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Article
Publication date: 7 November 2023

Martina Baglio, Claudia Colicchia, Alessandro Creazza and Fabrizio Dallari

An ever-increasing number of companies outsource logistics activities to third-party logistics (3PL) providers to beat the competition. From the buyer's (shippers') perspective…

Abstract

Purpose

An ever-increasing number of companies outsource logistics activities to third-party logistics (3PL) providers to beat the competition. From the buyer's (shippers') perspective, selecting the right 3PL provider is crucial, and from the 3PL provider's perspective, it is imperative to be attractive and to retain clients. To this aim, a potential lever can be physical assets, such as warehouses, which the literature has traditionally neglected. The objective is to benchmark the importance of warehouses for 3PL providers to attract/retain clients and for shippers to select the right 3PL provider.

Design/methodology/approach

The authors performed an empirical investigation through interviews on dyads (3PL providers/shippers) and utilized the Best-Worst Method (BWM) to rank the criteria used in the 3PL buying process and allow the warehouse's role to emerge.

Findings

Results show that the 3PL buying process consists of four phases and three evaluation steps. The selection criteria are classified into three groups: order qualifiers, order winners and retention factors. The warehouse has different levels of importance throughout the process. It appears that it can indirectly enhance the attractiveness and retention capability of 3PL providers through other selection criteria.

Originality/value

By combining the resource-based view and the customer value theory, this research extends the theory on logistics outsourcing by studying the phases of the 3PL buying process and scrutinizing the criteria used in different evaluation steps. The research adds a double perspective of analysis (3PL providers and shippers), which is missing in the literature, and focuses on the importance of warehouses.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 5 October 2015

Baofeng Huo, Chen Liu, Mingu Kang and Xiande Zhao

The purpose of this paper is to develop a theoretical framework involving dependence, relationship commitment, logistics outsourcing and service quality to exhibit the roles of…

2630

Abstract

Purpose

The purpose of this paper is to develop a theoretical framework involving dependence, relationship commitment, logistics outsourcing and service quality to exhibit the roles of the relational factors involved in logistics outsourcing and their outcomes.

Design/methodology/approach

Based on data collected from 361 companies in Greater China, the authors use the structural equation model approach to examine the hypothesized relationships.

Findings

Both normative and instrumental relationship commitment are necessary for third party logistics (3PL) users to cope with their goal dependence on 3PL providers. However, only normative relationship commitment is necessary when users perceive switch dependence. Normative relationship commitment also plays a more important role than instrumental relationship commitment in facilitating the adoption of 3PL logistic outsourcing. In addition, both basic and advanced outsourcing practices have a positive effect on service quality.

Originality/value

This study contributes to both 3PL theories and practices by clarifying how relationships between 3PL users and providers in China are managed.

Details

International Journal of Physical Distribution & Logistics Management, vol. 45 no. 9/10
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 2 October 2017

Baofeng Huo, Chen Liu, Haozhe Chen and Xiande Zhao

The purpose of this paper is to investigate relationships among dependence, trust, and integration in the Chinese 3PL context. 3PL integration is manifested in two key dimensions…

1347

Abstract

Purpose

The purpose of this paper is to investigate relationships among dependence, trust, and integration in the Chinese 3PL context. 3PL integration is manifested in two key dimensions: information sharing and process coordination.

Design/methodology/approach

This study develops a dependence-trust-3PL integration-performance model and tests it using structural equation modeling with survey data collected from 361 companies in the Greater China area (i.e. mainland China, Hong Kong, and Taiwan).

Findings

The results show that switch dependence is indirectly related to information sharing and process coordination through goodwill trust, while goal dependence has direct links with both integrative behaviors. The authors also found that only goodwill trust mediates the relationship between dependence and integrative behaviors, while ability trust does not mediate any relationships. Finally, the analysis validated the direct link between process coordination and financial performance, but did not find a significant link between information sharing and financial performance.

Originality/value

Different from most previous studies on similar topics, this study examines the impacts of different types of dependence and trust on different 3PL integration dimensions. As a result, the findings are more specific and have direct relevance to effective 3PL relationship management in China.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 2 October 2017

Yongyi Shou, Jinan Shao and Anlan Chen

Drawing upon the theory of the resource-based view, the purpose of this paper is to examine the relationships among relational resources, innovation capability and firm…

1786

Abstract

Purpose

Drawing upon the theory of the resource-based view, the purpose of this paper is to examine the relationships among relational resources, innovation capability and firm performance in the third-party logistics (3PL) industry.

Design/methodology/approach

Based on data collected from 203 3PL providers in China, this study adopts the approach of structural equation modeling to examine the hypothesized relationships among relational resources, innovation capability and firm performance.

Findings

The results of this research confirm that relational resources have a positive effect on firm performance. However, the effect is not direct, but realized through the mediation of innovation capability. This study indicates that relational resources are important for 3PL providers to achieve superior performance, and innovation capability plays a mediating role between relational resources and firm performance.

Originality/value

The main contributions of this paper to the literature are twofold. First, it extends the extant research by highlighting the mediating mechanism of innovation capability in relational resources’ influence on firm performance. Second, it advances the existing perspectives on 3PL firms in the Chinese context and this sheds light on logistics research on emerging markets.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 11 January 2016

Bang-Ning Hwang, Tsai-Ti Chen and James T. Lin

The purpose of this study was to identify the key third-party logistics (3PL) selection criteria for the integrated circuit (IC) manufacturing industry in Taiwan. The IC…

3053

Abstract

Purpose

The purpose of this study was to identify the key third-party logistics (3PL) selection criteria for the integrated circuit (IC) manufacturing industry in Taiwan. The IC manufacturing industry seeks global sourcing, and is facing increasing pressure due to fierce market competition. More than a cost reduction strategy, 3PL is a strategic tool for IC manufacturers to gain a competitive advantage in a global supply chain complex.

Design/methodology/approach

The triangulation method that combines qualitative and quantitative approaches was used in the study. The qualitative approach of focus group discussions was adopted to establish the decision framework, and the quantitative approach of the analytic hierarchy process was used to explore the relative importance of the 3PL selection criteria. Finally, an in-depth proof-by-example interview was undertaken to provide an insightful interpretation of the research results.

Findings

The research shows that performance is the most important criterion group, followed by cost, service, quality assurance, intangible and information technology. At the detailed sub-criteria level, document accuracy, problem-solving capability, continuous cost reduction, value-added services and associated cost control capability are the top five criteria.

Research limitations/implications

This study focused on the IC manufacturing sector in Taiwan. Multi-country and multi-industry studies are recommended to help further validate and generalise the research findings.

Originality/value

Due to its application of triangulation, this study is a pioneering work on the 3PL selection criteria in a high-tech manufacturing industry. Furthermore, the value of this research is that it enhances the body of knowledge of 3PL selection by identifying certain emerging selection criteria, it could serve as a guideline for IC manufacturers in planning logistics outsourcing actions and it could significantly contribute to the efforts of 3PL providers in evaluating whether they comply with customer needs and adhere to core competency development.

Details

Supply Chain Management: An International Journal, vol. 21 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 9 May 2016

Kannan Govindan, Roohollah Khodaverdi and Amin Vafadarnikjoo

Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL providers has become a main…

4077

Abstract

Purpose

Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL providers has become a main approach for companies to offer better customer service, reduce costs, and gain competitive advantage. This paper identifies important criteria for 3PL provider selection and evaluation, and the purpose of this paper is to select 3PL providers from the viewpoint of firms which were already outsourcing their logistics services.

Design/methodology/approach

This study utilized the grey decision-making trial and evaluation laboratory (DEMATEL) method to develop 3PL provider selection criteria. Because human judgments are vague and complicated to depict by accurate numerical values, the grey system theory is used to handle this problem.

Findings

The findings revealed the structure and interrelationships between criteria and identified the main criteria for 3PL provider selection. The most important criteria for 3PL provider selection are on time delivery performance, technological capability, financial stability, human resource policies, service quality, and customer service, respectively.

Practical implications

The paper’s results help managers of automotive industries, particularly in developing countries, to outsource logistics activities to 3PL providers effectively and to create a significant competitive advantage.

Originality/value

The main contributions of this paper are twofold. First, this paper proposes an integrated grey DEMATEL method to consider interdependent relationships among the 3PL provider selection criteria. Second, this study is one of the first studies to consider 3PL provider selection in a developing country like Iran.

Details

Industrial Management & Data Systems, vol. 116 no. 4
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 3 July 2017

Gino Marchet, Marco Melacini, Sara Perotti, Chiara Sassi and Elena Tappia

The resources and mechanisms required to complete a value proposition are generally considered as crucial aspects in designing a company business model. However, research in the…

2301

Abstract

Purpose

The resources and mechanisms required to complete a value proposition are generally considered as crucial aspects in designing a company business model. However, research in the third party logistics (3PL) arena concerned with studying how 3PL providers define their value creation architecture to meet different shippers’ requirements has so far been inadequate. The purpose of this paper is to fill the gap, providing a detailed investigation on how the 3PL providers’ capabilities and logistics expertise can add value to their shippers’ processes.

Design/methodology/approach

A qualitative exploratory research was conducted involving, first, a systematic combining process to understand the main factors and operational strategies whereby 3PL providers can create value and build a comprehensive framework of their value creation architecture. Second, a qualitative survey was conducted on 44 leading 3PL providers operating in Italy to understand how these providers can organise themselves to create value for shippers.

Findings

The 3PL providers’ value creation architecture is presented within a clear and comprehensive framework, together with 30 potential operational strategies that can be used by 3PL providers and the related factors that enable value to be created for shippers. Three main value creation models (volume-oriented 3PL providers, process-oriented 3PL providers and innovation-oriented 3PL providers) are identified. The importance of the different factors enabling value creation is highlighted for each model, identifying the distinctive operational strategies and those adopted most frequently.

Practical implications

From a managerial perspective, 3PL providers will find these results useful for developing suitable strategies to compete on the market. From their side, shippers can understand and evaluate how 3PL providers are able to offer value to their logistics processes, allowing them to select the logistics partner who best fits their needs.

Originality/value

The present paper fulfils the identified need of examining the 3PL providers’ business model in detail. A set of distinct value creation models is identified and thoroughly investigated to reveal the different competitive advantages available to shippers.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 6
Type: Research Article
ISSN: 0960-0035

Keywords

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: 22 March 2011

S.I. Lao, K.L. Choy, G.T.S. Ho, Y.C. Tsim and N.S.H. Chung

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

1856

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.

Details

Measuring Business Excellence, vol. 15 no. 1
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 9 January 2017

Yangyan Shi, Tiru Arthanari and Lincoln Wood

This paper aims to examine the opportunity for third-party logistics providers (3PLs) to develop further value-added services for their clients, focused on purchasing. The provider

1578

Abstract

Purpose

This paper aims to examine the opportunity for third-party logistics providers (3PLs) to develop further value-added services for their clients, focused on purchasing. The provider perspectives on third-party purchase (3PP) services are examined in conjunction with their business environment, with a survey informed by transaction cost economics.

Design/methodology/approach

New Zealand 3PL providers were surveyed, and 166 responses were received. Structural equation modeling was used to test the conceptual model.

Findings

From the perspective of 3PL providers, uncertainty, frequency and transaction size, but not asset specificity, are significantly associated with client value from a 3PP service. While asset specificity in investments is not required by 3PLs, they need a high frequency of orders, sufficient order size and low levels of uncertainty as supporting conditions for the development of 3PP services.

Research limitations/implications

The sample focuses on 3PL providers and therefore does not address the behavioral characteristics of users or customers of the services.

Originality/value

This study shows that 3PP services may be further developed by 3PL providers to improve the value offered to their clients.

Details

Supply Chain Management: An International Journal, vol. 22 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

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