Outsourcing has become a popular trend in the last two decades and has been applied in both non-essential and critical business functions. It has been viewed as a vital source of competitive advantage and is expected to remain an important component in future business strategies. Over the past few years, the outsourcing of logistics functions in particular has shown strong growth. Thus, an abundance of research on the outsourcing of logistics is available. However, there has been little research on the outsourcing of material handling activities as a sub-component of logistics, nor its effect on a company’s operational performance. The purpose of this treatise is to determine the effects of outsourcing a South African automotive company’s material handling activities on its operational performance. It further aims to compare the company’s expected outcomes for outsourcing with actual outcomes. In addition, the factors which contributed positively and negatively to the operation of the outsourced material handling activities at the company, are established. The automotive company in this study is situated in Port Elizabeth, but due to confidentiality reasons the name of the company is not mentioned in the study. The study consists of a literature review on the background of outsourcing, outsourcing theories, outsourcing trends, important outsourcing considerations and gaps in outsourcing research. Primary data, collected through the use of a questionnaire to determine the effects outsourcing has on the company’s operational performance, is collected, reported and analysed in the study. The performance criteria used to determine these effects are: cost; delivery speed and reliability; flexibility; quality; the outsourcing relationship and the management of the outsourcing relationship. The study results reveal that the operational performance of the company remained the same after outsourcing.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8936 |
| Date | January 2014 |
| Creators | Dolley-Ryneveld, Mieshkah |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xv, 132 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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