…179
Identification of Key Risk Factors for Logistics
Outsourcing - A Case of Retailing Industry in Taiwan
Ming-Chih Tsai, Shu-Chun Hung, and…
…Chia-Shing Han
Abstract
Logistics outsourcing has become a broad business solution for competitiveness.
The benefits of being associated with third party…
…logistics include reduced logistics
investment, improved logistics performance and enhanced core competences of bu-
siness. However, logistics outsourcing…
…might also lead to some unwanted events
and impacts, namely outsourcing risk, which has been increasingly concerned by
the commissioners in their…
…outsourcing decision. The risk issue has not been well
addressed in previous studies and empirical evidences were few seen. Therefore,
this study aims to…
…construct a risk analysis model for logistics outsourcing, based on
qualitative risk assessment.
As with generic risk definition, the risk model consists…
…of two important ele-
ments, including the occurrence of unwanted events (failures) when outsourcing
and the corresponding business losses. In the…
…failures as well. In combination of these two risk ele-
ments, contract-related events lead to 76.4% of the total outsourcing risk, whereas
the remaining…
…two events account for 20.2% and 3.4%, respectively. The risk analy-
sis information can be used to justify outsourcing decision and mitigate the…
…ongoing
outsourced activity.
Keywords: Logistics Outsourcing, Risk Analysis, Analytic Network Process
Ming-Chih Tsai; Shu-Chun Hung, and Chia-Shing…
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