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This study is on effectiveness of outsourcing logistics function in construction firm,
a case study of Interbeton Company Limited. Logistics managing and controlling the
flow of goods, information and other resource like product, service and people, from
the source of production to the customer.
Its aim was to find out the strategic reasons for outsourcing, customer satisfaction
with regard to the outsourcing logistics function and monitor performance of the
service provider. Therefore, concern in this research was on effectiveness of
outsourcing logistics in the construction firm in Tanzania, in particular, Interbeton
Company Limited. To achieve the objective of this study 25 questionnaires’ were
distributed to construction firm and outsourcing firm. Viewed based on 20
respondents were collected including open discussion with several people
participating in the construction activities in Interbeton Iringa.
Findings revealed that outsourcing logistics function was faced with several
obstacles to their performance. It was noted that poor performance of outsourcing
firm, basing on sample taken, and the average performance of the outsourcing firm
found to be 75%. This is very high with regard to the importance of the logistics
function; factors that influence the poor performance of the outsourcing firm are
poor quality of the equipment, poor control, low diesel and salary of the outsourcing
firm.
Top management as a major policy maker has contributed to poor performance of
the service provider. Therefore a number of suggestions have been presented so as
assist outsourcing firm in the Interbeton Company Limited. They include Advance
payment in order to bought new equipment and add salary to is employees, elaborate
policy and amendment the contract and user department has power to managed the
outsourcing firm. If these suggestions are considered, Interbeton Company Limited
will improve the production and increase productivity. Their benefit may be
reflected in a national economy as well as socio-economy in future. |
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