To read this content please select one of the options below:

A comparative study on the use of third party logistics services by Singaporean and Malaysian firms

M. Sadiq Sohail (Department of Management and Marketing, College of Industrial Management, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia)
Rohit Bhatnagar (Nanyang Business School, Nanyang Technological University, Singapore)
Amrik S. Sohal (Department of Management, Faculty of Business and Economics, Monash University, Caulfield East, Australia)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 1 October 2006

4623

Abstract

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

Citation

Sadiq Sohail, M., Bhatnagar, R. and Sohal, A.S. (2006), "A comparative study on the use of third party logistics services by Singaporean and Malaysian firms", International Journal of Physical Distribution & Logistics Management, Vol. 36 No. 9, pp. 690-701. https://doi.org/10.1108/09600030610710854

Publisher

:

Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited

Related articles