The Impact of Procurement Outsourcing Practices on Supply Chain Performance of MNCS: Evidence from Pakistan

Abstract

This study is focused mainly on identifying the impact of procurement outsourcing practices and supply chain performance in MNCs of Pakistan. This study has considered warehousing services, distribution and logistics services, consultancy services and inventory management as independent variables. Whereas, supply chain performance has been considered as the dependent variable in this study. However, this study has finalized MNCs of Pakistan to testify the relationship between variables mentioned above. The major emphasis in this study has been on assessing the relationship between warehousing services, distribution and logistics services, consultancy services and inventory management (independent variables) and supply chain performance (dependent variable) in MNCs of Pakistan. To prove this relationship, a survey has been conducted through an adopted structured questionnaire regarding this literature, in which employees working in FMCGs of Pakistan, have been requested to share their experiences by filling the questionnaires. Then, to identify the results on data gathered from the respondents, statistical instruments have been used. Some of the statistical instruments used in this study includes descriptive frequencies, reliability, correlation, regression, etc. Results derived through statistical instruments have shown that there exists a significant positive relationship between warehousing services, distribution and logistics services, consultancy services and inventory management (independent variables) and supply chain performance (dependent variable) in MNCs of Pakistan. Conclusively, it can be said that procurement outsourcing practices positively impact supply chain performance of MNCs in Pakistan.