Impression of Supply Chain Risk Management and Outsourcing Logistics on Supply Chain Performance and Business Performance on Telecom sector of Islamabad: An Empirical Study

Abstract

In my opinion, outsourcing the logistics function can help in pacing up the supply chain responsiveness. It helps in decreasing the risk factor in supply chain process and also helps in the efficiency of supply chain department. Companies who outsource logistics function are known to more efficient and also their lead time is less as compared to other companies. Outsourcing functions help in efficiency of other operations of the company as they do not have to focus on some of the functions so it also helps in increasing the efficiency and effectiveness of the company. Outsourcing logistic function helps in decreasing the risk factor of the company and hence helps to increase the overall performance of the company. The industry that was chosen for this research was Telecom Industry and the companies selected were Huawei, PTCL, Jazz and Ufone. Geographical region was limited to Islamabad for this study. These companies outsource some of the parts of their logistics function. It was proved that their efficiency has increased after they outsourced their logistics function. Moreover, these companies tend to be more proactive towards supply chain risks to manage and control them. These proactive approaches help supply chain department to perform well and business tends to be more profitable.