3PL practices: an Indian perspective
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 1 October 2006
Abstract
Purpose
To carry out a comprehensive survey on 3PL practices in India and to establish the impact of usage of third party logistics services on business results.
Design/methodology/approach
Begins by analysing the studies carried out on 3PL practices and establishing a research framework. The input variables to the research framework depict the organization‐specific characteristics, such as the extent of usage of 3PL services, the reasons for outsourcing and the impact of the usage of 3PL services. The output function of future usage of 3PL services is influenced by the three input variables. Data collected through survey questionnaire on the input and output variables are used to establish impact of usage of 3PL services on business performance through statistical analysis.
Findings
The usage of 3PL services reveals positive and significant impact on business performance though 3PL practices are still at a nascent stage in India. Additionally, results clearly indicate that significant increase in outsourcing has been planned across all activities of the logistics function in the next 2‐5 years.
Research limitations/implications
Further research work should focus on managing 3PL relationships; selection and contract management of 3PL service providers for building collaborative supply chain partnerships; and identifying critical success factors for 3PL implementation and establishing performance measures for long‐term 3PL relationships.
Practical implications
Detailed study to motivate supply chain managers to outsource and use 3PL services to focus on the core business, drive logistics cost reduction, and improve supply chain efficiency. These indicators should also help the 3PL service providers plan the depth and scope of their service offerings to user organizations in India.
Originality/value
The paper contributes to the current 3PL and supply chain practices and the emerging trends in 3PL services for achieving improved business results and supply chain efficiencies.
Keywords
Citation
Sahay, B.S. and Mohan, R. (2006), "3PL practices: an Indian perspective", International Journal of Physical Distribution & Logistics Management, Vol. 36 No. 9, pp. 666-689. https://doi.org/10.1108/09600030610710845
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited