The Impact of the logistics outsourcing of activities of Supply chain in Pharmaceutical industry in Karachi

Authors

  • Naveed Hussain Awan
  • Muhammad Shahbaz Khan

Abstract

The main focus of the supply chain is the internal and external business integration to maximize the profit and provide better service to ultimate customers. Most of the companies are going towards outsourcing of their major operation for getting competitive advantages in marketplace to achieve global supply chain success. However, the development of logistical infrastructure does not support the supply chain & logistics operations.This study focuses on four issues: (a) does subscription to a logistics service provide cost saving benefits to the company? (b) what are the effects of this subscription on the supply chain from production to the end-user? (c) what are the effects of the subscription on the company's distribution activities and performance, and finally (d) does this subscription provide the organization with a strategic advantage?A list of pharmaceutical companies was drawn from the Pakistan Pharmaceuticals Manufacturers' Association and a closed-ended questionnaire was emailed to responsible officials in the supply chain departments. The gathered data was tested using multiple regression approach. The significance of variables and Principles Components Analysis were used to reduce data redundancy.It was concluded that the impact of logistics outsourcing is to change "cost propositions" into "value propositions". Activities like operations and supply chain are increasingly utilizing logistics outsourcing as an "opportunity" rather than "cost".

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Published

2015-12-01

Issue

Vol. 10 No. 2 (2015): Market Forces Research Journal Volume 10 No 2

Section

Articles

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