A system dynamics approach to logistics outsourcing policies and decisions

Abstract This paper is based on a revelatory single-case study that uses a system dynamics model to analyze the costs and policies of a distribution logistics outsourcing process (i.e., the warehousing and transportation activities) of a Brazilian consumer packaged goods (CPG) company. The model con...

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Main Authors: Raul Arellano Caldeira Franco, Hugo Tsugunobu Yoshida Yoshizaki, José Geraldo Vidal Vieira
Format: Article
Language:English
Published: Associação Brasileira de Engenharia de Produção (ABEPRO) 2016-06-01
Series:Production
Subjects:
Online Access:http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-65132016000200285&lng=en&tlng=en
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author Raul Arellano Caldeira Franco
Hugo Tsugunobu Yoshida Yoshizaki
José Geraldo Vidal Vieira
author_facet Raul Arellano Caldeira Franco
Hugo Tsugunobu Yoshida Yoshizaki
José Geraldo Vidal Vieira
author_sort Raul Arellano Caldeira Franco
collection DOAJ
description Abstract This paper is based on a revelatory single-case study that uses a system dynamics model to analyze the costs and policies of a distribution logistics outsourcing process (i.e., the warehousing and transportation activities) of a Brazilian consumer packaged goods (CPG) company. The model considers the costs before and after the outsourced operation startup and how these costs influence the net present value (NPV) of the process. The model’s findings suggest policies, such as the reduction of the ex-ante period and the ex-ante reactive and proactive monitoring of operations, to obtain optimal financial results. In addition, the model provides guidelines for the contract lengths and demonstrates that in the outsourcing process, the greatest gains result during periods of low inflation and low interest rates in a stable economy.
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language English
publishDate 2016-06-01
publisher Associação Brasileira de Engenharia de Produção (ABEPRO)
record_format Article
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spelling doaj-art-c059da89c2af4637a45b6aa95dd229ea2025-08-20T02:02:32ZengAssociação Brasileira de Engenharia de Produção (ABEPRO)Production1980-54112016-06-0126228530210.1590/0103-6513.131413S0103-65132016000200285A system dynamics approach to logistics outsourcing policies and decisionsRaul Arellano Caldeira FrancoHugo Tsugunobu Yoshida YoshizakiJosé Geraldo Vidal VieiraAbstract This paper is based on a revelatory single-case study that uses a system dynamics model to analyze the costs and policies of a distribution logistics outsourcing process (i.e., the warehousing and transportation activities) of a Brazilian consumer packaged goods (CPG) company. The model considers the costs before and after the outsourced operation startup and how these costs influence the net present value (NPV) of the process. The model’s findings suggest policies, such as the reduction of the ex-ante period and the ex-ante reactive and proactive monitoring of operations, to obtain optimal financial results. In addition, the model provides guidelines for the contract lengths and demonstrates that in the outsourcing process, the greatest gains result during periods of low inflation and low interest rates in a stable economy.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-65132016000200285&lng=en&tlng=enOutsourcingLogisticsDecision-makingInter-organizational relationshipsTransaction costs
spellingShingle Raul Arellano Caldeira Franco
Hugo Tsugunobu Yoshida Yoshizaki
José Geraldo Vidal Vieira
A system dynamics approach to logistics outsourcing policies and decisions
Production
Outsourcing
Logistics
Decision-making
Inter-organizational relationships
Transaction costs
title A system dynamics approach to logistics outsourcing policies and decisions
title_full A system dynamics approach to logistics outsourcing policies and decisions
title_fullStr A system dynamics approach to logistics outsourcing policies and decisions
title_full_unstemmed A system dynamics approach to logistics outsourcing policies and decisions
title_short A system dynamics approach to logistics outsourcing policies and decisions
title_sort system dynamics approach to logistics outsourcing policies and decisions
topic Outsourcing
Logistics
Decision-making
Inter-organizational relationships
Transaction costs
url http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-65132016000200285&lng=en&tlng=en
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