On the importance of service performance and customer satisfaction in third-party logistics selection (original) (raw)
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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...
IOP Conference Series: Materials Science and Engineering, 2019
This study aims to investigate the criteria that the automotive manufacturing companies currently consider when selecting a logistics service provider; and to prioritise the importance level of those criteria based on service buyers’ perspectives. The criteria were synthesised from the relevant literature review, and they were then used to develop the questionnaire. In this current study, the questionnaire was divided into two parts: the manufacturers’ current criteria for considering the service provider: and, the levels of importance for the criteria. It was then sent to five large-scale manufacturers in the automotive industry in Thailand. Following up with questionnaire responses, the researchers also conducted an interview with each participating manufacturer to elicit additional insightful information. According to the results, there were seven criteria that all five manufacturers collectively used to consider the logistics service: 1) Price, 2) Relationship, 3) Management sys...
Transport Problems
A large number of criteria, the very diverse use of terminology and different classifications of criteria used to select a logistics service provider (LSP) reflect the lack of consensus in defining criteria. Moreover, whether the criteria are consistent with external requirements has not been analysed, which are vitally important for the success and competitiveness of the supply chain. This paper therefore presents a carefully prepared and evaluated classification system of criteria aligned with the requirements of the external environment. A multi-stage methodological approach was used. Selection criteria obtained from the systematic review of literature were first carefully analysed to find potential shortcomings. After that, a cluster method was used to reduce the number of criteria and to aggregate similar criteria. A Pareto analysis (75/25 rule) was further used to rank the criteria according to their frequency of use and consequently according to importance. The obtained categories of criteria (vitally important criteria (C1), very important criteria (C2), important criteria (C3) and less important criteria (C4), using the AHP method, were compared by the experts to define their weights. This paper summarizes and extends the recent literature through a six-step methodological approach and proposes a new classification system of selection criteria.
2007
In this paper, a multi-criterion decision making (MCDM) model for outsourcing logistics services in the Turkish automotive industry is presented. In the paper, the logistics requirements of the automotive companies and the role of the third-party logistics (3PL) services in the automotive industry are reviewed. The concept of milk run and its benefits are explained. The current situation of the Turkish automotive industry and agricultural tractors segment is analyzed. An argument for outsourcing 3PL services for Turk Traktor Fabrikası (TTF: Turkish Tractor Plant) is developed. An analytic hierarchy process (AHP) model is created to select the best 3PL provider among four candidates. The model is used to evaluate the alternatives. Finally, the outcome and the implications of the model for implementation are 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.
CenRaPS Journal of Social Sciences, 2020
Purpose: Logistics plays an important role in integrating the supply chain of industries. But given the volatility and dynamic nature of supply chain management as a field, the factors that need to be considered when choosing a 3PL can vary based on geographic location, type of industry, nature of the product and so on. Therefore, this study aims to identify which factors impact 3PL Service Provider selection the most in the edible oil industry specifically based in Karachi. Design: The study describes and the theory of core competencies and how these competencies are used in the selection process of 3PL Service Providers. A survey was carried out through questionnaires to determine which competencies are best suited to choosing a 3PL Service Provider in the edible oil industry. Findings: The findings showed the Selection of 3PL Provider was most significantly impacted by two of the five variables Cost of Service and Operational Performance. Financial Performance showed a weak relat...
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.
Decision support model for evaluation and selection of Third Party Logistics service providers
International Journal of Logistics Systems and Management, 2008
Third Party Logistics (3PL) service providers play an important role in fulfilling the strategic objectives of shippers. The importance of 3PL service providers is growing globally. The growing demands encourage the evolution of new services, thus shipper's management is keen on 3PL service providers. This paper describes Technique for Order Preference by Similarity to Ideal Solution for critically analysing and selecting potential 3PL service providers in fuzzy environment. Various selection criteria measured in linguistics term in vague and subjective reference are accounted using Triangular Fuzzy Numbers. The case problem demonstrates fuzzy Multi-Criteria Decision-Making method to evaluate the potential 3PL service providers by assigning weight to each criterion and later on synthesising the capability exhibited by them. Decision Makers' fuzzy preference may be aggregated in terms of crisp value to earmark potential 3PL service providers for a case problem of shipper.
Journal of Multi-criteria Decision Analysis, 2012
When a business decides to outsource its logistics operations to improve its performance, the organization will need to select a third-party logistics provider (3PL) that shares common goals and satisfies service level requirements. In this paper, we identify a set of 3PL performance measures from the perspective of the supply chain and organize them into a time-phased format, beginning with the post production stage and continuing through the delivery of the goods to the customer distribution center. The supply chain flow is presented as a Metrics Arrow. To integrate the performance metrics (PM) into one model, we propose an analytical network process (ANP) to capture all PM and to understand the interrelated influences among them. Additionally, to derive the weights for PM, the proposed ANP model offers managerial insight into the relative impact of each metric as well as warning signals or trigger points within the network of PM. The model provides a realistic framework to choose the 3PL that can help achieve the greatest improvements within the supply chain.
Evaluation and Selection of a Third Party Logistics Supplier in a Chemical Company
ICTE 2015, 2015
Third party logistics service providers (3PLSPs) evaluation and selection for a long-term as well as a strategic partnership is a very crucial and critical task and it is continually associated with uncertain challenges. To remain efficient and competent in the dynamically changing world of 21st century, organisations have reinforced their supply networks by building strategic partnership among both local and international suppliers. Adding to these, there are growing concerns from stakeholder for ensuring implementation of sustainability dimensions. The aim of this paper is to measure and compare the relative efficiency of the existing 3PLSPs based on the technical and sustainable criteria by using a data envelopment analysis (DEA), to find the best among the 3PLSPs portfolios, for the purpose of selection. Finally, a case study in a manufacturing firm is presented to demonstrate the potential use of the model.