Assessment Of The Practice Of Logistics Outsourcing To Third- Party Logistics Service Providers Case Of Exporters In The Leather Industry Of Addis Ababa

The purpose of this study is to assess the current logistics outsourcing practice of leatherrnexporting firms with the aim of identifying the logistical challenges that impederncompetitiveness in the global market. These are export profit margins tend to be low, oftenrnextremely low or even inexistent and also complicated customs procedures and delays arernalso quoted as major export constraints and also customer complaints as a result of notrndeliver on time and encounter unnecessary cost because of lack of safety and insecurity. Inrnthis study descriptive type of research is applied and to get relevant information about thernstudy both primary and secondary data were used. This research finding has shown thernindustry is facing some logistical challenges that would hinder the leather sector exportrncompetitiveness. To overcome outsourcing logistics challenges, outsourcing firms have tornactively manage their relationship with the third party logistics service providers, empowerrnthe outsourcing team through training, set proper selection criteria, indicate the scope of thernservice in written contract and follow up.rnKey Words: Logistics, Outsourcing, 3PLs, Leather Industry

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