South Asian Journal of Management Sciences Vol. 6, No. 2, (Fall 2012) 35 – 41 SAJMS 2012, Published by Iqra University Defence View, Shaheed-e-Millat Road (Ext.), Karachi, Pakistan. Transportation Outsourcing and Supply Chain Performance: A study of Pakistan’s Pharmaceutical Industry Shujaat Mubarik, Asif Z. Warsi, Muhammad Nayaz and Tanveer Malik * ABSTRACT Recent times have witnessed that transportation outsourcing of logistics functions is a key business strategy to augment the feat of supply chain performance. Heap of empirical literature showed significant impact of transportation outsourcing on effectiveness and efficiency of supply chain management of firms. This paper investigated the impact of transportation outsourcing on supply chain performance for the 30 pharmaceuticals companies operating in Pakistan. Results confirmed that transportation outsourcing by outlined industry do not only improve SCM performance but also provide a significant influence on supply chain effectiveness and efficiency for the Pharmaceutical sector of Pakistan. Keywords: SCM, Efficiency, Outsourcing, Effectiveness. JEL Classification: L9, R41 Introduction The dynamic part of any business is considered its logistics. An effective supply chain strategy must need to address the logistical drivers especially transportation very effectively. Though it is considered an ancillary activity however an efficient transportation management can be a source of competitive advantage for a business. Owing to the importance of transportation, businesses have incorporated various strategies to manage it effectively (Mitra, 2006). One of the prominent strategies used to make transportation effective and efficient is considered outsourcing. However, at empirical level there are studies required especially in pharmaceutical sector of Pakistan, which will be able to encapsulate the relationship of transportation outsourcing with effectiveness and efficiency of a business. The objective of this research is to empirically examine the relationship of outsourcing with a firm’s supply chain effectiveness and efficiency in pharmaceutical sector of Pakistan. Due to influx of competition and price regulations, companies in pharmaceutical sector of Pakistan put more emphasis on cost reduction though the companies are opting outsourcing as a viable option * Corresponding author’s email: shujaatmubarik@gmail.com, asifwarsi@gmail.com and nayazsubhani@iurc.edu.pk * The material presented by the author does not necessarily portray the view point of the editors and the management of the Iqra University, Karachi.