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VOLUME 03 ISSUE 05 MAY 2020

Logistics outsourcing : A strategy for operational performance of the shipping industry in Nigeria
1IBIAMA, KENNETH ADONYE
M.Sc, FCImpt, MIinsTA, CMILT, Gnim
1FEDERAL POLYTECHNIC OF OIL AND GAS, BONNY, RIVERS STATE NIGERIA.
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PREAMBLE

Outsourcing of logistics services is one of the strategies which is becoming very common with many organizations today. Outsourcing is a popular practice in business whereby organizations move some of a company's internal activities and decision responsibilities to outside providers thus enhance their productivity in their operations and service delivery.

INTRODUCTION

Outsourcing of logistics services is one of the strategies that have become quite common with several organizations nowadays. Outsourcing could be a well-liked apply in business whereby organizations move a number of a firm's internal activities and call responsibilities to outside suppliers therefore enhance their productivity in their operations and repair delivery, (Chase, 2004). Logistics outsourcing practices embrace info management, transportation management, warehouse management, material handling management and inventory management (Forslund, 2012). The extremely competitive environments in conjunction with customers' demands for tailored merchandise and services has forced firms to ceaselessly judge, improve and reengineer their operations. nowadays organizations most important demands would be, maximizing logistics value by reducing business cost and lead time, rising service flexibility, responsiveness and responsibleness (Lee & Song, 2015). Operational performance improvement has been achieved by organizations that square measure exploitation logistics service providers within their operations as it’s become one in all the main strategies that firms are adapting to stay competitive in the current dynamic surroundings. House & amp; Stank, (2001), third-party logistics providers will facilitate a firm come through substantial ends up in its operational performance. As per (Muller, 1991) aassociate in nursing improvement within the delivery process, ensuing from the outsourcing process, may contribute towards competitive benefits, as contributed by the merchandise. Logistics outsourcing resulted in operational performance improvement through; decreased operating costs, improved client satisfaction, hyperbolic productivity, timely delivery of services to customer’s, reduced lead time and improved profits, quicker response to customer’s demands and use of contemporary technology in providing services (Mulama, 2012). Outsourcing all or a part of logistics function in a logistical supply chain to logistics service providers has currently become the norm across the trade.

KEY-WORDS

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VOLUME 03 ISSUE 05 MAY 2020

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