
 Yes
 No
Give rank to importance of third party logistic outsourcing for improving business performance?
 Excellent
 very good
 Average
 not good
Why 3PL is important for the FMCG companies?
 Improve customer services
 Improves distribution of goods
 manage import export activities properly
 Inventory management
Issue face by FMCG in effective implementation of outsourcing practices?
 Poor funds allocation
 Improper knowledge about outsourcing firms
 Changing customer demand
 Others
% of budget that is allotted by Kerry Group plc firm for 3PL outsourcing?
 0-20%
 20-40%
 40-60%
 More than 60%
How 3PL can influence employees towards their performance for improving growth?
48

 Increase productivity
 Focus on core competencies
 Corporate restructuring
 Others
What is main financial improvement that can be done through 3PL outsourcing?
 Improvement in sales revenues
 labour cost reduction
 Logistic cost reduction
 Return on assets improvement
Tick your answers?
 Outsourcing reduces risk of business
 Strongly agree
 Agree
 Disagree
 Strongly disagree
Outsourcing can improve flexibility of the firm towards innovation?
 Strongly agree
 Agree
 Disagree
 Strongly disagree
Interview
 What is the main challenge that is faced by firm that attributed to outsourcing?
 Does current outsourcing practice have flexibility in business?
 Does Kerry Group is required to improve its 3PL logistic outsourcing services?
 How cost driven outsourcing impact on performance of organization?
 What do you see the major difference in outcome between logistic outsourcing and
logistic kept in-house?
 Why do you think that FMCG companies are required to implement 3PL outsourcing
participles effectively?
 Do you think that 3PL outsourcing can help in reducing financial burden of entity, if yes
then why?
49