Measuring the longitudinal performance of 3PL branch operations
Abstract
Purpose
The purpose of this paper is to analyze the longitudinal efficiency of branch operations of a third party logistics (3PL) company for comparative performance measurement and internal benchmarking.
Design/methodology/approach
Data envelopment analysis (DEA) is used for measuring the performance of a branch of a 3PL company for 36 months using internal data.
Findings
Despite increasing revenues, the branch suffers diminishing efficiencies in recent months. Indirect expenses are identified as a major source of inefficiency.
Research limitations/implications
The 3PL company has over 600 branches. However, due to the availability of data and the regulation on information disclosure for publicly traded companies, this study includes information on only one branch.
Originality/value
The contributions of this study include demonstrating a novel framework for internal benchmarking with longitudinal data, providing actionable managerial insights, and the use of internal data, which is not accessible to the general public.
Keywords
Citation
Joo, S., Keebler, J.S. and Hanks, S. (2013), "Measuring the longitudinal performance of 3PL branch operations", Benchmarking: An International Journal, Vol. 20 No. 2, pp. 251-262. https://doi.org/10.1108/14635771311307704
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited