LOGISTICS SERVICE PROVIDER SELECTION CRITERIA FOR COMPANIES

Year 2016, Volume: 3 Issue: 2, 163 - 175, 30.06.2016

Nagihan Aydin Murat Koseoglu

Abstract

Companies were working labor intensive and the processes like sales, manufacturing, warehousing, transportation were running by themselves traditionally in the past. However highly competitive environment requires to be much more professional about the aforementioned processes today. Therefore to be innovative and to maintain continuous developments have become an obligation for companies. But this approach is quite costly when considered for all the processes in a company.Wide spread use of outsourcing within the last ten years, with the contributions of developments in the information and communication systems, has alleviated the overall costs on businesses. In this way all operations maintained more quickly, reliable, and economical by providing also the customer satisfaction. Outsourcing decisions are strategic decisions and there are also risks as well as the advantages. Therefore analyses need to be done before taking these kinds of strategic decisions. The ability of using information technology for the existed service provider is one of the most important selection criteria.  The details that are not taken into account while selecting the service provider may cause significant costs. In this context the importance of outsourcing and the criteria for selecting service providers is examined in this study. The study is done by evaluating the data obtained from company interviews by content analysis. As a result, fixed price guarantee, being a popular company, appreciated position in the sector, having experiences in the industry and information technology abilities identified as the important criteria during the selection of service providers for the companies.

 

Keywords

Outsourcing, service providers, information technology, third party logistics

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