3PL factories or lernstatts? Value‐creation models for 3PL service providers

Abstract

Purpose

The purpose of this paper is to identify and systematically discuss generic forms of contract logistics services and their distinct underlying approaches for fulfilling their respective value propositions. A general frame of reference is developed that addresses the value proposition, as well as the value creation architecture that leads to generic business model configurations for contract logistics services. The framework is built upon the basic notions of service theory, competence research and the resource based view.

Design/methodology/approach

The paper combines service theory with work of organizational theory and develops an analytical framework based on conceptual considerations. First empirical results are additionally used to support and illustrate the key outcomes.

Findings

Combining the dimensions of integration power and intangible knowledge creation, the authors are able to specify generic types of contract logistics services. Thereby the authors deducted for every type the distinct requirements for service fulfilment and present this in a specific frame of reference.

Research limitations/implications

The illustrated empirical results are still limited due to a limited sample size for the interviews. Additional empirical work on the whole third party logistics (3PL) market is suggested.

Practical implications

The paper provides generic types of 3PL services and a characterization of properties and architectures of respective business models. Combined with first empirical results, the paper's results offer insights for practitioners to rethink their value propositions and potentially redesign their service architectures.

Originality/value

The paper delivers a set of distinct business models for 3PL services reflecting the customer's, as well as the service provider's point of view. It addresses specific aspects of the generation/production of required services that are so far mostly neglected.

Citation

Prockl, G., Pflaum, A. and Kotzab, H. (2012), "3PL factories or lernstatts? Value‐creation models for 3PL service providers", International Journal of Physical Distribution & Logistics Management, Vol. 42 No. 6, pp. 544-561. https://doi.org/10.1108/09600031211250587