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Measuring the longitudinal performance of 3PL branch operations

Seong‐Jong Joo (Hasan School of Business, Colorado State University‐Pueblo, Pueblo, Colorado, USA)
James S. Keebler (College of Business, Clayton State University, Morrow, Georgia, USA)
Sue Hanks (Hasan School of Business, Colorado State University‐Pueblo, Pueblo, Colorado, USA)

Benchmarking: An International Journal

ISSN: 1463-5771

Article publication date: 5 April 2013

885

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

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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