Outsourcing third party logistics services usage in the Namibian manufacturing industry.

Abstract

The aim of the study is to give a comprehensive understanding of the Namibian manufacturers’ current status of using third party logistics (3PL) services in Namibia. An exploratory survey was conducted to investigate the extent use of 3PL services by Namibian manufacturers, the reasons for Namibian manufacturers using 3PL service, the reasons for Namibian manufacturers not using 3PL services, the level of satisfaction of Namibia manufacturing firms using 3PL services, the organizational impact of using 3PL services on the Namibian manufacturers and the future plans of current 3PL users in Namibia’s manufacturing industry. The findings of this study were collected through the use of an e-mail survey questionnaire. The respondents are logistics managers working for the Namibian manufacturing firms that are listed on the membership list including 140 members of the Namibian Manufacturers Association (NMA). The data was analysed by using Excel program. The current study found out that more than 50% of the Namibian manufacturers outsource 3PL services. Namibian anufacturing companies that outsource indicated that cost reduction was the main reason for outsourcing. Overall, the user manufacturers are satisfied with the 3PL provider’s level of performance. In addition, the use of 3PL services will moderately increase in the future. However, 3PL providers need to be aware of this prospective development in the outsourcing logistic industry to improve their performance and commit to the service level set forth. In general, the Namibian manufacturers believe that their business benefits largely from the use of 3PL services in many areas of their firms.