Environmental-sustainability Aspect in the Outsourcing of Business-logistics Services

Outsourcing of business-logistics services is a well-established business practice that allows an outsourcer to obtain the services or products from a logistics-service provider (LSP). The outsourcer can order a range of logistics services, including but not limited to warehousing, transportation, and forwarding. The outsourcers had traditionally focused on service-provider selection criteria such as costs, quality, and responsiveness while having devoted considerably less attention to how sustainably the practices are carried out. Past research identified different external and internal motivators that facilitate consideration of sustainability in selection of the service providers, whereas the current study investigates the outsourcers’ perception of importance of environmental sustainability in adoption of green logistics practices and selection of LSPs. We use a vantage point of outsourcers (“buyers”) to conduct the quantitative research based on a survey conducted on large manufacturing companies. The findings reveal a (mis)match between the perception of importance and realized inclusion of environmental-sustainability criteria. Ultimately, this study finds a link between the levels of perception and rate of adoption, and provides recommendations for the future adoption of environmental-sustainability criteria in the selection of the LSPs.