1. Those respondents quell those expansive mixed bag

1.    Extent of usage of services offered
by third party logistics service providers for carrying out specific logistics
activities;

2.   
Reasons for outsourcing;

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3.    The impact of using third party
logistics services on logistics performance, customer satisfaction and employee
morale.

4.    The benefits of using third party
logistics services on specific business objectives;

5.    The overall satisfaction with third
party logistics service providers; and

6.    The future plans of current users of
third party logistics services.

 

Secondary Data

Secondary data will be acquired from
different sources such as Newspapers, Magazines, Journals, electronic media
etc.

Table 3
: Logistics functions outsourced by respondent

Sir
No

3PL
Functions

No
of Respondents

%

1

Managing Inventory

31

62

2

Negotiations on rates

15

30

3

Order Processing

14

28

4

Distribution

9

18

5

Custom Clearing Assistance

32

64

6

Warehousing

43

86

7

EXIM

32

64

8

Transportation

44

88

9

Vehicle Consolidation

6

12

10

Reverse Logistics

28

56

 

Data Analysis

Respondents
Profile

Those
respondents quell those expansive mixed bag about business including Different
parts in Automobile, Engineering, Also Metals and so forth. Lion’s share of the
respondents were from car & building division just Similarly as Pune
streamlined range is great prepared with auto organizations & building
vendors to car organizations..

 

 

 

 

 

 

 

 

 

 

 

 

Functions outsourced by companies
(Respondents)

The afterward table shows the capacity of functions which are
outsourced by the respondents

In the check respondents were asked about
whether they outsource the afterward action or not. After comparing all the responses
from respondents we begin that warehousing, busline are the two capital
functions which are outsourced by about companies followed by which are account
management, acceptation consign procedural abetment & custom allowance
abetment those who accord in all-embracing trade.

Reasons
for outsourcing logistics services

Following table shows the responses
of respondents for reasons of outsourcing on a scale of 1 to 3 i.e. least
important (1), Important (2) & Very important (3).

 

By using weighted average method we
can find out the weighted importance of each reason of outsourcing logistics
services.

Sample
Calculation

Function:
Concentrate on manufacturing process

Least
Important (1)

Important (2)

Very
Important (3)

0

14

36

 

Weighted
Average of Responses

Least
Important (1)

Important (2)

Very
Important (3)

Total
Weighted Avg

0 x 1 = 0

14 x 2 = 28

36 x 3 = 108

136

 

Maximum weighted average points will
be: 50 × 3 = 150 Percentage of importance = 136 ×150 / 100 = 90.67 %

 

The aloft advice shows that the
primary affidavit for the companies to outsource the acumen casework are to
apply on accomplishment process, abridgement in acumen expenditure, bigger
account about-face arrangement followed by which blow of affidavit are there..

 

Table
4
: Responses of respondents for reasons of outsourcing logistics services.

Sr. No.

Reason For Outsourcing Logistics

Least Important (1)

Important (2) 

Very Important (3)

1

Concentrate
on manufacturing process

0

14

36

2

Reduction
of Logistics Expenditure

2

10

38

3

Enhancing
operations flexibility

8

24

18

4

Better
customer service.

21

23

6

5

Elimination
of nonproductive activities.

4

34

10

6

Exposure
to technology

8

20

22

7

Growth
in terms of expansion

10

33

7

8

Effective
use of Capital investment.

12

24

14

9

Better
Inventory turnover ratio.

6

12

32

10

Benefits
of outsourcing

14

25

11

11

Organizational
restructuring

9

34

7

12

Development
of supply chain

5

27

18

13

Improvement
in profitability

3

41

6

 

Table 5
: Importance of Reasons of Outsourcing
Logistics Services

Sr. No.

Reason For
Outsourcing Logistics

Least
Important (1)

Important
(2) 

Very
Important (3)

Total
Weighted Average Points

% of weighted
average (out of 150)

1

Concentrate on
manufacturing process

0

14

36

136

91%

2

Reduction of Logistics
Expenditure

2

10

38

136

91%

3

Enhancing operations
flexibility

8

24

18

110

73%

4

Better customer service.

21

23

6

85

57%

5

Elimination of
non-productive activities.

4

34

10

102

68%

6

Exposure to technology

8

20

22

114

76%

7

Growth in terms of
expansion

10

33

7

97

65%

8

Effective use of Capital
investment.

12

24

14

102

68%

9

Better Inventory turnover
ratio.

6

12

32

126

84%

10

Benefits of outsourcing

14

25

11

97

65%

11

Organizational
restructuring

9

34

7

98

65%

12

Development of supply
chain

5

27

18

113

75%

13

Improvement in
profitability

3

41

6

103

69%

Table
6
: Weighted average points of reasons for outsourcing

 

Impact of Third Party Logistics
services

 

Emulating table indicates the reactions made starting with
respondents something like effect from claiming outsider logistics
administrations on three principle parameters Likewise execution about
logistics function, client fulfillment & fulfillment about representatives.

Using weighted average method we will find out the weighted
average points for each parameter and then find out the percentage of weighted
average points which will represent the overall effect of logistics outsourcing
services on above mentioned parameters.

Sample Calculations for

1) Performance of Logistics
Function:

Weighted average points
= (18 × 5) + (13 × 4) + (16 × 3) + (3 × 2) + (0 × 1)


90 + 52 + 48 + 6 + 0

 


196

 

Maximum weighted average points
= 50 × 5 = 250

 

Percentage of weighted average points
= 196 × 100 / 250 = 78.4 %

Where,
O is the observed Frequency in each category
E is the expected frequency
 

 

 

 

Chart No 5: Impact of Third Party
Logistics Services

Those over information indicates that there may be sure
effect of outsider logistics benefits once organizations. Organizations
responded that utilizing outsider logistics benefits enhances fulfillment about
employees, execution about logistics capacity & client fulfillment a
really.

Hypothesis
Testing

 

For
testing hypothesis we will use chi square test. The chi-square test is a
“goodness of fit” test: it answers the question of how well do experimental
data fit expectations.

The chi-square (I) test is used to
determine whether there is a significant difference between the expected
frequencies and the observed frequencies in one or more categories. Do the
numbers of individuals or objects that fall in each category differ
significantly from the number you would expect? Is this difference between the
expected and observed due to sampling error, or
is it a real difference?

Steps in using chi square test:

1.   
Write the observed frequencies in
column O.

2.    Figure the expected frequencies and
write them in column E.

3.   
Use the formula to find the
chi-square value.

4.   
Find the degree of freedom (df)=
(N-1)

5.    Find the table value (consult the
Chi Square Table).

6.    If your chi-square value is equal to
or greater than the table value, reject the null hypothesis: differences in
your data are not due to chance alone.

Sr. No

Factors

Very Positive
(5)

Positive (4)

Average (3)

 Negative (2)

 Very Negative (1)

1

Performance of logistics
function

18

13

16

3

0

2

Customer Satisfaction

9

27

10

4

0

3

Satisfaction of Employees

17

22

11

0

0

Table
7
: Impact of third party logistics services

 

 

 

 

 

 

 

 

 

 

Table
8
: Weighted average points for impact of logistics services.

Sr. No

Factors

Very Positive (5)

Positive (4)

Average (3)

 Negative (2)

 Very Negative
(1)

Total Weighted Average Points

% of Weighted Average

1

Performance
of logistics function

18

13

16

3

0

196

78.4

2

Customer
Satisfaction

9

27

10

4

0

191

76.4

3

Satisfaction
of Employees

17

22

11

0

0

206

82.4

Functions
outsourced by companies (Respondents)

The following table shows the
observed responses from the various respondents & expected responses.

Chi square table value at 95% level
of confidence is 16.919. The
calculated chi square value (10.52)
is smaller than that of chi square table value. Hence the first hypothesis
about functions outsourced stands true that in pune industrial area primarily
warehousing, transportation & inventory management are outsourced maximum.

 

Table
9
: Observed (Actual) responses collected through questionnaire & Expected
responses

Sr. No

3PL p functions

No of respondents outsourcing function (observed data)

No of respondents outsourcing function (expected data)

1

Managing
Inventory

31

25

2

Negotiation
of Rates

15

20

3

Order
Processing

14

20

4

Distribution

9

15

5

Custom
Clearing Assistance

32

35

6

Warehousing

43

45

7

EXIM

32

35

8

Transportation

44

45

9

Vehicle
Consolidation

6

10

10

Reverse
Logistics

28

35

 

Table
10
: Chi square test for functions outsourced by respondents

Sr. No

3PL p functions

 

 

1

Managing
Inventory

31

25

6

1.44

2

Negotiation
of Rates

15

20

-5

1.25

3

Order
Processing

14

20

-6

1.8

4

Distribution

9

15

-6

2.4

5

Custom
Clearing Assistance

32

35

-3

0.26

6

Warehousing

43

45

-2

0.09

7

EXIM

32

35

-3

0.26

8

Transportation

44

45

-1

0.02

9

Vehicle
Consolidation

6

10

-4

1.6

10

Reverse
Logistics

28

35

-7

1.4

?2

10.52

Chi
square value ?2 = 10.52

Degree
of freedom df (N-1) = 10 – 1 = 9

 

Significance
Level = 0.05

 

Table
Value = 16.919

 

Chi
square value (10.52) is less than
table value (16.919) Oij

 

Chi Square Test for Reasons of
Outsourcing Services

 

The
following table shows observed & calculated weighted average points for
various reasons of outsourcing.

Chi
square table value at 95% level of confidence is 21.026. The calculated chi square value (17.50) is smaller than
that of chi square table value. Hence the second hypothesis about reasons of
outsourcing stands true
that in pune industrial area & the companies primarily outsources the
logistics services to concentrate on manufacturing process, to reduce logistics
expenses & to increase inventory turnover ratio.

Chi Square test for impact of
logistics outsourcing services

 

The following table shows the
responses of companies obtained from questionnaire database & expected one.

Table
11
: Observed weighted average points & expected points for reasons of
outsourcing logistics services.

Sr. No.

Reason For Outsourcing Logistics

Calculated % of weighted avg obtained from respondents,
Oij

Expected % of weighted avg obtained from respondents,
Eij

1

Concentrate
on manufacturing process

91%

95%

2

Reduction
of Logistics Expenditure

91%

95%

3

Enhancing
operations flexibility

73%

70%

4

Better
customer service.

57%

80%

5

Elimination
of non-productive activities.

68%

80%

6

Exposure
to technology

76%

75%

7

Growth
in terms of expansion

65%

75%

8

Effective
use of Capital investment.

68%

60%

9

Better
Inventory turnover ratio.

84%

95%

10

Benefits
of outsourcing

65%

80%

11

Organizational
restructuring

65%

75%

12

Development
of supply chain

75%

80%

13

Improvement
in profitability

69%

75%

 

 

 

Chi
square value ?2
= 17.50                                                          

 

Degree
of freedom df  (N-1) = 13 – 1 = 12

 

 

 

Significance
Level = 0.05

 

Table
Value = 21.026

 

Chi
square value (17.50) is less than
table value (21.026)

 

Table
12
:Chi square test calculations for reasons of outsourcing logistics services

Sr. No.

Reason For Outsourcing Logistics

 

 

 

1

Concentrate
on manufacturing process

91

95

-4

0.17

2

Reduction
of Logistics Expenditure

91

95

-4

0.17

3

Enhancing
operations flexibility

73

70

3

0.13

4

Better
customer service.

57

80

-23

6.61

5

Elimination
of non-productive activities.

68

80

-12

1.80

6

Exposure
to technology

76

75

1

0.01

7

Growth
in terms of expansion

65

75

-10

1.33

8

Effective
use of Capital investment.

68

60

8

1.07

9

Better
Inventory turnover ratio.

84

95

-11

1.27

10

Benefits
of outsourcing

65

80

-15

2.81

11

Organizational
restructuring

65

75

-10

1.33

12

Development
of supply chain

75

80

-5

0.31

13

Improvement
in profitability

69

75

-6

0.48

?2

17.50

Table
13
: Observed responses & expected responses for impact of logistics
outsourcing

Sr. No

Factors

Calculated % of weighted avg points (observed data)

Expected % of weighted avg points

1

Performance
of logistics function

78.4

95

2

Customer
Satisfaction

76.4

85

3

Satisfaction
of Employees

82.4

95

Table
14
: Chi square test of impact of logistics outsourcing services

Sr. No

Reason for outsourcing logistics

 

 

 

1

Performance
of logistics function

78.4

95

-16.6

2.9

2

Customer
Satisfaction

76.4

85

-8.6

0.87

3

Satisfaction
of Employees

82.4

95

-12.6

1.67

?2

5.44

 

Chi square value ?2 = 5.44

Degree of freedom df (N-1) = 3 – 1 = 2 Significance Level = 0.05
Table Value = 5.991

 

Chi square value (5.44)
is less than table value (5.991)

Chi
square table value at 95% level of confidence is 5.991. The calculated chi square value (5.44) is smaller than that of chi square table value. Hence the
third hypothesis about impact of outsourcing stands true. In pune industrial
area & the companies responded very positively about outsourcing logistics
services & its benefits.

 

 

Conclusion

 

On the groundwork from claiming investigation directed we
camwood finish up that organizations for Pune modern territory would not
totally mindful of every last one of capacities for outsider logistics
suppliers and they are unconscious of the profits of the individuals benefits
advertised Eventually Tom’s perusing the outsider logistics suppliers.
Throughout the investigation we went to Determination that A large portion of
the organizations outsource best transportation & warehousing capacities
majorly taken after Toward which are of the capacities are outsourced.

Also, same time directing the ponder we went crosswise over
those respondents reactions around those purposes behind outsourcing those
logistics benefits & it will be found that the primary purposes behind the
organizations on outsource the logistics administrations may be on focus on
center competencies & diminishment clinched alongside expense.
Organizations are any rate trouble over rest of the reasons Also reductions.

Following leading the examine we discovered that companies’
recognition something like the utilization of outsider logistics
administrations will be really sure. As stated by the statistics, organizations
discovered really certain sway for Worker spirit. Logistics framework execution
is improved & client fulfillment too.

Eventually
Tom’s perusing summing know perceptions we might reason that there will be huge
part which outsider logistics suppliers need aid playing Previously, pune
modern territory. Still organizations to Pune modern zone bring not yet investigate
every last one of shades & profits of outsourcing logistics
administrations. The concern issue will be should spread additional
consciousness around the different capacities for logistics outsourcing & additionally
those profits of utilizing these works

x

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