A system dynamics approach to logistics outsourcing policies and decisions

Franco, Raul Arellano Caldeira; Yoshizaki, Hugo Tsugunobu Yoshida; Vieira, José Geraldo Vidal

doi:10.1590/0103-6513.131413

Cited by 3 publications

(10 citation statements)

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“…The model helps chain members to understand the behavior of the system with respect to various cost elements in different market scenarios. Franco et al (2015) present an SD model for analyzing the costs and policies of a logistics distribution subcontracting process. The model takes into account the costs before and after the start of the outsourcing operation and their influence on the net value of the process.…”

Section: System Dynamics and Supply Chainmentioning

confidence: 99%

A Model of Systems Dynamics for Physical Flow Analysis in a Distribution Supply Chain

Hamoudi

Boutarfaïa

Petiot

2021

Transport and Telecommunication Journal

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This article proposes a model of systems dynamics for the analysis and study of physical flows in a distribution logistics chain. The proposed model is a decision support tool that allows testing several scenarios in order to study the behavior of physical flows within a supply chain depending on the inventory and transport costs and taking into consideration the environmental issues through the integration of a CO2 tax in transport costs. The developed model can be used to analyze various scenarios and perform various “what-if” analyzes, as well as to answer questions about the long-term operation of distribution chains. The results show that logistic decisions and strategies taken at the supply chain level influence inventory and transport costs. They show also that the model is a well decision-support tool for calculating and analyzing transport and inventory costs. We first expose the methodology and the literature review. Next, we present in detail the structure of the model consisting of the causal loops diagram and stock and flow diagram. Finally, we discuss the results of the model.

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Section: System Dynamics and Supply Chainmentioning

confidence: 99%

A Model of Systems Dynamics for Physical Flow Analysis in a Distribution Supply Chain

Hamoudi

Boutarfaïa

Petiot

2021

Transport and Telecommunication Journal

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“…As mentioned earlier, the annual savings in storage cost ('AA j ') could be considered as a cash flow or positive annual income. It can be considered constant in terms of calculating the economic viability of each proposed solution (Franco et al, 2016).…”

Section: Economic and Financial Profitability Of Each Alternative Solmentioning

confidence: 99%

Analytical and economic methodology for storage of large heavyweight equipment in industrial processes

Hermoso-Orzáez

Cámara-Martínez

Rojas‐Sola

et al. 2019

Economic Research-Ekonomska Istraživanja

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Numerous studies concerning warehouse-design methodologies have been performed focused on the storage of products on pallets or of intermediate size and/or moderate weight loads. These studies, however, do not provide with optimal results for industries that work with equipment or objects of uncommon sizes and shapes and with large weights, which are difficult to move and involve high costs and complex operational actions, affecting to the production processes and interfering with the logistic processes or the supply-chain of a company. This study proposes an analytical methodology using economic and technical qualitative criteria that can be applied specifically to large and heavy equipment warehouses. Both quantitative aspects, such as availability and cost of space, and also qualitative considerations, such as flexibility requirements, impact on manufacturing process and risks associated, are evaluated. To determine an optimum implementation solution, several decision-making methods, such as Electra I & II and Analytic Hierarchy Process are employed with due consideration of multiple criteria. The results obtained are modulated and reinforced using a SWOT (strengths-weaknesses, opportunities-threats) and a Risk analysis to verify this single ultimate solution. The said process led to the establishment of a decision-making methodology suitable for any organization possessing large-scale storage systems.

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“…When logistics activities are outsourced, a company can acquire multiple benefits, such as client satisfaction (Mageto et al, 2018), better operation efficiency (Silva et al, 2019), minimum operation investment, operating cost reduction, flexibility increase, customer service level improvement, risk reduction linked to the development of knowledge and new technologies, innovation capability improvement (Marchet et al, 2018), access to many distribution networks and many more (Zailani et al, 2017); and not necessarily will the reduction in cost be the decisive one (Huang et al, 2019;Langley and Infosys, 2021, p. 15;Khan et al, 2017). The decision in logistics outsourcing also depends on the macro environment (De Oliveira Neto et al, 2018), location and taxation (Gerbl et al, 2015), the cultural environment (Thai et al, 2021), economical environment (Bandeira et al, 2015;Franco et al, 2016), technology (Min et al, 2016) and well-established government rules (Thai et al, 2021). In addition to these critical success factors, in emerging countries, average growth rates are higher than in industrialised countries (Klose, 2018) with high variations in inflation and interest rates (Franco et al, 2016), which are also important factors to consider in logistics outsourcing decision-making.…”

Section: Introductionmentioning

confidence: 99%

“…The decision in logistics outsourcing also depends on the macro environment (De Oliveira Neto et al, 2018), location and taxation (Gerbl et al, 2015), the cultural environment (Thai et al, 2021), economical environment (Bandeira et al, 2015;Franco et al, 2016), technology (Min et al, 2016) and well-established government rules (Thai et al, 2021). In addition to these critical success factors, in emerging countries, average growth rates are higher than in industrialised countries (Klose, 2018) with high variations in inflation and interest rates (Franco et al, 2016), which are also important factors to consider in logistics outsourcing decision-making. For example, India's changing business environment and economic growth place greater importance on third-party logistics (3PL) outsourcing (Samgam and Shee, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…Normally, research focuses on the criteria to select 3PL (Asian et al, 2019;Aguezzoul, 2014;Hwang et al, 2016), including environmental sustainability perspective and interdependencies among the evaluation and selected criteria (Raut et al, 2018). Some studies rely on outsourcing processes (Zhu et al, 2017;Franco et al, 2016). We can also find research that provides a methodology that quantifies the outsourcing logistics market (Pratavieira et al, 2021;Solakivi et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Evaluating logistics outsourcing: a survey conducted with Brazilian industries

Doratiotto¹,

Vieira

Silva

et al. 2022

BIJ

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PurposeThis research aims to evaluate the factors that influence logistics outsourcing, including the impact of logistics outsourcing on measuring companies' logistics performance. This research provides interactions among the various factors (constructs) such as “financial”, “collaboration and process characteristics”, “external influencer”, and “logistics performance”.Design/methodology/approachTo investigate the interaction between the constructs, structural equation modelling is proposed to understand what the relevant criteria are while outsourcing logistics. Data were acquired from surveys conducted with 129 managers from Brazilian companies in the industry sector.FindingsThe factor “collaboration and process characteristics” is what most influences the “logistics performance” of companies, highlighting the importance of managing contractors; and the “financial” factor also contributes to the logistic outsourcing decision.Research limitations/implicationsSome limitations of this study need to be clarified. First, the model could test the moderate and mediate aspects by using variables inspired on RBV and TCE. Second, the sample is relatively small and restricted to the Brazilian industries' case, although the results may be useful for other countries in the world. Third, the responses represent viewpoints of the people who work in the companies. To address this issue, the authors asked respondents to fill out the questionnaire from the perspective of the organisation.Practical implicationsMost 3PL come from developed countries and find different requirements in Brazil. Then, this new knowledge may help 3L providers better understand the needs of the local or foreign companies that operate in the local market. The measurement model may also help to construct a new organisational process, as it sheds light on the main elements necessary for gathering logistics performance outcomes.Originality/valueTo the best of the authors' knowledge, the literature lacks studies on the interaction among these logistics outsourcing constructs, mainly in emerging markets where significant growth opportunities have led to logistics activities being outsourced. The literature that examines the impact of these constructs on logistics performance is also limited. Therefore, this research contributes to providing a model that measures these impacts according to the company's point of view.

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A system dynamics approach to logistics outsourcing policies and decisions

Cited by 3 publications

References 40 publications

A Model of Systems Dynamics for Physical Flow Analysis in a Distribution Supply Chain

A Model of Systems Dynamics for Physical Flow Analysis in a Distribution Supply Chain

Analytical and economic methodology for storage of large heavyweight equipment in industrial processes

Evaluating logistics outsourcing: a survey conducted with Brazilian industries

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