Dissertation: Sanctions hinder the outsourcing of logistics operations and the development of the industry in Iran

Daniel Sahebi
Outsourcing logistics operations to so called 3PL (3rd party logistics) partners, could bring significant benefits to Iranian companies. However, the big challenge for the development of logistics partnerships and the logistics sector in Iran is the financial sanctions imposed on the country and the lack of government support, Daniel Sahebi shows in his dissertation at the University of Vaasa, Finland.

Sahebi has examined the logistical needs, incentives and barriers to logistics outsourcing for retail companies based in Tehran, Iran, as well as the criteria for selecting companies that provide third-party logistics services. He has also interviewed executives and experts at 3PL companies in Iran to find out what factors affect the quality of their services. He used both qualitative and quantitative research methods in his research.

According to Sahebi's dissertation, cost reductions, higher income, improved supply chain performance and information security are motivating Iranian retailers to outsource their own logistics activities to 3PL partners.

– One of the most important criteria for outsourcing logistics activities is the cost criterion. Most manufacturing and service organizations that use these companies have reported that the utilization of 3PLs increased their income each year, says Sahebi

Additionally, the results showed clearly that the use of more novel technologies and lack of expert knowledge about programs are the most important motivation and limitation for retailers during the outsourcing process.

According to the qualitative interviews with 3PL companies, the current logistic needs of the retailers in Iran include warehousing, transportation, supplying orders and maintenance of information.

The quality of services provided by 3PL companies in Iran was considered to be average. The quality was affected by both internal and external factors. The results of the study indicated that the factors related to employees, policies, and government support are the most important factors affecting the quality.

Iran has not done badly in terms of transportation infrastructure, and road development. However, in the field of education, especially the training of managers, there has been poor performance and the relationship between the university and industry in the field of logistics is very weak.

Daniel Sahebi, University of Vaasa

– The sanctions have affected the economic situation of Iran quite dramatically. Moreover, it is impossible to expect a significant improvement in the situation of the logistics business and supply chain without support from the government, says Sahebi.

– A coherent and integrated planning at the macro level in the country, or the existence of a guiding and advocacy viewpoint from the government for the development of strategies and programs would be essential. The existing evidence indicates that, at least in this area, there is no strategic document or executive plan in Iran.

Doctoral dissertation

Sahebi, Daniel (2022) Improving competitive advantage in 3PL companies in Iran. Acta Wasaensia 478.  Doctoral dissertation / Väitöskirja. University of Vaasa / Vaasan yliopisto.

Publication pdf:  https://urn.fi/URN:ISBN:978-952-395-005-4

Public defence

The public examination of M.Sc. Daniel Sahebi’s doctoral dissertation "Improving competitive advantage in 3PL companies in Iran" will be held on Friday 28 January 2022 at noon at the University of Vaasa.

The defence will be organised online: https://uwasa.zoom.us/j/69588963639?pwd=bExRaVBnV0MvQVBXdjh1M0JLcUdiUT09
Password: 062188

Professor Matloub Hussain (Abu Dhabi University) will act as an opponent and Professor Petri Helo as a custos.

Further information

Daniel Sahebi,  daniel.sahebi@uwasa.fi

Daniel Sahebi was born in Tehran, Iran in 1987. He received an International Baccalaureate diploma from Turun normaalikoulu in 2006, and a Bachelor of Engineering degree in Mechanical Engineering and Production Technology from Häme University of Applied Sciences (HAMK) in 2010. He also has a Master's degree in Industrial management from the University of Vaasa.

Daniel Sahebi currently works as a university teacher in industrial management at the University of Vaasa. He is also the CEO and founder of Wasa CarWash and Wasa CarService.

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