1. 12 10 Reverse Logistics 28 56

1.    Extent of usage of services offeredby third party logistics service providers for carrying out specific logisticsactivities;2.   Reasons for outsourcing;3.

    The impact of using third partylogistics services on logistics performance, customer satisfaction and employeemorale.4.    The benefits of using third partylogistics services on specific business objectives;5.

    The overall satisfaction with thirdparty logistics service providers; and6.    The future plans of current users ofthird party logistics services. Secondary DataSecondary data will be acquired fromdifferent sources such as Newspapers, Magazines, Journals, electronic mediaetc.Table 3: Logistics functions outsourced by respondent Sir No 3PL Functions No of Respondents % 1 Managing Inventory 31 62 2 Negotiations on rates 15 30 3 Order Processing 14 28 4 Distribution 9 18 5 Custom Clearing Assistance 32 64 6 Warehousing 43 86 7 EXIM 32 64 8 Transportation 44 88 9 Vehicle Consolidation 6 12 10 Reverse Logistics 28 56  Data AnalysisRespondentsProfileThoserespondents quell those expansive mixed bag about business including Differentparts in Automobile, Engineering, Also Metals and so forth. Lion’s share of therespondents were from car & building division just Similarly as Punestreamlined range is great prepared with auto organizations & buildingvendors to car organizations.

.            Functions outsourced by companies(Respondents)The afterward table shows the capacity of functions which areoutsourced by the respondentsIn the check respondents were asked aboutwhether they outsource the afterward action or not. After comparing all the responsesfrom respondents we begin that warehousing, busline are the two capitalfunctions which are outsourced by about companies followed by which are accountmanagement, acceptation consign procedural abetment & custom allowanceabetment those who accord in all-embracing trade.Reasonsfor outsourcing logistics servicesFollowing table shows the responsesof respondents for reasons of outsourcing on a scale of 1 to 3 i.e.

leastimportant (1), Important (2) & Very important (3). By using weighted average method wecan find out the weighted importance of each reason of outsourcing logisticsservices.SampleCalculationFunction:Concentrate on manufacturing process Least Important (1) Important (2) Very Important (3) 0 14 36  WeightedAverage of Responses Least Important (1) Important (2) Very Important (3) Total Weighted Avg 0 x 1 = 0 14 x 2 = 28 36 x 3 = 108 136  Maximum weighted average points willbe: 50 × 3 = 150 Percentage of importance = 136 ×150 / 100 = 90.67 % The aloft advice shows that theprimary affidavit for the companies to outsource the acumen casework are toapply on accomplishment process, abridgement in acumen expenditure, biggeraccount about-face arrangement followed by which blow of affidavit are there.. Table4: Responses of respondents for reasons of outsourcing logistics services.

Sr. No. Reason For Outsourcing Logistics Least Important (1) Important (2)  Very Important (3) 1 Concentrate on manufacturing process 0 14 36 2 Reduction of Logistics Expenditure 2 10 38 3 Enhancing operations flexibility 8 24 18 4 Better customer service. 21 23 6 5 Elimination of nonproductive activities. 4 34 10 6 Exposure to technology 8 20 22 7 Growth in terms of expansion 10 33 7 8 Effective use of Capital investment. 12 24 14 9 Better Inventory turnover ratio.

6 12 32 10 Benefits of outsourcing 14 25 11 11 Organizational restructuring 9 34 7 12 Development of supply chain 5 27 18 13 Improvement in profitability 3 41 6  Table 5: Importance of Reasons of OutsourcingLogistics Services Sr. No. Reason For Outsourcing Logistics Least Important (1) Important (2)  Very Important (3) Total Weighted Average Points % of weighted average (out of 150) 1 Concentrate on manufacturing process 0 14 36 136 91% 2 Reduction of Logistics Expenditure 2 10 38 136 91% 3 Enhancing operations flexibility 8 24 18 110 73% 4 Better customer service. 21 23 6 85 57% 5 Elimination of non-productive activities. 4 34 10 102 68% 6 Exposure to technology 8 20 22 114 76% 7 Growth in terms of expansion 10 33 7 97 65% 8 Effective use of Capital investment.

12 24 14 102 68% 9 Better Inventory turnover ratio. 6 12 32 126 84% 10 Benefits of outsourcing 14 25 11 97 65% 11 Organizational restructuring 9 34 7 98 65% 12 Development of supply chain 5 27 18 113 75% 13 Improvement in profitability 3 41 6 103 69% Table 6 : Weighted average points of reasons for outsourcing  Impact of Third Party Logisticsservices Emulating table indicates the reactions made starting withrespondents something like effect from claiming outsider logisticsadministrations on three principle parameters Likewise execution aboutlogistics function, client fulfillment & fulfillment about representatives.Using weighted average method we will find out the weightedaverage points for each parameter and then find out the percentage of weightedaverage points which will represent the overall effect of logistics outsourcingservices on above mentioned parameters.Sample Calculations for 1) Performance of LogisticsFunction:Weighted average points = (18 × 5) + (13 × 4) + (16 × 3) + (3 × 2) + (0 × 1)= 90 + 52 + 48 + 6 + 0 = 196 Maximum weighted average points = 50 × 5 = 250 Percentage of weighted average points = 196 × 100 / 250 = 78.

4 % Where, O is the observed Frequency in each category E is the expected frequency       Chart No 5: Impact of Third PartyLogistics ServicesThose over information indicates that there may be sureeffect of outsider logistics benefits once organizations. Organizationsresponded that utilizing outsider logistics benefits enhances fulfillment aboutemployees, execution about logistics capacity & client fulfillment areally. HypothesisTesting Fortesting hypothesis we will use chi square test. The chi-square test is a”goodness of fit” test: it answers the question of how well do experimentaldata fit expectations.The chi-square (I) test is used todetermine whether there is a significant difference between the expectedfrequencies and the observed frequencies in one or more categories. Do thenumbers of individuals or objects that fall in each category differsignificantly from the number you would expect? Is this difference between theexpected and observed due to sampling error, oris it a real difference? Steps in using chi square test:1.   Write the observed frequencies incolumn O.

2.    Figure the expected frequencies andwrite them in column E.3.   Use the formula to find thechi-square value.4.   Find the degree of freedom (df)=(N-1)5.

    Find the table value (consult theChi Square Table).6.    If your chi-square value is equal toor greater than the table value, reject the null hypothesis: differences inyour data are not due to chance alone. Sr.

No Factors Very Positive (5) Positive (4) Average (3)  Negative (2)  Very Negative (1) 1 Performance of logistics function 18 13 16 3 0 2 Customer Satisfaction 9 27 10 4 0 3 Satisfaction of Employees 17 22 11 0 0 Table 7 : Impact of third party logistics services           Table8: Weighted average points for impact of logistics services. Sr. No Factors Very Positive (5) Positive (4) Average (3)  Negative (2)  Very Negative (1) Total Weighted Average Points % of Weighted Average 1 Performance of logistics function 18 13 16 3 0 196 78.4 2 Customer Satisfaction 9 27 10 4 0 191 76.4 3 Satisfaction of Employees 17 22 11 0 0 206 82.

4 Functionsoutsourced by companies (Respondents)The following table shows theobserved responses from the various respondents & expected responses.Chi square table value at 95% levelof confidence is 16.919. Thecalculated chi square value (10.52)is smaller than that of chi square table value. Hence the first hypothesisabout functions outsourced stands true that in pune industrial area primarilywarehousing, transportation & inventory management are outsourced maximum.

 Table9: Observed (Actual) responses collected through questionnaire & Expectedresponses Sr. No 3PL p functions No of respondents outsourcing function (observed data) No of respondents outsourcing function (expected data) 1 Managing Inventory 31 25 2 Negotiation of Rates 15 20 3 Order Processing 14 20 4 Distribution 9 15 5 Custom Clearing Assistance 32 35 6 Warehousing 43 45 7 EXIM 32 35 8 Transportation 44 45 9 Vehicle Consolidation 6 10 10 Reverse Logistics 28 35  Table10: Chi square test for functions outsourced by respondents Sr. No 3PL p functions     1 Managing Inventory 31 25 6 1.44 2 Negotiation of Rates 15 20 -5 1.25 3 Order Processing 14 20 -6 1.8 4 Distribution 9 15 -6 2.

4 5 Custom Clearing Assistance 32 35 -3 0.26 6 Warehousing 43 45 -2 0.09 7 EXIM 32 35 -3 0.26 8 Transportation 44 45 -1 0.

02 9 Vehicle Consolidation 6 10 -4 1.6 10 Reverse Logistics 28 35 -7 1.4 ?2 10.52 Chisquare value ?2 = 10.52Degreeof freedom df (N-1) = 10 – 1 = 9 SignificanceLevel = 0.

05 TableValue = 16.919 Chisquare value (10.52) is less thantable value (16.919) Oij Chi Square Test for Reasons ofOutsourcing Services Thefollowing table shows observed & calculated weighted average points forvarious reasons of outsourcing.Chisquare table value at 95% level of confidence is 21.026. The calculated chi square value (17.50) is smaller thanthat of chi square table value.

Hence the second hypothesis about reasons ofoutsourcing stands truethat in pune industrial area & the companies primarily outsources thelogistics services to concentrate on manufacturing process, to reduce logisticsexpenses & to increase inventory turnover ratio.Chi Square test for impact oflogistics outsourcing services The following table shows theresponses of companies obtained from questionnaire database & expected one.Table11: Observed weighted average points & expected points for reasons ofoutsourcing logistics services.

Sr. No. Reason For Outsourcing Logistics Calculated % of weighted avg obtained from respondents, Oij Expected % of weighted avg obtained from respondents, Eij 1 Concentrate on manufacturing process 91% 95% 2 Reduction of Logistics Expenditure 91% 95% 3 Enhancing operations flexibility 73% 70% 4 Better customer service. 57% 80% 5 Elimination of non-productive activities.

68% 80% 6 Exposure to technology 76% 75% 7 Growth in terms of expansion 65% 75% 8 Effective use of Capital investment. 68% 60% 9 Better Inventory turnover ratio. 84% 95% 10 Benefits of outsourcing 65% 80% 11 Organizational restructuring 65% 75% 12 Development of supply chain 75% 80% 13 Improvement in profitability 69% 75%    Chisquare value ?2= 17.50                                                            Degreeof freedom df  (N-1) = 13 – 1 = 12   SignificanceLevel = 0.05 TableValue = 21.026 Chisquare value (17.

50) is less thantable value (21.026) Table12:Chi square test calculations for reasons of outsourcing logistics services Sr. No. Reason For Outsourcing Logistics       1 Concentrate on manufacturing process 91 95 -4 0.17 2 Reduction of Logistics Expenditure 91 95 -4 0.17 3 Enhancing operations flexibility 73 70 3 0.13 4 Better customer service.

57 80 -23 6.61 5 Elimination of non-productive activities. 68 80 -12 1.

80 6 Exposure to technology 76 75 1 0.01 7 Growth in terms of expansion 65 75 -10 1.33 8 Effective use of Capital investment. 68 60 8 1.07 9 Better Inventory turnover ratio. 84 95 -11 1.27 10 Benefits of outsourcing 65 80 -15 2.

81 11 Organizational restructuring 65 75 -10 1.33 12 Development of supply chain 75 80 -5 0.31 13 Improvement in profitability 69 75 -6 0.48 ?2 17.50 Table13: Observed responses & expected responses for impact of logisticsoutsourcing Sr. No Factors Calculated % of weighted avg points (observed data) Expected % of weighted avg points 1 Performance of logistics function 78.

4 95 2 Customer Satisfaction 76.4 85 3 Satisfaction of Employees 82.4 95 Table14: Chi square test of impact of logistics outsourcing services Sr. No Reason for outsourcing logistics       1 Performance of logistics function 78.4 95 -16.6 2.9 2 Customer Satisfaction 76.4 85 -8.

6 0.87 3 Satisfaction of Employees 82.4 95 -12.6 1.

67 ?2 5.44  Chi square value ?2 = 5.44Degree of freedom df (N-1) = 3 – 1 = 2 Significance Level = 0.05Table Value = 5.991 Chi square value (5.44)is less than table value (5.991)Chisquare table value at 95% level of confidence is 5.

991. The calculated chi square value (5.44) is smaller than that of chi square table value. Hence thethird hypothesis about impact of outsourcing stands true. In pune industrialarea & the companies responded very positively about outsourcing logisticsservices & its benefits.  Conclusion On the groundwork from claiming investigation directed wecamwood finish up that organizations for Pune modern territory would nottotally mindful of every last one of capacities for outsider logisticssuppliers and they are unconscious of the profits of the individuals benefitsadvertised Eventually Tom’s perusing the outsider logistics suppliers.

Throughout the investigation we went to Determination that A large portion ofthe organizations outsource best transportation & warehousing capacitiesmajorly taken after Toward which are of the capacities are outsourced. Also, same time directing the ponder we went crosswise overthose respondents reactions around those purposes behind outsourcing thoselogistics benefits & it will be found that the primary purposes behind theorganizations on outsource the logistics administrations may be on focus oncenter competencies & diminishment clinched alongside expense.Organizations are any rate trouble over rest of the reasons Also reductions. Following leading the examine we discovered that companies’recognition something like the utilization of outsider logisticsadministrations will be really sure. As stated by the statistics, organizationsdiscovered really certain sway for Worker spirit. Logistics framework executionis improved & client fulfillment too.

EventuallyTom’s perusing summing know perceptions we might reason that there will be hugepart which outsider logistics suppliers need aid playing Previously, punemodern territory. Still organizations to Pune modern zone bring not yet investigateevery last one of shades & profits of outsourcing logisticsadministrations. The concern issue will be should spread additionalconsciousness around the different capacities for logistics outsourcing & additionallythose profits of utilizing these works

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