Logistics outsourcing, its motives and the level of logistics costs in manufacturing and trading companies operating in Finland

Tomi Solakivi*, Juuso Töyli, Lauri Ojala

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

20 Citations (Scopus)

Abstract

This article explores the various aspects of logistics outsourcing in companies operating in Finland. The aim is to identify the connection between outsourcing, its motives and logistics costs. The data comprise a survey sample of 299 manufacturing and trading firms. Descriptive statistical analyses, analysis of variance and factor analysis were applied. Transport activities are outsourced to a large extent. The majority of companies manage most other logistics operations in-house. The outsourcing of product customisation, inventory management and warehousing is expected to become more common in the future. Cost savings together with flexibility and customer service were found to be the major motives for outsourcing. A connection between logistics costs and logistics outsourcing was identified: companies with higher levels of outsourcing are experiencing lower levels of logistics costs compared to those with lower levels of outsourcing or none at all.

Original languageEnglish
Pages (from-to)388-398
Number of pages11
JournalProduction Planning and Control
Volume24
Issue number4-5
DOIs
Publication statusPublished - 1 Apr 2013
MoE publication typeA1 Journal article-refereed

Keywords

  • Finland
  • logistics costs
  • logistics outsourcing
  • outsourcing motives

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