ABSTRACT

The purpose of this study is to examine the main issues of logistics outsourcing contract, including, performance issues, financial issues, legal issues and HR-related issues in the handloom industry. The study aims to analyse weather the outsourcing logistics is a strategic tool aid or not, and to indentify the reasons why the outsourcing fails at most. The purpose is to identify the major malfunctions of contracts to formulate a set of recommendations for companies in order to avoid the failure of such relationships between parties. The study analysed the key drivers of supply chain risks and logistics, and identified supply chain risks by analyzing their likelihood to occur and their potential impact on the supply chain and logistics. Furthermore, factors that affect the business performance due to the logistics and supply chain risks are discussed. The analyses reveal that, the companies with a high degree of logistics outsourcing implementation show a better supply chain performance. The supply chain risk management has become a key concern for organizations, which is even further emphasized by the current economic and financial crisis. Finally, the study investigates successful approaches and experiences by companies in dealing with the supply and transportation side.

Key words: Risk management, Enterprise risks, Supply chain risks, Logistical risks, Prioritization