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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: 1 February 2002

Amrik S. Sohal, Robert Millen and Simon Moss

Examines the use of third‐party logistics services by Australian firms over the period 1995 to 1999. It is based on a questionnaire survey that was initially conducted in 1995 and…

2568

Abstract

Examines the use of third‐party logistics services by Australian firms over the period 1995 to 1999. It is based on a questionnaire survey that was initially conducted in 1995 and repeated in late 1999. The questionnaire addressed: the extent to which the firms use the services of contract logistics companies; the specific contract logistics services used; the benefits which have emerged for the user firms; the obstacles encountered in implementing contract logistics relationships; the impact of the use of contract logistics services on costs, customer satisfaction and employees of the user firm; and the future plans of current users of such services. Notable differences showed between the results from 1995 and those obtained in 1999. Of particular interest is the apparent centralisation of the decision making in regard to employing such services and the involvement of managers outside the logistics area. Also, more firms are utilising third‐party contract logistics companies for international purposes, and are signing longer contracts with their providers. The study identifies a number of concerns for providers that need to be addressed.

Details

International Journal of Physical Distribution & Logistics Management, vol. 32 no. 1
Type: Research Article
ISSN: 0960-0035

Keywords

Book part
Publication date: 4 December 2014

Maria Björklund and Helena Forslund

This study aims to illustrate how retail chains with a green image align sustainable logistics actions, logistics measurements and contracts with logistics service providers…

Abstract

Purpose

This study aims to illustrate how retail chains with a green image align sustainable logistics actions, logistics measurements and contracts with logistics service providers (LSPs), and to develop a classification model that allows for a description of the various shades of green within companies.

Design/methodology/approach

We carried out a multiple case study of four retail chains with a green image operating in the Swedish market, collecting empirical data from the retail chains’ sustainability reports and home pages and conducting interviews with logistics, transportation and supply chain managers.

Findings

Based on the literature, we developed a classification model for judging green image, green logistics actions, green measurements and green contracts. The model is used to illustrate the different shades of green found within the respective retail chains. A green image seems well-aligned with green logistics actions. However, there are more levels to judge, and the measurement systems are not sufficiently developed to track green logistics actions. Contract handling is more developed among retail chains than measurements, which is positive, as this is a way of ensuring that LSPs are involved. In our classification model, greenwashing can be judged in a more nuanced way, delving deeper under the surface.

Research limitations/implications

The provided classification model adds to our knowledge and illustrates the alignment within companies’ sustainable logistics. The robustness of the model can be strengthened by applying it to a larger number of cases and by continually validating its content and evaluation criteria.

Practical implications

The study’s main practical contribution is the classification model, which may potentially serve as a method for managers to easily judge the green alignment of a retail chain’s logistics.

Originality/value

Few empirical studies capture how retail chains measure environmental logistics performance, and even fewer concern contracts stipulating the environmental demands placed on LSPs.

Details

Sustainable Logistics
Type: Book
ISBN: 978-1-78441-062-9

Keywords

Article
Publication date: 6 July 2015

Kostas Selviaridis and Andreas Norrman

The purpose of this paper is to explore key challenges of adopting, designing and managing performance-based contracts (PBC) for advanced logistics services, as seen by providers…

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Abstract

Purpose

The purpose of this paper is to explore key challenges of adopting, designing and managing performance-based contracts (PBC) for advanced logistics services, as seen by providers. The shift toward performance-based solutions has proved challenging since providers often struggle to link performance to their payment. Despite such managerial challenges, empirical research in this area has been limited.

Design/methodology/approach

A multi-case design was adopted. Three cases of logistics service providers were selected based on purposive sampling. Data were collected through 38 semi-structured interviews and review of 43 documents such as contracts and customer target letters.

Findings

Key PBC adoption challenges include customer and provider intention to align their goals and incentives as well as their views on risk and reward sharing. Contract design challenges center around performance metric definition and weighting, designing performance monitoring systems that consider service co-production effects and help improve customer relationship and designing incentives with appropriate intensity levels. Contract management challenges include fostering provider pro-activity, provider changes in terms of processes and resource investments, perceived fairness of designed incentives and contract re-design to allow for win-win relationship outcomes.

Research limitations/implications

The study empirically contributes to extant logistics service provider literature by identifying specific challenges that extend also beyond PBC adoption and design and cover contract management (and potential contract re-design). It also unpacks the notion of performance attributability by analyzing its role also in terms of contract and performance management as well as its potential effects on customer relationship management.

Practical implications

The study presents implications for logistics provider managers regarding how the observed PBC challenges can be overcome.

Originality/value

The study unearths several challenges of PBC for advanced logistics services, particularly in connection to contract management and re-design.

Details

International Journal of Physical Distribution & Logistics Management, vol. 45 no. 6
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 24 August 2020

Alexandre Simon, Herbert Scheidl, Renan Stenico Campos and Gleison Matana

This paper analyzes managerial practices currently used for outsourced logistics activities in mechanized cutting, loading and transportation (CLT) of sugarcane in a Brazilian…

Abstract

Purpose

This paper analyzes managerial practices currently used for outsourced logistics activities in mechanized cutting, loading and transportation (CLT) of sugarcane in a Brazilian company using performance-based logistics contracts (PBL) as reference.

Design/methodology/approach

The methodology draws on literature review, design of an analysis model, small group meetings with academics/industry professionals and practical application through a case study. The model is based on PBL and its construction involved choosing the analysis axes, defining evaluation items and respective measurement scale and the means and sources of data collection.

Findings

When comparing the evaluation results with PBL recommendations, it is possible to see that there are still many improvement opportunities. In contracting axis, decision-making process was poor-rated due to the absence of strategic considerations to support outsourcing decision. Procurement, contract and implementation are in intermediate level. Performance management is the most mature axis. However, quality analysis showed intermediate level. In relationship axis, the most relevant gap is the lack of expectations alignment. Remaining items showed intermediate levels of compliance but still need focusing on communication, establishing a structured relationship management development.

Originality/value

This study contributes first to develop an analysis model based on PBL to evaluate the level of relationship integration between company and logistics service provider, and second, to apply the model to an empirical case in a CLT company operation. As a result, the analysis model presents guidelines for the company, not to just contract/rent equipment and manpower but hire results.

Details

International Journal of Productivity and Performance Management, vol. 70 no. 7
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 1 March 1997

Robert Millen, Amrik Sohal, Peter Dapiran, Robert Lieb and Luk N. Van Wassenhove

States that more firms are locating operations in Australia to serve the domestic market and as a base for entering other Asian markets. Many of these firms will outsource at…

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Abstract

States that more firms are locating operations in Australia to serve the domestic market and as a base for entering other Asian markets. Many of these firms will outsource at least part of their logistics function and this is a growing trend throughout the world. Describes how a mail survey of the major operating units at the largest firms in Australia was conducted to determine the current extent of logistics outsourcing in Australia. Provides the results from this survey together with responses from earlier studies on the usage of contract logistics services in the USA and Western Europe for comparative purposes.

Details

Benchmarking for Quality Management & Technology, vol. 4 no. 1
Type: Research Article
ISSN: 1351-3036

Keywords

Article
Publication date: 1 December 1996

Peter Dapiran, Robert Lieb, Robert Millen and Amrik Sohal

Provides information relating to the experiences of Australian firms using third party logistics services (outsourcing of logistics functions being a business dynamic of growing…

5464

Abstract

Provides information relating to the experiences of Australian firms using third party logistics services (outsourcing of logistics functions being a business dynamic of growing importance in Australia). Presents conclusions from a survey showing that many of Australia’s largest firms utilize the services of contract logistics providers and some other firms are considering doing so. Provides insights in planning for implementation, for example, the need to educate the third party logistics services provider about the firm’s requirements and also information for the providers of the services.

Details

International Journal of Physical Distribution & Logistics Management, vol. 26 no. 10
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 3 August 2012

Mari Olander and Andreas Norrman

This paper aims to study an advanced third/fourth party logistics (3/4PL) relationship in which the logistics service provider extended normal services by taking ownership of the…

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Abstract

Purpose

This paper aims to study an advanced third/fourth party logistics (3/4PL) relationship in which the logistics service provider extended normal services by taking ownership of the goods during global distribution. It also aims to describe and analyze the approach to the legal rules a 3/4PL provider and its client company took in their contract, and present some remarks on the extent to which these contract solutions are legally sound.

Design/methodology/approach

A cross‐functional (business law and logistics) approach is applied to a single case study. The main data source is a written contract, complemented by in‐depth interviews with the 3/4PL's managing director. A legal analysis is made from four perspectives of non‐mandatory and mandatory commercial legal rules.

Findings

Issues between the offered service, the legal function and reaction in contracts are pointed out, e.g. doubts regarding the legal risk of sales uncertainty, the ownership of goods, the product liability, and the roles as commercial agent and as freight forwarding agent. These kinds of advanced logistics services are not clearly handled, e.g. in the standard‐form contracts for freight forwarding.

Research limitations/implications

The research is limited to one case and to some aspects of Swedish commercial law, but put in an international perspective. It adds a legal perspective to previous studies on 3/4PL contracts, and it contributes to legal research by its analysis of how firms in real life react to law in their contracts.

Practical implications

Practitioners can get inspiration from an innovative logistics service setup, but also realize what legal challenges to consider when they make their contracts. A tentative approach to aligning logistics' and lawyers' work is suggested.

Originality/value

The paper combines legal and logistics research, and description/analysis of a 3/4PL case where ownership of the goods is transferred to the service provider.

Details

International Journal of Physical Distribution & Logistics Management, vol. 42 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 November 1999

Rohit Bhatnagar, Amrik S. Sohal and Robert Millen

Focusses on three constructs that we believe are the primary determinants of the future usage of third party logistics services. These constructs are: extent of use of the third…

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Abstract

Focusses on three constructs that we believe are the primary determinants of the future usage of third party logistics services. These constructs are: extent of use of the third party logistics services; decision making process for choosing contract logistics services provider; and impact of the usage of contract logistics services on the organisation. An empirical research was carried out in Singapore to study the impact of these three factors on the future usage of third party logistics services in Singapore. Results based on an analysis of data relating to 126 Singapore‐based firms indicate that most users of these services are satisfied with their providers and believe that this has led to positive developments within the organisation. With a high current level of satisfaction, a large number of these firms are likely to increase their usage of contract logistics services moderately or substantially.

Details

International Journal of Physical Distribution & Logistics Management, vol. 29 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 October 2002

Jay Sankaran, David Mun and Zane Charman

Reports an inductive, qualitative investigation into third party logistics contracts in New Zealand. The objective of the study was to uncover managerial insights into effective…

2849

Abstract

Reports an inductive, qualitative investigation into third party logistics contracts in New Zealand. The objective of the study was to uncover managerial insights into effective logistics outsourcing that are appropriate to the New Zealand context. A salient feature of the research is the methodology that involved going back‐and‐forth between data gathering (the principal source of data was flexible interviews) and analysis, which was conducted through formal coding techniques. Analysis reveals that the third party provider’s refraining from premature monetary commitments is an instrumental variable in the effectiveness of third party logistics contracts in New Zealand. Also uncovers how the uniqueness of the NZ context shapes third party logistics in NZ.

Details

International Journal of Physical Distribution & Logistics Management, vol. 32 no. 8
Type: Research Article
ISSN: 0960-0035

Keywords

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