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 manufacturing 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.

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