Effect of Purchasing through Third Party of Yarn on Logistics Performance in the Weaving Sector of Pakistan

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.