Factors Influencing Logistics Outsourcing in Pakistan

Abstract

The Freight Forwarding and Logistics industry plays a vital role in the overall economy of Pakistan.

The purpose of this study is to determine the factors that influence for outsourcing the logistics and at the same time performance of outsourcing has been evaluated with respect to Karachi, Pakistan. Three factors identified as Low Human Assets, Low Physical Assets and Partnership, all have a positive impact on logistics outsourcing and the firm performance especially in terms of Financial Benefit. Online survey was conducted and the data was obtained from a sample size of 165 from the seniority level of the manufacturing industry in Karachi. We measure the inner model by Smart PLS software to indicate the reliability of all factors that significant impact on logistics outsourcing practices. Reliability test was also performed which showed that our study is significant.

Keywords: Outsourcing, Low Physical Assets, Low Human Assets, Partnership, Logistics Outsourcing Practices and Financial Benefit