Impact of Logistics Outsourcing Strategy in Oil and Gas Industry in Uganda
The purpose of the study is to analyze the impact of logistics outsourcing strategy in the oil and gas industry in Uganda. The most outstanding benefit is that, companies outsourced their logistics activities to restructure their distribution networks and achieve competitive advantage. For this purpose purposive sampling method is used where qualitative data are collected and interpreted. Primary data are collected using research questionnaires where quantitative method is used in data presentation and analysis of the impact of logistics outsourcing strategy in the oil and gas industry. The research findings reveal that there are many benefits resulting from using logistics outsourcing strategy in the oil and gas industry and in the same way, challenges are faced by both oil and gas companies and logistics service providers in executing business contracts. Solutions are pursued to create an environment for the oil and gas industry and the third party logistics services providers to achieve a common goal. Findings show that it is very important to outsource full or part of logistics activities to logistics service providers in order to attain competitive advantage. Logistics outsourcing strategy plays an important role in the business especially in minimizing operating costs and spreading risk between the parties engaged in business contracts. Therefore it is necessary for company managers to check their strategies to make sure that logistics activities are in place.