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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…

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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: 7 March 2016

Yangyan Shi, Abraham Zhang, Tiru Arthanari and Yanping Liu

Third-party purchase (3PP) is a new value-added service offered by third-party logistics (3PL) providers. The purpose of this paper is to examine the perception of 3PP service

1994

Abstract

Purpose

Third-party purchase (3PP) is a new value-added service offered by third-party logistics (3PL) providers. The purpose of this paper is to examine the perception of 3PP service from the perspective of 3PL users.

Design/methodology/approach

The authors conducted a survey of Chinese 3PL users and received 242 usable responses. The authors then employed structural equation modeling to test the conceptual model.

Findings

The authors found that the likelihood of 3PL users using a 3PP service is significantly associated with uncertainty, but not with asset specificity or frequency or transaction size. 3PP usage is significantly associated with value-to-client.

Originality/value

This research is the first survey study of 3PP as a value-added service offered by 3PL providers, from the perspective of 3PL users. The findings suggest that 3PL users are very positive about the value of 3PP service. The 3PP market is still in its infancy but it has great potential, especially for commodity items that have less demand uncertainty.

Details

International Journal of Operations & Production Management, vol. 36 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 December 2005

A. Michael Knemeyer and Paul R. Murphy

This paper provides a comparison of users and providers of third‐party logistics (3PL) services with respect to relationship marketing elements, such as trust and communication…

4442

Abstract

Purpose

This paper provides a comparison of users and providers of third‐party logistics (3PL) services with respect to relationship marketing elements, such as trust and communication, as well as relationship marketing outcomes, such as retention and recovery.

Design/methodology/approach

Constructs for the relationship marketing elements and outcomes were derived from the extant literature and modified to reflect the nature of 3PL arrangements. The relevant data were collected from separate, but consistent, mail surveys that were sent to users of 3PL services as well as providers of 3PL services.

Findings

The results indicate statistically significant differences between 3PL users and providers across eight of nine relationship marketing elements, with the lone non‐significant comparison involving the communication construct. There are also statistically significant differences between 3PL users and providers for each of the four relationship marketing outcomes.

Research limitations

Although the present study utilized previously validated relationship marketing elements and outcomes, future research could examine other relationship marketing elements and outcomes. Future research could also investigate relationship marketing issues through dyads/matched pairs of 3PL users and providers.

Originality/value

This manuscript examines 3PL with respect to theories and/or frameworks that comes from outside the logistics discipline, an approach advocated by Stock. Moreover, the paper adds to Moore's 3PL/relationship marketing research by investigating relationship elements and outcomes. The current paper adds to the rather limited literature that incorporates both 3PL user and provider perspectives.

Details

International Journal of Physical Distribution & Logistics Management, vol. 35 no. 10
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 2 February 2015

Chen Liu, Baofeng Huo, Shulin Liu and Xiande Zhao

The purpose of this paper is to test how integrative mechanisms, including information sharing and process coordination, influence logistics outsourcing, and how logistics…

3706

Abstract

Purpose

The purpose of this paper is to test how integrative mechanisms, including information sharing and process coordination, influence logistics outsourcing, and how logistics outsourcing influence performance from an extended RBV perspective.

Design/methodology/approach

The structural equation modeling (SEM) method is used to examine the proposed model, based on data collected from 361 companies in greater China.

Findings

Integrative mechanisms are helpful for logistics outsourcing (basic, customized, and advanced outsourcing). Specially, information sharing contributes to customized and advanced outsourcing, but has no significant effect on basic outsourcing. In contrast, process coordination improves basic and advanced outsourcing, but insignificantly influences customized outsourcing. Besides, each type of logistics outsourcing has differently effects on 3PL users’ performance. This study contributes to 3PL theories and practices.

Originality/value

This study empirically examines the antecedents and the outcomes of logistics outsourcing, contributing to 3PL literature and practices.

Details

Industrial Management & Data Systems, vol. 115 no. 1
Type: Research Article
ISSN: 0263-5577

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: 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…

1016

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: 31 May 2011

Shams Rahman

Over the last two decades, a large number of studies have been conducted in the field of outsourcing third‐party logistics (3PL) services and the field is growing. The purpose of…

4439

Abstract

Purpose

Over the last two decades, a large number of studies have been conducted in the field of outsourcing third‐party logistics (3PL) services and the field is growing. The purpose of this paper is to examine the extent to which 3PL services are outsourced by Australian firms. Specifically, it investigates the motivation for outsourcing, the average length of 3PL contracts, types of logistics services used and the impact of the use of outsourcing logistics services on customer satisfaction, logistics costs and employee morale of the user companies.

Design/methodology/approach

This study is based on a questionnaire survey conducted in Australia. The sample was drawn from companies listed in Dun & Bradstreet's 500 largest Australian firms. Banks and other financial firms, insurance companies and real estate companies were excluded from the list of firms and a total of 210 firms were identified for this study. Data were collected against a number of items pertaining to the extent of 3PL use and its impact on performance.

Findings

The results revealed that the most frequently used logistics functions are warehouse management, order fulfillment and fleet management. The top three factors that motivated the firms to outsource are cost reduction, reduction in capital investment, and enhanced operational flexibility. The level of satisfaction with 3PL service providers is high at 86 percent and is reflected in the indication to continue their use in the future. However, employee morale has been adversely affected in 50 percent of 3PL users.

Originality/value

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

Details

Benchmarking: An International Journal, vol. 18 no. 3
Type: Research Article
ISSN: 1463-5771

Keywords

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.

7803

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 services

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: 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

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