Comparative Study of Logistics Outsourcing and In-House Services on Customer Satisfaction Among Nigerian Manufacturing Companies

Abstract:

This study compared logistics outsourcing and in-house logistics services as they affect customer satisfaction in terms of speed of service delivery, service flexibility, service dependability and service effectiveness. This study adopted survey design with questionnaire responses from 800 customers of the ten (10) outsourcing and ten (10) non-outsourcing manufacturing companies in Nigeria. A convenience sampling technique was applied and data collected were analyzed using descriptive and inferential statistics. The independent samples t-test was used to test the hypotheses at 0.05 level of significance. The result showed that the average mean (m =13.96) scores value of the customers of outsourcing companies is greater than the average mean (m = 11.63) scores value of the customers from in-house services companies. Also, found that the mean (M =12.72) scores value of the outsourcing companies’ customers is greater than the average mean (m =10.74) scores value of the customers from in house services companies’ customers. The result also showed that the mean (m = 13.96) score value of the in-house services companies’ customers is higher than the mean (m = 13.72) scores value of the outsourcing companies’ customers. Based on the findings, it was recommended that manufacturing companies in Nigeria both outsourcing and in-house services should focus more on the core business activities they have advantages and can do better than its competitors. Then, outsource non-core business activities to other firms who can do it better than themselves.