This paper presents a comparative analysis on the outsourcing of logistics services by manufacturing organisations in the Malaysia and Saudi Arabia. The study addresses key issues relating to extent of usage of third party logistics services, implementation issues, obstacles and plans of current users of contract logistics services. Results based on a survey shows that there are some differences on the use of contract logistics services in Malaysia and Saudi Arabia. Firms in Malaysia have a longer history of logistics outsourcing as compared to Saudi Arabia. The paper presents a report of these differences and similarities and makes a comparative analysis.
Keywords: outsourcing, logistics services, Malaysia, Saudi Arabia, intermodal transportation, benchmarking, third party logistics, 3PL, manufacturing