An analysis of third-party logistics performance and service provision (original) (raw)
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2016
The Indian logistics industry is estimated at a value of 14billionUSdollarsandisexpectedtobeworth14 billion US dollars and is expected to be worth 14billionUSdollarsandisexpectedtobeworth385 billion in 2015 paving way to a lot of job opportunities in this sector. In comparison to developed countries like USA and JAPAN spending 10% of its GDP on logistics and Europe spending 11% while India spends around 13% of its GDP on logistics. It is necessary to streamline the logistics process to maintain the efficiency of the logistics network. In addition to integrating information technology and advanced logistical approaches into their business operations, firms are beginning to realize the need to focus on their logistics strategy in order to efficiently maintain their supply chain capabilities. The present study was an attempt to identify the factors of logistics capabilities in thirdparty logistics (3pl) service providers. A review of main stream literature was carried out to identify the factors for logistics capabilities. A total of 314 Third party Logistics Se...
Benchmarking: An International Journal
Purpose Developing strategic relationships with third-party logistics (3PL) providers has long been one of the key challenges in automotive supply chains. The purpose of this paper is to propose a new approach for evaluation and indexing 3PL providers using the Kano model. Design/methodology/approach The statistical population used in this research comprises managers from the Iranian automotive industry. The Kano evaluation approach is used to analyze the data collected and to classify the criteria used in selection of the preferred 3PL providers. Findings The results suggest that the proposed framework, based on the Kano classification, can be a powerful tool for the automotive industry in evaluating 3PL providers. Moreover, the analyses indicate that 3PL providers need to improve their service offering in aspects that are to be found in the Kano model’s requirements, namely, must-be, one-dimensional and attractive. Originality/value This study contributes to the supply chain manag...
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
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.
Engineering Management Research, 2015
Supply chains are becoming more international and sophisticated. With the globalization of businesses, competition between enterprises has evolved to competition between supply chains. The development of third party logistics (3PL) service can help supply chain to achieve cost reduction and shorten lead time simultaneously. For this reason, third party logistics has been integrated into supply chain to enhance supply chain performance. However, we notice that not only is the research on China's 3PL still in its infancy, but also the role of 3PL in supply chain is not well examined from the Chinese market perspective. The intent of this study is to fill the void by providing a framework addressing how to leverage third-party logistics to improve supply chain performance in the Chinese market. The intended contribution of this study is that we hope our research constitutes a pioneer study that conceptually addresses the relationship between 3PL and supply chain performance, upon which data from the Chinese market can be tested.
The increase in foreign trade resulting from China's membership of the World Trade Organization (WTO) created substantial pressure on its logistics system and made change inevitable for local private third party logistics service providers (3PLs) in China who found themselves unable to compete with the global logistics players who began operating in China after it joined the WTO. This study provides an empirically-based model to help local private 3PLs formulate appropriate strategies for improving their performance. Although there is a plethora of literature relating to the improvement of organizational performance and the development of quality management models, most of the studies have been conducted in Western countries and used only one or two organizational performance variables. This study sought to redress that by conducting a study of local 3PLs in southern China to empirically investigate the relationship between the four performance variables of the Balanced
PERFORMANCE MEASUREMENT VARIABLES IN THIRD PARTY LOGISTICS (3PL) – A LITERATURE REVIEW
Liberalisation and Globalisation in marketplace have emerged as the binding force in shaping the business strategies of individual organisations. The organisations, today, compete as an integral part of the supply chain rather than individual entities. This study of performance measurement variables of Third Party Logistics (3PL) organizations explores the performance measurement variables and the relationship between 3PL service providers and supply chain partners (both upstream and downstream). Through this paper the researcher has made an attempt to highlight the importance of performance measurement variables over other factors like developmental strategies, success factors etc which had been the prime focus of earlier researches.
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.
Best Practices Among 3rd Party Logistics (3PL) Firms in Malaysia towards Logistics Performance
International Journal of Academic Research in Business and Social Sciences
Studies on best practices among the 3rd Party Logistics (3PL) firms towards logistics performance has been conducted broadly nowadays due to the growing rivalry and the needs for survival in the business especially for small players. Discovering the best practices structure as well as endorsing its significance on firms' overall performance has been validated by solid evidence of research literature and reports. Owners and managers are looking for any practical methods to reduce firm's operational costs and increase efficiency. The Logistics Performance Index (LPI) released by the International Trade and Transport Department of World Bank, which examines logistics performance in 160 countries, ranks Malaysia at the 41 position as in the 2018 report, showing a declining trend from rank 25 and 32 in the 2014 and 2016 reports, respectively. The declining trend give negative signal that the Malaysian logistics performance is getting worst. The purpose of this paper is to study the breadth of best practices as found in the literature, with emphasizing on effort to build a theoretical framework that further discover the adoption of best practices towards logistics performance by 3PL firms in Malaysia. This paper discuss two independent theoretical areas i.e. best practices and logistics performance in relation to the Malaysian's logistics business operations. Exploring this theoretical areas suggest a research gap in which best practices is abstracted as a method that can be used to provide confirmatory test of its theoretical support to a body of knowledge in the ground of logistics studies.
Performance framework of Third Party Logistics- A Cross National Literature Review
Purpose The purpose of this research paper is to provide a cross national framework of the literature review in the field of Third party Logistics (3PL). Design/methodology/approach The comprehensive literature review including articles and peer-reviewed research papers published in peer reviewed international journals, selected reports and working papers between 1995 and 2014 have been examined. A total of 230 documents and papers have been scanned and 120 research papers have been studied, classified and analysed on the basis of profile-country wise, author and factor profiling, content and methodology-related issues. Findings The study is a wide-ranging review of the literature that highlights the work of researchers in 3PL domain. The paper attends to literature on variables like Service Quality (SQ), Organisational Effectiveness (OE) and Relationship Management (RM) along with several other variables used for the purpose of the researches conducted in the defined time period and reveals the empirical nature of 3PL researches. Researchers across the globe have used statistical tools like Structured Equation Modelling (SEM), Factor Analysis, SERVQUAL and Data Envelopment Analysis (DEA) for the purpose data analysis of their research work. Research limitations/implications Care has been taken to conduct a thorough search. Possibility however remains that some articles might have been missed out accidentally. Since the coverage has been exhaustive, it is hoped that possible omissions would not significantly alter the review and conclusion. Future research work should focus on managing 4PL and 5PL processes, supply chain partnership and their long term customer relationships. Originality/value The paper fulfils the need for a reorganized and additional theoretical classification of 3PL studies. This paper identifies some lesser explored areas and provides a framework for performance management variables and tools to research academicians and practitioners.