Th? 24 18 4 B?tt?r custom?r s?rvic?. 21 23

Th? r?spond?nts
r?pr?s?nt?d th? broad vari?ty of industry including various s?ctors lik?
Automobil?, ?ngin??ring, and M?tals ?tc. Majority of th? r?spond?nts w?r? from
automotiv? & ?ngin??ring s?ctor only as Pun? industrial ar?a is w?ll ?quipp?d
with automobil? compani?s & ?ngin??ring v?ndors for automobil? compani?s.

 

 

 

 

 

 

 

 

 

 

 

 

Functions outsourc?d by compani?s (R?spond?nts)

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Th? following tabl? shows th? d?tails
of functions which ar? outsourc?d by th? r?spond?nts

In th? qu?stionnair? r?spond?nts w?r?
ask?d about wh?th?r th?y outsourc? th? following function or not. Aft?r
comparing all th? r?spons?s from r?spond?nts w? found that war?housing,
transportation ar? th? two main functions which ar? outsourc?d by almost
compani?s follow?d by which ar? inv?ntory manag?m?nt, import ?xport proc?dural
assistanc? & custom cl?aring assistanc? thos? who d?al in int?rnational
trad?.

R?asons
for outsourcing logistics s?rvic?s

 

Following tabl? shows th? r?spons?s
of r?spond?nts for r?asons of outsourcing on a scal? of 1 to 3 i.?. l?ast
important (1), Important (2) & V?ry important (3).

By using w?ight?d av?rag? m?thod w?
can find out th? w?ight?d importanc? of ?ach r?ason of outsourcing logistics s?rvic?s.

Sampl?
Calculation

 

Function:
Conc?ntrat? on manufacturing proc?ss

L?ast Important
(1)

Important (2)

V?ry Important
(3)

0

14

36

 

W?ight?d
Av?rag? of R?spons?s

L?ast Important
(1)

Important (2)

V?ry Important
(3)

Total W?ight?d
Avg

0 x 1 = 0

14 x 2 = 28

36 x 3 = 108

136

 

Maximum w?ight?d av?rag? points will
b?: 50 × 3 = 150 P?rc?ntag? of importanc? = 136 ×150 / 100 = 90.67 %

 

Th? abov? information shows that th?
primary r?asons for th? compani?s to outsourc? th? logistics s?rvic?s ar? to
conc?ntrat? on manufacturing proc?ss, r?duction in logistics ?xp?nditur?, b?tt?r
inv?ntory turnov?r ratio follow?d by which r?st of r?asons ar? th?r?.

 

Tabl?
4
: R?spons?s of r?spond?nts for r?asons of outsourcing logistics s?rvic?s.

Sr. No.

R?ason For Outsourcing Logistics

L?ast Important (1)

Important (2) 

V?ry Important (3)

1

Conc?ntrat?
on manufacturing proc?ss

0

14

36

2

R?duction
of Logistics ?xp?nditur?

2

10

38

3

?nhancing
op?rations fl?xibility

8

24

18

4

B?tt?r
custom?r s?rvic?.

21

23

6

5

?limination
of nonproductiv? activiti?s.

4

34

10

6

?xposur?
to t?chnology

8

20

22

7

Growth
in t?rms of ?xpansion

10

33

7

8

?ff?ctiv?
us? of Capital inv?stm?nt.

12

24

14

9

B?tt?r
Inv?ntory turnov?r ratio.

6

12

32

10

B?n?fits
of outsourcing

14

25

11

11

Organizational
r?structuring

9

34

7

12

D?v?lopm?nt
of supply chain

5

27

18

13

Improv?m?nt
in profitability

3

41

6

 

Tabl? 5
: Importanc? of R?asons of Outsourcing
Logistics S?rvic?s

Sr. No.

R?ason For
Outsourcing Logistics

L?ast
Important (1)

Important
(2) 

V?ry
Important (3)

Total W?ight?d
Av?rag? Points

% of w?ight?d
av?rag? (out of 150)

1

Conc?ntrat? on
manufacturing proc?ss

0

14

36

136

91%

2

R?duction of Logistics ?xp?nditur?

2

10

38

136

91%

3

?nhancing op?rations fl?xibility

8

24

18

110

73%

4

B?tt?r custom?r s?rvic?.

21

23

6

85

57%

5

?limination of
non-productiv? activiti?s.

4

34

10

102

68%

6

?xposur? to t?chnology

8

20

22

114

76%

7

Growth in t?rms of ?xpansion

10

33

7

97

65%

8

?ff?ctiv? us? of Capital
inv?stm?nt.

12

24

14

102

68%

9

B?tt?r Inv?ntory turnov?r
ratio.

6

12

32

126

84%

10

B?n?fits of outsourcing

14

25

11

97

65%

11

Organizational r?structuring

9

34

7

98

65%

12

D?v?lopm?nt of supply
chain

5

27

18

113

75%

13

Improv?m?nt in
profitability

3

41

6

103

69%

Tabl? 6
: W?ight?d av?rag? points of r?asons for outsourcing

 

Impact of Third Party Logistics s?rvic?s

 

Following tabl? shows th? r?spons?s
tak?n from r?spond?nts about impact of third party logistics s?rvic?s on thr??
main param?t?rs as p?rformanc? of logistics function, Custom?r satisfaction &
satisfaction of ?mploy??s.

Using w?ight?d av?rag? m?thod w? will find out th? w?ight?d
av?rag? points for ?ach param?t?r and th?n find out th? p?rc?ntag? of w?ight?d
av?rag? points which will r?pr?s?nt th? ov?rall ?ff?ct of logistics outsourcing
s?rvic?s on abov? m?ntion?d param?t?rs.

Sampl? Calculations for

1) P?rformanc? of Logistics
Function:

W?ight?d av?rag? points
= (18 × 5) + (13 × 4) + (16 × 3) + (3 × 2) + (0 × 1)


90 + 52 + 48 + 6 + 0

 


196

 

Maximum w?ight?d av?rag? points
= 50 × 5 = 250

 

P?rc?ntag? of w?ight?d av?rag? 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 S?rvic?s

 

Th? abov? data shows that th?r? is
positiv? impact of third party logistics s?rvic?s on compani?s. Compani?s r?spond?d
that using third party logistics s?rvic?s ?nhanc?s satisfaction of ?mploy??s, p?rformanc?
of logistics function & custom?r satisfaction too.

Hypoth?sis
T?sting

 

For
t?sting hypoth?sis w? will us? chi squar? t?st. Th? chi-squar? t?st is a “goodn?ss
of fit” t?st: it answ?rs th? qu?stion of how w?ll do ?xp?rim?ntal data fit ?xp?ctations.

Th? chi-squar? (I) t?st is us?d to d?t?rmin? wh?th?r th?r?
is a significant diff?r?nc? b?tw??n th? ?xp?ct?d fr?qu?nci?s and th? obs?rv?d
fr?qu?nci?s in on? or mor? cat?gori?s. Do th? numb?rs of individuals or obj?cts
that fall in ?ach cat?gory diff?r significantly from th? numb?r you would ?xp?ct?
Is this diff?r?nc? b?tw??n th? ?xp?ct?d and obs?rv?d
du? to sampling ?rror, or is it a r?al diff?r?nc??

St?ps
in using chi squar? t?st:

1.   
Writ? th? obs?rv?d fr?qu?nci?s in
column O.

2.    Figur? th? ?xp?ct?d fr?qu?nci?s and
writ? th?m in column ?.

3.   
Us? th? formula to find th?
chi-squar? valu?.

4.   
Find th? d?gr?? of fr??dom (df)=
(N-1)

5.    Find th? tabl? valu? (consult th?
Chi Squar? Tabl?).

6.    If your chi-squar? valu? is ?qual to
or gr?at?r than th? tabl? valu?, r?j?ct th? null hypoth?sis: diff?r?nc?s in
your data ar? not du? to chanc? alon?.

Sr. No

Factors

V?ry Positiv?
(5)

Positiv? (4)

Av?rag? (3)

 N?gativ? (2)

 V?ry N?gativ? (1)

1

P?rformanc? of logistics
function

18

13

16

3

0

2

Custom?r Satisfaction

9

27

10

4

0

3

Satisfaction of ?mploy??s

17

22

11

0

0

Tabl? 7
: Impact of third party logistics s?rvic?s

 

 

 

 

 

 

 

 

 

 

Tabl?
8
: W?ight?d av?rag? points for impact of logistics s?rvic?s.

Sr. No

Factors

V?ry Positiv? (5)

Positiv? (4)

Av?rag? (3)

 N?gativ? (2)

 V?ry N?gativ?
(1)

Total W?ight?d Av?rag? Points

% of W?ight?d Av?rag?

1

P?rformanc?
of logistics function

18

13

16

3

0

196

78.4

2

Custom?r
Satisfaction

9

27

10

4

0

191

76.4

3

Satisfaction
of ?mploy??s

17

22

11

0

0

206

82.4

Functions
outsourc?d by compani?s (R?spond?nts)

 

Th? following tabl? shows th? obs?rv?d
r?spons?s from th? various r?spond?nts & ?xp?ct?d r?spons?s.

Chi squar? tabl? valu? at 95% l?v?l
of confid?nc? is 16.919. Th?
calculat?d chi squar? valu? (10.52)
is small?r than that of chi squar? tabl? valu?. H?nc? th? first hypoth?sis
about functions outsourc?d stands tru? that in pun? industrial ar?a primarily
war?housing, transportation & inv?ntory manag?m?nt ar? outsourc?d maximum.

Tabl?
9
: Obs?rv?d (Actual) r?spons?s coll?ct?d through qu?stionnair? & ?xp?ct?d r?spons?s

Sr. No

3PL p functions

No of r?spond?nts outsourcing function (obs?rv?d data)

No of r?spond?nts outsourcing function (?xp?ct?d data)

1

Managing
Inv?ntory

31

25

2

N?gotiation
of Rat?s

15

20

3

Ord?r
Proc?ssing

14

20

4

Distribution

9

15

5

Custom
Cl?aring Assistanc?

32

35

6

War?housing

43

45

7

?XIM

32

35

8

Transportation

44

45

9

V?hicl?
Consolidation

6

10

10

R?v?rs?
Logistics

28

35

 

Tabl?
10
: Chi squar? t?st for functions outsourc?d by r?spond?nts

Sr. No

3PL p functions

 

 

1

Managing
Inv?ntory

31

25

6

1.44

2

N?gotiation
of Rat?s

15

20

-5

1.25

3

Ord?r
Proc?ssing

14

20

-6

1.8

4

Distribution

9

15

-6

2.4

5

Custom
Cl?aring Assistanc?

32

35

-3

0.26

6

War?housing

43

45

-2

0.09

7

?XIM

32

35

-3

0.26

8

Transportation

44

45

-1

0.02

9

V?hicl?
Consolidation

6

10

-4

1.6

10

R?v?rs?
Logistics

28

35

-7

1.4

?2

10.52

Chi
squar? valu? ?2 = 10.52

D?gr??
of fr??dom df (N-1) = 10 – 1 = 9

 

Significanc?
L?v?l = 0.05

 

Tabl?
Valu? = 16.919

 

Chi
squar? valu? (10.52) is l?ss than
tabl? valu? (16.919) Oij

 

Chi Squar? T?st for R?asons of
Outsourcing S?rvic?s

 

Th?
following tabl? shows obs?rv?d & calculat?d w?ight?d av?rag? points for
various r?asons of outsourcing.

Chi
squar? tabl? valu? at 95% l?v?l of confid?nc? is 21.026. Th? calculat?d chi squar? valu? (17.50) is small?r than
that of chi squar? tabl? valu?. H?nc? th? s?cond hypoth?sis about r?asons of
outsourcing stands tru?
that in pun? industrial ar?a & th? compani?s primarily outsourc?s th?
logistics s?rvic?s to conc?ntrat? on manufacturing proc?ss, to r?duc? logistics
?xp?ns?s & to incr?as? inv?ntory turnov?r ratio.

Chi Squar? t?st for impact of
logistics outsourcing s?rvic?s

 

Th? following tabl? shows th? r?spons?s
of compani?s obtain?d from qu?stionnair? databas? & ?xp?ct?d on?.

Tabl?
11
: Obs?rv?d w?ight?d av?rag? points & ?xp?ct?d points for r?asons of
outsourcing logistics s?rvic?s.

Sr. No.

R?ason For Outsourcing Logistics

Calculat?d % of w?ight?d avg obtain?d from r?spond?nts,
Oij

?xp?ct?d % of w?ight?d avg obtain?d from r?spond?nts, ?ij

1

Conc?ntrat?
on manufacturing proc?ss

91%

95%

2

R?duction
of Logistics ?xp?nditur?

91%

95%

3

?nhancing
op?rations fl?xibility

73%

70%

4

B?tt?r
custom?r s?rvic?.

57%

80%

5

?limination
of non-productiv? activiti?s.

68%

80%

6

?xposur?
to t?chnology

76%

75%

7

Growth
in t?rms of ?xpansion

65%

75%

8

?ff?ctiv?
us? of Capital inv?stm?nt.

68%

60%

9

B?tt?r
Inv?ntory turnov?r ratio.

84%

95%

10

B?n?fits
of outsourcing

65%

80%

11

Organizational
r?structuring

65%

75%

12

D?v?lopm?nt
of supply chain

75%

80%

13

Improv?m?nt
in profitability

69%

75%

 

 

 

Chi
squar? valu? ?2
= 17.50                                                    

 

D?gr??
of fr??dom df  (N-1) = 13 – 1 = 12

 

 

 

Significanc?
L?v?l = 0.05

 

Tabl?
Valu? = 21.026

 

Chi
squar? valu? (17.50) is l?ss than
tabl? valu? (21.026)

 

Tabl?
12
:Chi squar? t?st calculations for r?asons of outsourcing logistics s?rvic?s

Sr. No.

R?ason For Outsourcing Logistics

 

 

 

1

Conc?ntrat?
on manufacturing proc?ss

91

95

-4

0.17

2

R?duction
of Logistics ?xp?nditur?

91

95

-4

0.17

3

?nhancing
op?rations fl?xibility

73

70

3

0.13

4

B?tt?r
custom?r s?rvic?.

57

80

-23

6.61

5

?limination
of non-productiv? activiti?s.

68

80

-12

1.80

6

?xposur?
to t?chnology

76

75

1

0.01

7

Growth
in t?rms of ?xpansion

65

75

-10

1.33

8

?ff?ctiv?
us? of Capital inv?stm?nt.

68

60

8

1.07

9

B?tt?r
Inv?ntory turnov?r ratio.

84

95

-11

1.27

10

B?n?fits
of outsourcing

65

80

-15

2.81

11

Organizational
r?structuring

65

75

-10

1.33

12

D?v?lopm?nt
of supply chain

75

80

-5

0.31

13

Improv?m?nt
in profitability

69

75

-6

0.48

?2

17.50

Tabl?
13
: Obs?rv?d r?spons?s & ?xp?ct?d r?spons?s for impact of logistics
outsourcing

Sr. No

Factors

Calculat?d % of w?ight?d avg points (obs?rv?d data)

?xp?ct?d % of w?ight?d avg points

1

P?rformanc?
of logistics function

78.4

95

2

Custom?r
Satisfaction

76.4

85

3

Satisfaction
of ?mploy??s

82.4

95

Tabl?
14
: Chi squar? t?st of impact of logistics outsourcing s?rvic?s

Sr. No

R?ason for outsourcing logistics

 

 

 

1

P?rformanc?
of logistics function

78.4

95

-16.6

2.9

2

Custom?r
Satisfaction

76.4

85

-8.6

0.87

3

Satisfaction
of ?mploy??s

82.4

95

-12.6

1.67

?2

5.44

 

Chi
squar? valu? ?2 = 5.44

D?gr?? of fr??dom df (N-1) = 3 – 1 =
2
Significanc? L?v?l = 0.05
Tabl? Valu? = 5.991

 

Chi
squar? valu? (5.44) is l?ss than
tabl? valu? (5.991)

Chi squar?
tabl? valu? at 95% l?v?l of confid?nc? is 5.991.
Th? calculat?d chi squar? valu? (5.44)
is small?r than that of chi squar? tabl? valu?. H?nc? th? third hypoth?sis
about impact of outsourcing stands tru?. In pun? industrial ar?a & th?
compani?s r?spond?d v?ry positiv?ly about outsourcing logistics s?rvic?s &
its b?n?fits.

 

Conclusion

 

On th? basis
of study conduct?d w? can conclud? that compani?s in Pun? industrial ar?a ar?
not compl?t?ly awar? of all th? functions of third party logistics provid?rs
and th?y ar? unawar? of th? b?n?fits of thos? s?rvic?s off?r?d by th? third
party logistics provid?rs. During th? study w? cam? to conclusion that most of
th? compani?s outsourc? only transportation & war?housing functions majorly
follow?d by which r?st of th? functions ar? outsourc?d.

Also, whil? conducting th? study w?
cam? across th? r?spond?nts r?spons?s about th? r?asons for outsourcing th?
logistics s?rvic?s & it is found that th? main r?asons for th? compani?s to
outsourc? th? logistics s?rvic?s is to conc?ntrat? on cor? comp?t?nci?s & r?duction
in cost. Compani?s ar? l?ast both?r about r?st of th? r?asons and b?n?fits.

Aft?r conducting th? study w? found
that compani?s’ p?rc?ption about th? us? of third party logistics s?rvic?s is v?ry
positiv?. According to th? statistics, compani?s found v?ry positiv? impact on ?mploy??
moral?. Logistics syst?m p?rformanc? is ?nhanc?d & custom?r satisfaction as
w?ll.

By summing all obs?rvations w? can
conclud? that th?r? is significant rol? which third party logistics provid?rs
ar? playing in pun? industrial ar?a. Still compani?s in pun? industrial ar?a
hav? not y?t ?xplor? all th? shad?s and b?n?fits of outsourcing logistics s?rvic?s.
Th? conc?rn issu? is to spr?ad mor? awar?n?ss about th? various functions of
logistics outsourcing & also th? b?n?fits of using th?s? functions.