The use of third-party logistics services: Evidence from a sub-Sahara African nation

Abstract

This paper examines the usage of third-party logistics services in sub-Saharan Africa with a focus on Ghana. An empirical research was carried out in Ghana to study: the extent that organisations use the services of logistics companies; the time period these have been used; the decision-making process for choosing contract logistics; and its impact on the organisation. Results based on the analysis of data relating to 64 organisations in Ghana indicate that over 80% of the users reported a positive impact of logistics outsourcing and have largely been satisfied with this. Other findings relating to the nature of third-party logistics services, such as implementing logistics service provider relations and organisational commitment are also discussed and compared with studies undertaken in other regions. The paper concludes with the discussion on the managerial implications of the evidence gathered.

Acknowledgements

The first author is grateful for the facilities support provided by KFUPM. The authors would like to thank Mohamed Naim (Co-Editor in Chief, International Journal of Logistics) and two anonymous reviewers for their helpful comments on an earlier draft of this work.