Mohamed Sorogy

Applying the third-party logistics concept to improve business profitability: a study of the manufacturing industry in the uk

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• Mohamed Sorogy

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This dissertation aimed to critically investigate how UK manufacturing companies can employ 3PL services to enhance business profitability. A simple, cross-sectional sequential mixed methods research methodology was implemented with the qualitative phase being used to explain the findings of the quantitative phase, which was performed first. Data for the quantitative period were collected using an online questionnaire that was designed and administered through a Google survey (N= 416). At the same time, semi-structured interviews were performed via Zoom calls with senior executives and managers of UK manufacturing firms (N= 5). Descriptive statistics, a one-sample t-test, and stepwise regression were used for quantitative data analysis using SPSS while manual analysis of interview data was performed in Microsoft Excel. The results showed that transportation and fleet management were the services that UK manufacturing companies outsourced to the most significant extent while clearing and forward and inventory management were the services that were outsourced to the lowest degree. The reasons behind this trend included the level of risk involved in outsourcing a particular service, availability of 3PL providers offering the outsourcing service, and the cost involved. In terms of feasibility, all items were scored highly, although increased operational flexibility and significant reduction of operational costs ranked highest. Finally, the stepwise regression test revealed four statistically significant models with an overall prediction power of 20.1% on business profitability. The statistically significant predictor variables were a reduction of operational costs, increased operational flexibility, reduced fixed asset costs, and the gaining of external resources from 3PL service providers.

Article Subject Details

• Logistics management
• Supply chain

Article Keywords Details

• 3PL outsourcing
• Business profitability
• Third-party logistics
• UK manufacturing industry
• Logistics outsourcing

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