The Impact of Outsourcing Transportation to Third Party Providers on Transport Costs in SMEs. A Case Study of Alutech · Electronic Theses and Dissertations

Author

Dirwai, Natasha

Title

The Impact of Outsourcing Transportation to Third Party Providers on Transport Costs in SMEs. A Case Study of Alutech

Abstract

To maximize production and logistical control, large industrial enterprises previously found it helpful to vertically integrate supplier operations and distribution activities. Modern businesses, however, place a significant amount of reliance on suppliers and outsourced services that assist in the production process in one way or another. The study's goal was to ascertain how transport outsourcing affected organizational costs using Alutech Investments as a case study. In order to demonstrate the causal relationship between the variables in this case, outsourcing and costs, a descriptive and exploratory research design were used. This study used a mixed research methodology which triangulated the qualitative data from interviews and questionnaire survey. The quantitative method involved gathering and analyzing quantitative data, such as trends in the expenses associated with outsourcing. On the other hand, during the interview sessions and questionnaire distribution, a qualitative technique was employed to record certain comments from the respondents that were pertinent to the study. Data was gathered through questionnaires, and SPSS (20.0) was utilized to analyze it. The management staff of Alutech Investments were the target population, including managers from the accounting and logistics departments as well as other departments that collaborate closely with the procurement department. Tables and basic descriptive statistics like pie charts and graphs were used to analyze the data. This study came to the conclusion that transport outsourcing has a positive impact on the organizational costs after conducting a thorough literature review and data analysis. Basing on the study's findings, outsourcing transportation led to low operating expenses, including lower maintenance costs for fleets, lower investments in new fleet, lower insurance costs, and lower labor (driver) costs. This demonstrated a positive relationship between outsourcing and business costs. In order to properly assess the success of transportation outsourcing in terms of cost-cutting, conclusions and recommendations were drawn from the analysis' findings.

Date

2023

Publisher

BUSE

Keywords

Outsourcing Transportation

Supervisor

N/A