The management of logistics outsourcing activities - case of MAERSK Ghana Limited

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The outsourcing of logistics activities has been increasing for the past decade .This has been achieved through focusing on the core business and outsourcing other activities to third party service providers. This third party service provider manages part of the Company's logistics activities. Although there are clearly benefits like eliminating investments of fixed infrastru'cture, allowing for greater quality and efficiency of services, and more significantly, cost savings in logistics outsourcing which can help build successful logistics outsourcing partnerships between third- party logistics service providers and their outsourcers, there are challenges like risk of becoming dependent on service providers and firm losing control of part of its logistics activities in engaging in logistics outsourcing. This study assessed how third-party logistics service providers like Maersk Ghana Limited, Kumasi branch whose main focus is on logistics outsourcing contracts and its key customers manage their logistics outsourcing activities. Maersk Ghana Limited, Kumasi branch and its key customers were chosen due to availability and easy access to data. Some conclusions were outsourced logistics activities undertaken by Maersk Ghana Limited include transportation, Clearing and forwarding and warehousing. Unorganized small firms' engaging in import and export activities and short deadlines were some of the challenges encountered by Maersk Company Limited and its key customers respectively. Cost reduction and continuous exposure to new technologies and best practices in the industry were some benefits derived by Maersk Company Limited. Maersk logistics company organizing educational seminars for their customers if possible free of charge to educate them about shipping services and procedures as to how to progress with their shipments was one of the recommendations made.  
A Thesis Submitted to the Department of Information Systems and Decision Sciences, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Master of Business Administration (MBA), 2009