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Article
Publication date: 1 October 2006

B.S. Sahay and Ramneesh Mohan

To carry out a comprehensive survey on 3PL practices in India and to establish the impact of usage of third party logistics services on business results.

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Abstract

Purpose

To carry out a comprehensive survey on 3PL practices in India and to establish the impact of usage of third party logistics services on business results.

Design/methodology/approach

Begins by analysing the studies carried out on 3PL practices and establishing a research framework. The input variables to the research framework depict the organization‐specific characteristics, such as the extent of usage of 3PL services, the reasons for outsourcing and the impact of the usage of 3PL services. The output function of future usage of 3PL services is influenced by the three input variables. Data collected through survey questionnaire on the input and output variables are used to establish impact of usage of 3PL services on business performance through statistical analysis.

Findings

The usage of 3PL services reveals positive and significant impact on business performance though 3PL practices are still at a nascent stage in India. Additionally, results clearly indicate that significant increase in outsourcing has been planned across all activities of the logistics function in the next 2‐5 years.

Research limitations/implications

Further research work should focus on managing 3PL relationships; selection and contract management of 3PL service providers for building collaborative supply chain partnerships; and identifying critical success factors for 3PL implementation and establishing performance measures for long‐term 3PL relationships.

Practical implications

Detailed study to motivate supply chain managers to outsource and use 3PL services to focus on the core business, drive logistics cost reduction, and improve supply chain efficiency. These indicators should also help the 3PL service providers plan the depth and scope of their service offerings to user organizations in India.

Originality/value

The paper contributes to the current 3PL and supply chain practices and the emerging trends in 3PL services for achieving improved business results and supply chain efficiencies.

Details

International Journal of Physical Distribution & Logistics Management, vol. 36 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 29 August 2019

Nasrin Akter, Prem Chhetri and Shams Rahman

Bangladesh is becoming one of the emerging destinations for global outsourcing. However, little is known about the usage patterns of third party logistics (3PL) outsourced…

Abstract

Purpose

Bangladesh is becoming one of the emerging destinations for global outsourcing. However, little is known about the usage patterns of third party logistics (3PL) outsourced services. The purpose of this paper is to examine the extent of 3PL usage, the organisational factors affecting 3PL usage, impacts of 3PL and the future trend of 3PL usage in Bangladesh.

Design/methodology/approach

A survey questionnaire is used to collect data against a number of items pertaining to the extent of 3PL use and its impact on performance. A total of 1,000 organizations were randomly selected from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) database. The survey resulted in 243 responses, out of which 150 organisations have adopted 3PL services. A chi-square test is conducted to assess statistical significance of the hypothesized relationships among the variables relating to 3PL decision-making process and a regression analysis is conducted to assess the strength of those variables to predict the impact of 3PL usage.

Findings

Overall, the results reveal that 3PL services are extensively adopted by businesses (63 per cent) in Bangladesh. Freight forwarding, order fulfilment and shipment consolidation are the top three most frequently outsourced 3PL services. However, the extent of 3PL use varies between manufacturing and service organisations. Results also suggest that logistics system performance is the key predictor of the overall satisfaction of 3PL users.

Research limitations/implications

The key limitation of this study is that both manufacturing and services firms are collectively analysed. Future research will separately investigate the outsourcing 3PL services requirements for two categories of firms. Characterisation of 3PL usage patterns and their drivers has practical significance and strategic implications for logistics practitioners and decision-makers who opt for global outsourcing.

Originality/value

The implementation in the context of Bangladesh to provide an evidence base to formulate business strategies for increasing the adoption of 3PL usage is novel.

Article
Publication date: 6 May 2020

Sajjida Reza, Muhammad Shujaat Mubarik, Navaz Naghavi and Raja Rub Nawaz

This study examines the outsourcing criteria prevalent in the Hotel industry of Pakistan. In doing so, the study investigates the role of trust in the association between…

Abstract

Purpose

This study examines the outsourcing criteria prevalent in the Hotel industry of Pakistan. In doing so, the study investigates the role of trust in the association between relationship marketing dimensions—communication, opportunistic behavior, reputation, satisfactory prior outcomes and specific investment—and third-party logistics provider’s (3PL) selection.

Design/methodology/approach

Using a close-ended questionnaire, data were collected from 97 hotels of various categories operating in Pakistan and involved in 3PL outsourcing. Partial Least Square–Structural Equation Modeling was employed to estimate the modeled relationships.

Findings

With a high predictive relevance of the model, communication, satisfactory prior outcome and reputation were found to have a significant effect on the trust, whereas the results showed a significant mediating role of trust in the association between communication, reputation and 3PL provider’s selection.

Research limitations/implications

The study uses static data from selected firms and cannot be used to analyze behavior over a period of time. Hence, a generalization of results should be made carefully.

Practical implications

Findings imply that for fully capitalizing on the benefits by virtue of their prospective relationship, the managers must streamline their processes and activities according to path directions that endorse a higher degree of trust in their service providers and establish an effective system of communications interconnecting their mutual goals and objectives.

Originality/value

The outcome of the research study illustrated the perceptions of the local businesses with regards to the 3PL service provider(s) selection via the establishment of trust.

Details

Journal of Hospitality and Tourism Insights, vol. 3 no. 3
Type: Research Article
ISSN: 2514-9792

Keywords

Article
Publication date: 5 February 2018

Sadia Samar Ali and Rajbir Kaur

The purpose of this paper is to evaluate the satisfaction level of customers using third party logistics (3PL) services in the Indian capital region and its surrounding areas. The…

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Abstract

Purpose

The purpose of this paper is to evaluate the satisfaction level of customers using third party logistics (3PL) services in the Indian capital region and its surrounding areas. The American Customer Satisfaction Index (ACSI) model is used as a framework to identify the major drivers of satisfaction and areas requiring immediate attention for provision of better services.

Design/methodology/approach

Present study includes an exhaustive review of literature for the identification of enablers for this model. Through iterative and structured discussions, variables related to process, service information and user’s expectations are identified, which are subsequently grouped into four dimensions. A survey method is used to get the primary data for this research from 3PL service users’ organizations in the Delhi and adjoining capital region. ACSI is used to prioritize the most preferred driver of satisfaction.

Findings

Enablers related to process involving order processing, order picking, order fulfillment and final decision making stand out as the winners and also other critical areas have been identified.

Practical implications

There is a gap between the services obtained and services expected and information-related complications which lead to unsatisfied customers. The 3PL service providers need to focus on these areas for better business performance and healthy and long-lasting business relationships.

Originality/value

The paper is an attempt to implement a satisfaction model for the 3PL sector from user’s perspective.

Details

Benchmarking: An International Journal, vol. 25 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 1 October 2006

M. Sadiq Sohail, Rohit Bhatnagar and Amrik S. Sohal

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.

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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.

Details

International Journal of Physical Distribution & Logistics Management, vol. 36 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 6 July 2015

Rameshwar Dubey and Angappa Gunasekaran

– The purpose of this paper is to build a supply chain talent framework and test it empirically.

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Abstract

Purpose

The purpose of this paper is to build a supply chain talent framework and test it empirically.

Design/methodology/approach

The present study adopts extant literature to understand current state of supply chain talent literature and used knowledge and skill constructs and their items from comprehensive literature review to develop an instrument to gather data. The data are further checked for assumptions and further examines the framework using confirmatory factor analysis.

Findings

The findings support previous studies and establishes that knowledge-skill framework is scientifically a strong framework which can help to build current supply chain competencies among future supply chain managers.

Research limitations/implications

This study considers only a limited number of variables that define the supply chain talent. The framework can be further developed and extended to different industries and countries.

Practical implications

The study identifies knowledge-skill framework which can help to develop a training module for current or aspiring supply chain managers. It also can provide significant input to design university supply chain management program to meet future supply chain manager’s requirements.

Social implications

Include providing the right education and training in support of supply chain operations and in turn serving the community with products and services on time and that too in a most cost effective manner.

Originality/value

This paper develops a new framework for supply chain talent development. This framework has been empirically tested, and major findings and future research directions are highlighted.

Details

Industrial and Commercial Training, vol. 47 no. 5
Type: Research Article
ISSN: 0019-7858

Keywords

Article
Publication date: 3 November 2022

Devinder Kumar and Anupama Prashar

This study examines the effect of human and technological resource bundling on the financial and non-financial performance of third-party logistics (3PL) firms in India.

Abstract

Purpose

This study examines the effect of human and technological resource bundling on the financial and non-financial performance of third-party logistics (3PL) firms in India.

Design/methodology/approach

For achieving the research aim, 248 practitioners from India based 3PL firms were surveyed. The relationships between human and technology resources and firm performance were examined using structural equation modelling (SEM).

Findings

The results of empirical tests revealed that human and technological resources significantly enhance the performance of the 3PL firm. However, the firm's logistic capabilities related to track and trace, order management and final assembly do not mediate this relationship.

Originality/value

This study contributes by examining resource bundling in India's 3PL industry using empirical data and providing knowledge of the relationship between resources and business performance. It guides managers to consciously develop resource capabilities that influence firm performance.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 6 September 2018

Fotis Vouzas and Theano Katsogianni

The purpose of this paper is to present the results of an exploratory literature review investigating the similarities and differences in TQM implementation between 3PL

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Abstract

Purpose

The purpose of this paper is to present the results of an exploratory literature review investigating the similarities and differences in TQM implementation between 3PL organisations and organisations with an in-house logistics function.

Design/methodology/approach

The authors collected all relevant papers covering both types of organisations implementing TQM worldwide in a time period from 1991 until today. The aim was to identify key papers and analyse its contents based on the quality of services provided by these two types of organisations.

Findings

The survey contains information about the forces that encourage managers to implement quality practices in the logistics function, the reasons that impeded the implementation of such a quality programme, the quality methods being used and also the level of their satisfaction with the current quality management in logistics.

Research limitations/implications

This paper only mentioned the principal papers that have been published globally from 1991 – today.

Originality/value

The present study is one of the few that reviewed literature from the year 1991 – today in order to provide a comparison of quality management practices between 3PLs and in-house Logistics organisations.

Details

The TQM Journal, vol. 30 no. 6
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 23 August 2019

Qingyao Wan, Yang Yuan and Fujun Lai

The purpose of this paper is to explore how external pressures, internal capability and transaction attributes of logistics outsourcing synergically influence the extent of…

Abstract

Purpose

The purpose of this paper is to explore how external pressures, internal capability and transaction attributes of logistics outsourcing synergically influence the extent of asset-based and non-asset-based logistics outsourcing.

Design/methodology/approach

Based on the data surveyed from 250 manufacturing companies in China, this study employed fuzzy-set qualitative comparative analysis (fsQCA) to deduce multiple configurations for logistics outsourcing decisions.

Findings

The results suggest that asset-based logistics outsourcing is primarily driven by external imitation pressures or internal demands for logistics technologies, while non-asset-based logistics outsourcing is mainly driven by the demands for external management-based logistics services. Asset specificity plays a positive role in promoting both asset-based and non-asset-based logistics outsourcing. The requirement for third-party logistics (3PL) management capability depends on the outsourcing types and outsourcing causes.

Practical implications

This study provides guidance to practitioners for them to make outsourcing decisions. It suggests that asset-based logistics outsourcing is more appropriate when there are high external imitation pressures or more internal logistics demands, while non-asset-based logistics outsourcing should be used only when a firm needs management-based logistics services. Besides, 3PL users are suggested to outsource their logistics when their 3PL providers are required to make specific investments. In addition, managers should carefully evaluate firms’ capabilities in managing outsourcing relationships.

Originality/value

Previous studies largely ignored the interaction effects of a set of factors on logistics outsourcing decisions, and to date, little research empirically examined how outsourcing is driven in terms of different types of outsourcing. Drawing on the institutional theory, dynamic capability view, and transaction cost theory and overarching under the complexity theory, this study examines how institutional, organizational and transactional factors interplay with each other to influence different types of logistics outsourcing (i.e. asset based and non-asset based). Methodologically, the configural analysis (i.e. fsQCA) is applied to explore complex causal configurations that drive logistics outsourcing.

Details

Journal of Enterprise Information Management, vol. 32 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 15 January 2021

Waqar Ahmed, Arsalan Najmi, Simonov Kusi-Sarpong, Sharfuddin Ahmed Khan, Asad Khushal and Joseph Quartey

This research aims to propose a framework for measuring customer loyalty for third party logistics (3PL) industry by exploring the attributes that are more attractive to customers…

Abstract

Purpose

This research aims to propose a framework for measuring customer loyalty for third party logistics (3PL) industry by exploring the attributes that are more attractive to customers and ascertain the mechanisms for increasing customer loyalty in 3PL industry.

Design/methodology/approach

Data were collected from one hundred and thirty-three (133) respondents who were employees of different industries that outsource 3PL services. The partial least square structural equation modeling (PLS–SEM) was deployed for analysis.

Findings

The results showed that service quality has a significant positive impact on customer orientation, customer satisfaction and relationship quality. On the other hand, customer orientation has been observed to positively impact customer satisfaction but an insignificant impact on customer loyalty and relationship quality. Customer satisfaction has a significant positive impact on relationship quality but an insignificant impact on customer loyalty. Also, relationship quality has a significant positive impact on customer loyalty.

Practical implications

The results recommend that 3PL companies' managers focus more on developing quality relationships with their customers, delivering exemplary service quality and offering customer orientation.

Originality/value

This study will help the stakeholders gain much more understanding and insights on how competitive advantage can be achieved and, consequently, help 3PL become the market leaders.

Details

Benchmarking: An International Journal, vol. 28 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

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