THE USE OF THIRD PARTY LOGISTICS SERVICES: A MALAYSIAN PERSPECTIVE (original) (raw)
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A COMPARATIVE STUDY ON THE USE OF THIRD PARTY LOGISTICS SERVICES BY SINGAPOREAN AND MALAYSIAN FIRMS
Purpose – The aim of this research is to undertake a comparative analysis on the use of third party logistics (3PL) services by manufacturing firms in Singapore and Malaysia. Design/methodology/approach – This study is based on a questionnaire survey conducted in Singapore and Malaysia in 1998 and 2000, respectively. The paper addresses key issues relating to the extent of usage of 3PL services, specific contract logistics services used, benefits for the user firms, obstacles encountered in implementing contract logistics relationships, impact of the use of contract logistics services on logistics costs, customer satisfaction, and employees of the user firms and the future plans of current users of contract logistics services. Findings – Analysis shows that there are similarities on the use of contract logistics services in Singapore and Malaysia. These include the proportion of firms utilising contract logistics, the extent of involvement of functional managers, budget allocation and activities outsourced. Notable differences between the two countries include the decision-making process, and the benefits to the firms from the use of contract logistics. Research limitations/implications – Limited sample size and the generalisation of results to all manufacturing firms in Singapore and Malaysia manufacturers ignoring possible regional differences in each context are the two limitations in this study. Originality/value – This study identifies the scope for 3PL services in Singapore and Malaysia. With the enhanced usage of contracting logistics, the study provides 3PL services providers who are considering Asia Pacific as a potential market, a comprehensive analysis of the current situation in Singapore and Malaysia. Keywords Outsourcing, Manufacturing industries, Singapore, Malaysia Paper type Research paper
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.
Int J Logist Syst Manag, 2006
This paper compares manufacturing and service industries on a variety of practices relating to usage of third party logistics and identifies significant differences between the two sectors in the decision-making process; the length of experience with contract logistics providers; extent of commitment; expenditure on contract logistics providers and organisational impact. A survey was conducted among firms from the manufacturing and service industries in Saudi Arabia. Empirical research is used to study the extent to which firms use the services of logistics companies; the length of time these have been used; the decision-making process for choosing contract logistics and its impact on the organisation. The comparison shows that a higher percentage of firms in the service sector have seen the use of TPL services as a positive development in the organisation. The paper concludes with a discussion on the implications.
Benefits, Risks, Selection Criteria and Success Factors for Third-Party Logistics Services
Maritime Economics & Logistics, 2008
The need to reduce logistics costs is well recognised, often, however, without identification of the factors that could contribute to such a reduction. Third-party logistics (3PL) is an augmenting activity of the transport system, which can strengthen the cooperation of different transport modes. As a new practice, conditions of success are driven from personal or empirical situations, often hiding the real causes. To tackle this problem, a major survey has been conducted among both buyers and suppliers of logistics services in the United Kingdom. From the survey, several key findings of customer perceptions of logistics services provided by 3PL companies were derived. Results of the survey show a clear difference in points of view between suppliers and buyers. The results of the survey shed light on how the architecture of logistics outsourcing can be improved.
THE USAGE OF THIRD PARTY LOGISTICS IN SAUDI ARABIA CURRENT POSITION AND FUTURE PROSPECTS
Purpose – With competitive pressures placing an increasing dependence on the ability of organizations to deliver customer-adapted products quickly and on time, logistics has been an area that has been subjected to investigation. While there is a growing evidence of organizations increasingly seeking to outsource their logistics activities, there have been few comprehensive studies on the outsourcing of logistics in the Middle Eastern region. The purpose of this paper is to examine the usage of third party logistics (TPL) services in Saudi Arabia. Design/methodology/approach – Empirical research is used to study the extent firms use the services of logistics companies; the time period these have been used; the decision-making process for choosing contract logistics and its impact on the organization. Findings – Results based on the analysis of data relating to 496 firms in Saudi Arabia indicate that most of these users are satisfied with the services providers and has largely seen positive developments within the organization. Practical implications – The results provide managers with evidence supporting the benefits of logistics outsourcing. The study also contains useful information for the providers of contract logistics services on the most frequently used services. Originality/value – This study makes a significant addition to literature on logistics outsourcing as little empirical research has been previously reported from Arab world and Saudi Arabia. Saudi Arabia to establish linkages between organizations and TPL providers. Moreover, the results of this study will also serve as a future benchmark for the entire Gulf Cooperation Council region, as Saudi Arabia happens to be the largest country in the Middle East. Keywords Outsourcing, Saudi Arabia, Distribution management Paper type Research paper
Drivers of Outsourcing and Selection Criteria of 3rd Party Logistics Service Providers
Operations and supply chain management, 2017
Previously various studies were conducted concerning the outsourcing and selection of 3PL in different countries but this study aims to find out the reasons of outsourcing and selecting a 3PL from the different industries of Pakistan. The study aimed to collect the data from the manufacturers working in different industries in Pakistan. The researchers have used mean testing to rank the factors as per their importance and the data of 125 respondents were gathered for analysis. Study has found that reduction in the logistics costs is the most important reason for outsourcing 3PL and service quality is the most crucial factor for the selection of any 3PL service providers in Pakistan. The research aims finding the factors for the reasons of outsourcing and selection of a 3PL but it would be useful finding the impact of outsourcing the logistics activities on the organization's performance through qualitative and quantitative approaches. The research provides a vital and practical direction to the Pakistani organizations regarding the decisions of outsourcing and selecting a 3PL service providers. The research will help finding the reasons of outsourcing and selection of any 3PL party. The research aims finding the reasons and selection of 3PL in the organizational perspective of Pakistan as there are very limited past conducted studies.
2020
Logistics activities have become much concerned by many companies in term of an effective and efficient selection of Third-Party Logistics (3PL) provider. The use of 3PL providers and its effects to the customer satisfaction is mostly discussed in the case of manufacturing industry considering information technology variable, but the inclusion of trust as moderating variable between customer loyalty and customer satisfaction is limited. This article aims to identify the factors considered by Indonesian companies in selecting 3PL. Respondents of this research are managers of logistics or persons in charge of logistics activities. Structural Equation Modeling (SEM) is used to elaborate the relationship between factors affecting 3PL selection decision. The results indicate that Information Technology (IT) usage, service quality, trust and customer satisfaction are the factors affecting the companies to select a 3PL provider. Other results also show that there is a significant relations...
Journal of Global Operations and Strategic Sourcing, 2019
PurposeBangladesh is becoming one of the emerging destinations for global outsourcing. However, little is known about the usage patterns of third party logistics (3PL) outsourced services. The purpose of this paper is to examine the extent of 3PL usage, the organisational factors affecting 3PL usage, impacts of 3PL and the future trend of 3PL usage in Bangladesh.Design/methodology/approachA survey questionnaire is used to collect data against a number of items pertaining to the extent of 3PL use and its impact on performance. A total of 1,000 organizations were randomly selected from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) database. The survey resulted in 243 responses, out of which 150 organisations have adopted 3PL services. A chi-square test is conducted to assess statistical significance of the hypothesized relationships among the variables relating to 3PL decision-making process and a regression analysis is conducted to assess the strength of thos...
Third-Party Logistics Service Providers: Purchasers' Perceptions
The Journal of Supply Chain Management, 1996
A recent survey of manufacturers provides insight into their relationships with providers of international logistics services. The research examines the purchasers’ perceptions regarding the service providers’ capabilities. Further, differences between high-performance logistics providers and those perceived as providing lower levels of performance are identified and discussed.
An analysis of third-party logistics performance and service provision
Transportation Research Part E: Logistics and Transportation Review, 2011
The aim of the research described in this paper is to evaluate the relationship between the service capabilities and performance of UK and Taiwanese third-party logistics (3PL) providers. A study is presented based on a recent survey. The results identify the most important services offered by 3PLs and the most important aspects of 3PL operational performance. The results also suggest that excellence in operations is more important than wide-ranging service provision. Furthermore, the research suggests that the range of service provision offered by 3PLs does not directly influence the 3PLs' financial performance. However, 3PL providers with service capabilities that correspond to the key priorities of customers will gain superior financial performance through a better operational performance. Similarities and differences between logistics practices in the UK and Taiwan are highlighted.