Outsourcing decisions of logistics function of the Hong Kong retail industry

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Outsourcing decisions of logistics function of the Hong Kong retail industry

 

Author: Fung, Po-yi Helen
Title: Outsourcing decisions of logistics function of the Hong Kong retail industry
Degree: M.B.A.
Year: 2002
Subject: Hong Kong Polytechnic University -- Dissertations
Retail trade -- China -- Hong Kong -- Management
Business logistics -- Management
Contracting out -- China -- Hong Kong
Department: Dept. of Management
Pages: 67 leaves ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1656060
URI: http://theses.lib.polyu.edu.hk/handle/200/1793
Abstract: Experience of foreign retailers proved that outsourcing of logistics service is a trend of practice. Retailers can benefit from the expertise of these service provides and also enjoy cost reduction. The findings of this research show that this is not the case in Hong Kong. Logistics is viewed as supporting functions to internal customers. The retailers in Hong Kong have preference in retaining in-house logistics functions. The main reason is for security of confidential information and better service to internal customers. They have also confirmed that on the supply side, there is insufficient qualified service provider, in terms of scale and specialist service to meet their needs. Although the big retailers have preference in retaining in-house logistics, majority of retailers in Hong Kong are small in scale. At the same time, although some retailers expressed that they are not satisfied with their service of the logistics service provider, they will continue outsource part of its logistics functions. Another reason for outsourcing is to maintain a safety boat for backup. The logistics service market is dynamic and unpredictable. There is business opportunity for the logistics service provider to explore. For big retailers who have already built up strong competence in logistics functions, they are also ready to expand business to serve smaller retailers or commercial customers with full scale logistics services.

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