Determination of the success factors in supply chain networks: a Hong Kong‐based manufacturer's perspective

Abstract

Purpose

The purpose of the paper is to investigate the factors that affect the decision‐making process of Hong Kong‐based manufacturers when they select a third‐party logistics (3PL) service provider and how 3PL service providers manage to retain customer loyalty in times of financial turbulence.

Design/methodology/approach

The paper presents a survey‐based study targeting Hong Kong‐based manufacturers currently using 3PL companies. It investigates the relationship between the reasons for using 3PL services and the requirements for selecting a provider, and examines the relationship between customer satisfaction and loyalty. In addition, the relationships among various dimensions – in small to medium‐sized enterprises (SMEs), large enterprises and companies – of contracts of various lengths are investigated.

Findings

In general, the reasons for using 3PL services and the requirements for selecting 3PL service providers are positive‐related. The dimension of “reputation” of satisfaction influences “primary customer loyalty” positively.

Practical implications

Constructive suggestions are provided to help 3PL service providers allocate their limited resources to business areas that help them to meet the demands of their target customers, increase the number of customers, and improve customer loyalty.

Originality/value

The paper is an attempt to help 3PL service providers find ways to survive in a climate of financial crisis.

Citation

Lao, S.I., Choy, K.L., Ho, G.T.S., Tsim, Y.C. and Chung, N.S.H. (2011), "Determination of the success factors in supply chain networks: a Hong Kong‐based manufacturer's perspective", Measuring Business Excellence, Vol. 15 No. 1, pp. 34-48. https://doi.org/10.1108/13683041111113231