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Article
Publication date: 4 May 2023

Abdul Hafaz Ngah, Ramayah Thurasamy and Heesup Han

The issue is which third-party logistics to engage, and escalating customer complaints about service quality of third-party logistics (3PL) enhances the tendency of online…

Abstract

Purpose

The issue is which third-party logistics to engage, and escalating customer complaints about service quality of third-party logistics (3PL) enhances the tendency of online retailers to switch to another 3PL. The current study seeks to investigate the factors influencing the satisfaction and switching intention of 3PL services among online sellers in Malaysia.

Design/methodology/approach

Applying a purposive sampling method, data were gathered via an online survey among online sellers. Initially, the system gathered 418 respondents, but only 311 were useable for further analysis. Since we operationalised the measures as composites, a combination of reflective and formative measurement in the study and the study focuses on explanatory and predictive purposes, partial least squares structural equation modelling with SmartPLS 4 was applied to test the model developed.

Findings

The results indicated that conflict handling had a positive effect on satisfaction, and satisfaction had a negative relationship with the switching intention of 3PL among the online retailers. Moreover, satisfaction and customer relationship management sequentially mediated conflict handling and switching intention, whereas CRM strengthens the negative relationship between satisfaction and switching intention.

Research limitations/implications

The respondents only limit to the online sellers in Malaysia which based on purposive sampling method, thus the findings cannot be generalised to another countries.

Practical implications

The study offers insightful information for the managers of the 3PL in crafting a better policy to avoid switching behaviour among their customers. The conflict between customers and providers is unavoidable since consumers have unlimited demand and businesses have limited resources. The findings also benefit online sellers and 3PL service providers to create attractive marketing strategies for business sustainability.

Originality/value

The study developed a new model for the 3PL studies using the S-O-R model in introducing conflict handling and customer relationship management as the stimulus, customer's satisfaction as an organism and switching intention as a response. The study introduced single and sequential mediators also contributes to the S-O-R theory to predict the switching intention among the online sellers towards the 3PL providers. Another important contribution, customer relationship management, was confirmed to play a moderating role to influence the relationship between satisfaction and switching intention.

Details

International Journal of Physical Distribution & Logistics Management, vol. 53 no. 7/8
Type: Research Article
ISSN: 0960-0035

Keywords

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: 2 February 2023

Ilias Vlachos and Vasiliki Polichronidou

Third-party logistics providers (3PLs) have significantly evolved during the last decades, yet their role within a supply chain triad has been overlooked; this study examines…

Abstract

Purpose

Third-party logistics providers (3PLs) have significantly evolved during the last decades, yet their role within a supply chain triad has been overlooked; this study examines empirically the 3PLs' role using four established theories: resource-based view, social capital perspective, agency theory and transaction cost economics.

Design/methodology/approach

This study examines the role of 3PLs in four supply chain triads, using the case study approach. Sources of evidence include interviews and secondary data.

Findings

The 3PL had different roles in multi-demand triads as service developer, customer adaptor and customer developer. The 3PL, by offering advanced services, became a service developer. The 3PL as a customer adaptor offered customised services and gain the client's trust. As a customer developer, the 3PL acted on behalf of its client in expanding its operations and meeting competitive needs.

Research limitations/implications

The results of the case study methodology can only be generalised to similar types of 3PL. Supply chain triads are an emerging research field; theories like the resource-based view and transaction cost economics are established in the dyadic context and require further elaboration when applied in triadic contexts.

Practical implications

The findings provide practical insights into the role that 3PL can play in supply chain triads, how they can upgrade their role by long-range planning and extending their services to create supply chain efficiency.

Social implications

Understanding the 3PL's role in triads can improve how companies and economies respond to crises like the recent pandemic outbreak.

Originality/value

It uncovers three different 3PL roles in supply chain triads by using four established theories.

Details

The International Journal of Logistics Management, vol. 35 no. 1
Type: Research Article
ISSN: 0957-4093

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

Case study
Publication date: 31 October 2023

Vardhan Mahesh Choubey, Prasad Vasant Joshi and Yashomandira Pravin Kharde

This case study would help students in understanding the dynamics of logistics and logistics vendor roles and contributions to overall business operations. The case study covers…

Abstract

Learning outcomes

This case study would help students in understanding the dynamics of logistics and logistics vendor roles and contributions to overall business operations. The case study covers real-time information for applying the theoretical knowledge students gain related to the selection of logistics vendor. It would help students to understand and evaluate the dynamics of a new start-up related to cost, profits and dependency; understand and analyze the importance of third-party logistics (3PL) service providers in the supply chain; become aware of the key performance indicators (KPIs) important in the selection of logistics vendor; and develop and create measures for selecting logistics vendors on the basis of KPIs.

Case overview/synopsis

This case study was about an innovative start-up operating in the field of organic edible oils. The company catered to end consumers with its indigenous technology and processes. The innovative and healthy products were appreciated by the consumers, as was reflected in the surging demand figures. With the increasing popularity of organic products, the orders were surging. At the same time, issues such as damaged product delivery, increased cost per delivery of small packages and failure to deliver because of unserved pin codes by their logistics partners were being faced by the company. The case discusses the dilemma faced by the protagonist regarding the selection of the right 3PL partner. The case study is suitable for teaching courses in operations and logistics, supply chain management and entrepreneurship-related courses.

Complexity academic level

This case study is appropriate for postgraduate courses in entrepreneurship, operations management, logistics and supply chain management and general management.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS9: Operations and logistics.

Article
Publication date: 15 November 2023

Hasan Uvet, John Dickens, Jason Anderson, Aaron Glassburner and Christopher A. Boone

This research paper aims to examine two hybrid models of logistics service quality (LSQ) and its influence on satisfaction, loyalty and future purchase intention in a…

Abstract

Purpose

This research paper aims to examine two hybrid models of logistics service quality (LSQ) and its influence on satisfaction, loyalty and future purchase intention in a business-to-consumer (B2C) e-commerce context. This study extends the literature for LSQ by incorporating the second-order assurance quality construct, which comprises personnel contact quality, order discrepancy handling and order returns, into one of the hybrid models.

Design/methodology/approach

A survey-based approach is used to collect data. Participant responses to questions concerning multiple LSQ dimensions and behavioral perceptions from their most recent online shopping experience are measured using structural equation modeling.

Findings

Findings highlight the importance of including a second-order construct assurance quality as a more explanatory model. Results illustrate that online ordering procedures and assurance quality impact customer satisfaction more than other prominent LSQ dimensions. Furthermore, the findings revealed a customer loyalty is a partial mediator between customer satisfaction and future purchase intention. This underscores the significance of improved logistics services as a competitive edge for e-commerce retailers.

Research limitations/implications

Implications are limited to the e-commerce B2C domain.

Practical implications

The findings of this study underscore critical LSQ dimensions that garner greater satisfaction and retention in the online shopping experience. The results indicate that the effective and efficient handling of the initial order and any order problem significantly influences customer satisfaction and reaps the long-term benefits of customer retention.

Originality/value

The authors present and empirically test a hybrid model of LSQ in a B2C e-commerce domain that captures many of the important elements of the customer experience as espoused in the literature.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 3 November 2023

Ziaul Haque Munim, Dhanavanth Reddy Maditati, Sebastian Kummer and Hans-Joachim Schramm

This study aims to explore the gaps concerning the organizational operant resources (OORs) of logistics service providers (LSPs) expected in outsourcing relationships. The study…

Abstract

Purpose

This study aims to explore the gaps concerning the organizational operant resources (OORs) of logistics service providers (LSPs) expected in outsourcing relationships. The study considers the views of both manufacturing firms (M-firms) and LSPs in India and DACH region (Germany, Austria and Switzerland) seeking gaps within and across regions.

Design/methodology/approach

This research employed a survey targeting executives from large M-firms and LSPs in both India and DACH. The perceptions about the importance and improvement expectations of 17 OORs are analyzed. A modified version of importance-improvement analysis (A-B), a novel comparative A-B analysis (CABA) method, has been proposed to identify the importance and improvement gaps in OORs between M-firms and LSPs within and across India and the DACH region.

Findings

There are more gaps between M-firms and LSPs in India compared to DACH. Cross-country comparisons reveal that LSPs in India and DACH have similar perceptions concerning the OORs, but M-firms in India have significantly higher improvement expectations than those in DACH.

Research limitations/implications

This study proposes an analytical approach that enables managers to identify improvement areas and better align with their outsourcing relationship partners. It also highlights aspects that need to be considered while entering emerging markets such as India.

Originality/value

The analysis approach using CABA is novel. Also, among the cross-country studies, this is the first to compare outsourcing relationships in India with the DACH region while involving both users' and service providers' perspectives.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 21 June 2022

Anchal Gupta, Rajesh Kumar Singh, K. Mathiyazhagan, Pradeep Kumar Suri and Yogesh K. Dwivedi

This study aims to identify service quality dimensions for logistics service providers (LSPs) and to examine their relationships with customer satisfaction and customer loyalty.

1918

Abstract

Purpose

This study aims to identify service quality dimensions for logistics service providers (LSPs) and to examine their relationships with customer satisfaction and customer loyalty.

Design/methodology/approach

Service quality dimensions are identified from vast literature review. Customers who take services from LSPs were surveyed to collect data on basis of developed survey instrument. Structural Equation Modelling (SEM) is applied to test the proposed research hypotheses.

Findings

The study shows that all the five service quality constructs, i.e. “Operational Quality”, “Resource Quality”, “Information Quality”, “Personnel Contact Quality” and “Customization and Innovation Quality” have direct relationship with customer satisfaction. They also have indirect relationship with customer loyalty, implying the full mediation of customer satisfaction.

Practical implications

The results of the study suggest that the logistics service quality (LSQ) can be measured multi-dimensionally. It provides clear implications to LSPs for improvement of service quality. The present research work is expected to be useful for both, logistics service providers and the customer organizations, which take services from LSPs. LSPs can develop strategies to improve their service quality on basis of findings from this study.

Originality/value

The present research will help in extending the existing literature on service quality in context to LSPs.

Details

The International Journal of Logistics Management, vol. 34 no. 6
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 12 January 2023

Haidi Zhou, Qiang Wang, Liang Wang, Xiande Zhao and Gengzhong Feng

The authors investigate how logistics digitalization affects two types of third-party logistics (3PL) performance: financial performance and service performance. In particular…

Abstract

Purpose

The authors investigate how logistics digitalization affects two types of third-party logistics (3PL) performance: financial performance and service performance. In particular, the authors explore the mediating role of customer collaboration between logistics digitalization and firm performance based on organizational information processing theory and examine the moderating role of government support.

Design/methodology/approach

The authors use an SPSS macro program (PROCESS regression analysis) to analyze survey data from 235 3PL firms in China. The mediation model, moderation model and moderated mediation model are tested.

Findings

The empirical results show that in the new age of digitalization transformation, logistics digitalization positively affects 3PL's financial performance and service performance by strengthening customer collaboration. Additionally, government support amplifies the positive effect of customer collaboration on service performance but not financial performance. The moderated mediation test further indicates that government support strengthens the positive indirect effect of digitalization on service performance through customer collaboration.

Originality/value

This study offers empirical insights into the growing body of 3PL literature, and the findings contribute to the theoretical and practical understanding of the emerging research topic of digital transformation (DT) and sustainability issues in 3PL firms.

Details

International Journal of Physical Distribution & Logistics Management, vol. 53 no. 4
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 5 December 2022

Nejib Fattam, Tarik Saikouk, Ahmed Hamdi, Alan Win and Ismail Badraoui

This paper aims to elaborate on current research on fourth party logistics “4PL” by offering a taxonomy that provides a deeper understanding of 4PL service offerings, thus drawing…

224

Abstract

Purpose

This paper aims to elaborate on current research on fourth party logistics “4PL” by offering a taxonomy that provides a deeper understanding of 4PL service offerings, thus drawing clear frontiers between existing 4PL business models.

Design/methodology/approach

The authors collected data using semi-structured interviews conducted with 60 logistics executives working in 44 “4PL” providers located in France. Using automatic analysis of textual data, the authors combined spatial visualisation, clustering analysis and hierarchical descending classification to generate the taxonomy.

Findings

Two key dimensions emerged, allowing the authors to clearly identify and distinguish four 4PL business models: the level of reliance on interpersonal relationships and the level of involvement in 4PL service offering. As a result, 4PL providers fall under one of the following business models in the taxonomy: (1) The Metronome, (2) The Architect, (3) The Nostalgic and (4) The Minimalist.

Research limitations/implications

The study focuses on investigating 4PL providers located in France; thus, future studies should explore the classification of 4PL business models across different cultural contexts and social structures.

Practical implications

The findings offer valuable managerial insights for logistics executives and clients of 4PL to better orient their needs, the negotiations and the contracting process with 4PLs.

Originality/value

Using a Lexicometric analysis, the authors develop taxonomy of 4PL service providers based on empirical evidence from logistics executives; the work addresses the existing confusion regarding the conceptualisation of 4PL firms with other types of logistical providers and the role of in/formal interpersonal relationships in the logistical intermediation.

Details

The International Journal of Logistics Management, vol. 34 no. 6
Type: Research Article
ISSN: 0957-4093

Keywords

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