Abstract:
In today’s world as competition has increased, so has the process of
purchasing through the third party. Businesses have recently seemed to consider
purchasing as a strategic tool to help achieve business objectives. This phenomenon
has seen a steady rise over the past few years with technology playing a key role. In
recent times there is one function that has gained importance within the supply chain
domain and is known as the purchasing function. Purchasing through third party
businesses has seen a rise around the globe and hence it is important to analyze
how this might affect the different functions within the supply chain. The aim of this
research is to analyze the effect of purchasing through a third party and how it
effects the logistics performance in the weaving sector of an emerging economy. In
this paper, we focus on the emerging economy which is Pakistan and its weaving
sector which is one of the largest sectors within the country. This paper tends to
target businesses that purchase through the third party. Our focus in this paper was
solely on the weaving industry of Pakistan to gather credible insights. A quantitative
analysis has been conducted to test the hypothesis against different variables. This
paper tends to target weaving companies within the country irrespective of their size.
Existing literature shows us that not much work has been done to analyze the
performance of purchasing through the third party concerning logistics performance
especially in developing economies such as Pakistan. It is of great important for
businesses to be able to fully understand and learn about the effects of purchasing
through the third party. As purchasing function is now considered to play a strategic
role within organizations, it would be interesting to see how businesses use
purchasing through the third party as a tool to achieve their business objectives.
Concerning academic relevance, this research will open opportunities for
researchers along with building a framework for future researchers to work upon and
make advancements in the field of business management. The paper focuses on the
significance of purchasing through the third party on important KPI’s which are
associated with logistics performance. The findings through this paper would help to
fill the research gap which would help businesses make informed decisions.
