Document Type Master's Dissertation Author Meredith, Guy URN etd-03132010-170936 Document Title The value creation characteristics essential in the strategic outsource to third party logistic providers within the automotive industry Degree MBA Department Gordon Institute of Business Science Supervisor
Advisor Name Title Dr P Tobin Supervisor Keywords
- automotive industry and trade
Date 2010-03-13 Availability unrestricted Abstract
Many companies are questioning the value created from logistics outsourcing. This is especially evident in contract logistics (specialised warehousing), given the increased commoditisation of transportation and distribution today. A clear need emerged to understand the value creation characteristics at play between third party logistics (3PL) providers and clients, and this formed the basis for this research. More specifically, the research sought to identify the elements driving the quality and functionality of value creation.
The research focused on the South African automotive industry limited to Original Equipment Manufacturers (OEMís) that had outsourced, were currently outsourcing or were planning to outsource their specialised warehousing. The research consisted of a phased approach in which key industry players (clients and 3PLís) were interviewed to understand and expand on the nature of the problem. A questionnaire was then sent out to the OEMís and quantitative analysis was undertaken on the data collected to answer the stated research propositions
It was found that client satisfaction was achieved through long term strategic relationships with 3PLís rather than a short term transactional approach. The value creation that was driving client satisfaction was being achieved through behaviour that sought stronger relationships, cooperation and strategic partnering with each other. Although there was a clear understanding on what the value creation characteristics were, the execution was unclear. Overall, the majority of OEMís that took part in this study indicated satisfaction with their 3PL providers.
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Please cite as follows:
Meredith, GA 2008, The value creation characteristics essential in the strategic outsource to third party logistic providers within the automotive industry, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03132010-170936/ >G10/52/mh
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