Factors Affecting Selection of Types of Freight Forwarder Based On Outsourcing Motivation

Purpose : The purpose of this study is to present implications from analyzing the type of forwarder selected based on the outsourcing motivations of shippers. Research design, data, and methodology : This study separates logistics outsourcing motivational factors and types of forwarders into small and large, domestic and global, general and specialized. A questionnaire targets practitioners who have experience in business relationships with forwarders. Logistic regression analysis is used to test the research hypotheses. Results : We found that shippers who pursue freight rate reduction as a motive for outsourcing prefer domestic companies, SMEs, and general logistics companies. Companies that promote outsourcing to focus on their core business have a high preference for domestic companies, large companies, and specialized logistics companies. Shippers motivated by a logistics capacity tend to outsource to foreign companies, large corporations, and general logistics companies. Based on the motivating factors for service improvement, we found that outsourcing to domestic companies, large enterprises, and general logistics companies is preferred. Conclusions : Overall, the preferences for domestic companies, large enterprises, and general logistics companies in logistics outsourcing factors are higher than for foreign companies, SMEs, and specialized logistics companies.