MPACT OF LOGISTIC OUTSOURCING ON EFFECTIVENESS OF SUPPLY CHAIN ACTIVITES" A CASE STUDY ON ENGRO FOODS LTD ( EFL)

Abstract

Purpose- The core emphasis ofthis study is on evaluating and analyzing impact of logistics outsourcing on effectiveness ofsupply chain activities through a case study on ENGRO FOODS LTD (EFL). The research evaluates how an organization opts to use 3PL and how it can help the company to reduce the costs associated with logistics activities followed by higher profits and increased sales volumes. It also helps in evaluating the factors that can be considered by an FMCG ifthey want to go for utilizing outsourcing services Methodology/sample- The study comprises of analysis of survey questions that were distributed amongst the sample size of 100 employees. Their responses are analyzed in detail. All respondents were chosen from EFL. Moreover, interview findings were also analyzed in the light of literature. Four interviews were conducted from the top management of Engro Foods. Findings- The analysis and comparative results clearly indicate that outsourcing logistics do help a company to create efficiency and effectiveness in its supply chain and other business operations. It was also concluded that there is a significance cost reduction by outsourcing supply chain activities to 3PL. Also, outsourcing can help a company in utilizing best expert resources and technology by outsourcing provider. Practical Implications- Results obtained from this research will help potential researchers to understand and evaluate the impact ofoutsourcing logistics on supply chain management. Moreover, it will also help in analyzing companies to have a cost benefit analysis whether outsourcing of logistics is beneficial in the long run