Factors Influencing Decision to Outsourcing Logistics Activities in Automotive Industry: Case Study of Amata Industtrial Estate

Abstract

There are 2 objectives for this study which are (1) To study factors influencing decision to outsourcing logistics activities (2) To study the obstacles that could encounter the organization when they consider using a logistics (Third-party logistics providers) in the automotive industry at Amata Industrial Estate area. The methodologies for this study are descriptive analysis by using primary sources from 108 companies of questionnaire survey in in automotive industry at Amata Industrial Estate area. According to the research results, the researcher found are (1) Both SME and large enterprise recognize that they will get convenience in operations when hiring logistics providers to doing logistics activities. Which this factor is very important for decision outsourcing logistics providers (2) the questionnaire result is shows that main obstacle influencing decision outsourcing logistics provider from respondent attitude is lack of management confidence in an outsourcing logistics provider. Organization will take a risk to the confidentiality.