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Sustainable efforts, procurement outsourcing, and channel co-opetition in emerging markets
Transportation Research Part E: Logistics and Transportation Review ( IF 10.6 ) Pub Date : 2020-05-07 , DOI: 10.1016/j.tre.2020.101960
Baozhuang Niu , Zihao Mu

Emerging markets have witnessed the logistics volume surge along with economic growth, which also brings environmental issues such as packaging waste. Therefore, many responsible logistics service providers (LSPs) are observed to put efforts in developing sustainable logistics. Such efforts improve the LSP’s brand image to expand the market potential, and benefit the original equipment manufacturers (OEMs) who use the LSP’s logistics service. In this paper, we consider an OEM and a LSP’s preferred outsourcing structures by incorporating the LSP’s sustainable efforts and the competition with the OEM when it has the self-branded business. The introduction of sustainable efforts alter the LSP’s cost structure, and eventually, the supply chain parties’ preferences over the OEM’s procurement outsourcing. For the OEM, the bundled outsourcing (outsourcing both procurement and logistics functions to the LSP) does not necessarily yield a lower procurement cost than only outsourcing the logistics, because the LSP possesses sufficient service pricing flexibility. Interestingly, the LSP prefers the OEM’s bundled outsourcing when the OEM’s brand image advantage is either not significant or very significant. The driving force is the tradeoff between the profits from product sales and outsourcing services. Lastly, we compare the environmental performances under alternative outsourcing structures, showing the simultaneous improvement of the OEM’s profits, the LSP’s profits, and the environmental performance is achievable when the OEM outsources the bundled functions of procurement and logistics.



中文翻译:

新兴市场的可持续发展,采购外包和渠道合作

新兴市场见证了物流量随经济增长而激增,这也带来了环境问题,例如包装废弃物。因此,观察到许多负责任的物流服务提供商(LSP)致力于发展可持续物流。这些努力改善了LSP的品牌形象,扩大了市场潜力,并使使用LSP物流服务的原始设备制造商(OEM)受益。在本文中,我们通过结合LSP的可持续努力和与OEM开展自有品牌业务时的竞争来考虑OEM和LSP的首选外包结构。引入可持续性工作会改变LSP的成本结构,并最终改变供应链各方对OEM采购外包的偏好。对于OEM,捆绑的外包(将采购和物流功能都外包给LSP)并不一定比仅将物流外包产生更低的采购成本,因为LSP具有足够的服务定价灵活性。有趣的是,当OEM的品牌形象优势不显着或非常显着时,LSP倾向于OEM的捆绑外包。驱动力是产品销售利润与外包服务之间的权衡。最后,我们比较了替代外包结构下的环境绩效,显示了OEM利润,LSP利润的同时提高,并且当OEM外包捆绑的采购和物流功能时可以实现环境绩效。

更新日期:2020-05-07
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