Original Research

Convergence of logistics planning and execution in outsourcing

Angela A. D’amato, Sipho Kgoed, Grant Swanepoel, Jacobus Walters, Adri Drotskie, Peter J. Kilbourn
Journal of Transport and Supply Chain Management | Vol 9, No 1 | a159 | DOI: https://doi.org/10.4102/jtscm.v9i1.159 | © 2015 Angela A. D’amato, Sipho Kgoed, Grant Swanepoel, Jacobus Walters, Adri Drotskie, Peter J. Kilbourn | This work is licensed under CC Attribution 4.0
Submitted: 26 August 2014 | Published: 10 June 2015

About the author(s)

Angela A. D’amato, Department of Transport and Supply Chain Management, University of Johannesburg, South Africa
Sipho Kgoed, Department of Business Management, University of Johannesburg, South Africa
Grant Swanepoel, Department of Transport and Supply Chain Management, University of Johannesburg, South Africa
Jacobus Walters, Department of Transport and Supply Chain Management, University of Johannesburg, South Africa
Adri Drotskie, Department of Business Management, University of Johannesburg, South Africa
Peter J. Kilbourn, Department of Transport and Supply Chain Management, University of Johannesburg, South Africa


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Abstract

Background: Logistics service providers (LSPs) are becoming increasingly involved in their clients’ businesses. Beyond just providing vehicles and buildings, LSPs are now becoming involved with knowledge-related work that is connected to the traditional services provided.

Objectives: To investigate the likelihood and potential value of LSPs extending their range of services to their clients by means of a convergence of planning and execution activities.

Method: In the research through a literature review and empirical study presented here, attention is given to the practical impact that convergence planning and execution functions have on business success, as well as how selected clients of an LSP (referred to in this article as logistics company A or LCA) perceive the impact of increased integration of LCA within its businesses. The results should assist LCA and other LSPs considering the same objective to ascertain the opportunities and key requirements associated with a strategy to converge planning and execution activities for their clients.

Results: The study found that the vast majority of respondents see value in the convergence of planning and execution activities.

Conclusion: Such convergence will be challenging, owing to the importance of the planning function for clients, as well as key collaborative and measurement requirements that will have to be put in place for successful business integration.


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