Managing logistics outsourcing to China: Business problems and solutions for Australian firms

Abstract

This study aims to investigate the outsourcing relationships between firms in Australia and China by using a problem-solution approach, and find out practical solutions. Empirical data from Australian firms were collected by a questionnaire survey and interviews. The survey data were analysed by descriptive statistics and correlation to find the most common problems and related solutions, and then eight case studies were compiled. The results agree that outsourcing can achieve many significant benefits, though it presents a variety of new risks. Solutions found include increasing communication levels, trust and management control.