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1 – 10 of over 1000
Article
Publication date: 1 June 2006

Pilar Arroyo, Juan Gaytan and Luitzen de Boer

To investigate the status of third party logistics (3PL) in Mexico and the feasibility of 3PL as a global, uniform strategy.

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Abstract

Purpose

To investigate the status of third party logistics (3PL) in Mexico and the feasibility of 3PL as a global, uniform strategy.

Design/methodology/approach

A survey among firms located in the central part of Mexico, followed by a comparison of the results with data from existing 3PL studies of Europe and the USA.

Findings

3PL seems a common but “low profile” practice among large Mexican firms. Only a third outsources more than three functions, which are mostly supportive and operational. Compared to Mexico, 3PL use is higher in Europe and USA. Firms in Europe and USA focus more on tactical, integrated functions and cost reduction when using 3PL while Mexican firms aim for improved customer service and concentration on core activities. The lack of competitive local providers makes 3PL expensive and may favour larger, international providers.

Research limitations/implications

The results warrant additional surveys of Mexico and other developing regions, preferably using a unique survey design and covering more SME's. Case studies are needed to further investigate how multinational firms manage the 3PL decision process on different organizational and regional levels.

Practical implications

Uniform, global 3PL strategies should be considered with care: what may work in Europe may not work in Mexico or the USA. Outsourcing should be seen as a means and not as an end. Mexican firms can use 3PL successfully yet achieve different ends than European firms. Mexico's large SME market offers opportunities for providers of 3PL services.

Originality/value

This is the first thorough study about outsourcing logistics practices in Mexico, which adds a Latin‐American perspective to the very few 3PL studies conducted in developing regions. In addition, the comparison of Mexican outsourcing practice with practices across the USA and Europe offers a cross‐cultural view on 3PL and identifies the need for further mapping of expectations and conditions related to effective outsourcing of logistics in other regions.

Details

International Journal of Operations & Production Management, vol. 26 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 21 January 2020

Ilias Vlachos and Selvie Carolin Dyra

Supply chains are becoming more complex and uncertain, yet existing theories are predominately based on empirical research of dyads overlooking triadic settings. This study aims…

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Abstract

Purpose

Supply chains are becoming more complex and uncertain, yet existing theories are predominately based on empirical research of dyads overlooking triadic settings. This study aims to bridge the gap between supply chain theories and praxis, this study examined multi-sourcing triads in terms of coordination, collaboration and integration.

Design/methodology/approach

Transaction cost economics, resource-based view in conjunction with social capital theory and agency theory were used to develop a research framework. Abductive, comparative research examined four triads. The triads comprised four retailers (EU, USA, Japan and one with a global presence), one third-party logistics provider (3PL) and 103 suppliers in textiles and the clothing industry.

Findings

All multi-sourcing triads achieved efficient coordination via network configuration showing varying degrees of collaboration and integration. Three research propositions were developed as follows: transaction complexity and dynamics necessitate triad coordination and control by the 3PL; relational and structural embeddedness emerge when actors invest in triad-specific resources and capabilities; information, relational and structural asymmetries may trigger bridge transfer and affect triad integration and performance.

Research limitations/implications

Empirical research on multi-sourcing triads complements existing research on logistics and service, transitive triads to uncover how triad coordination, embeddedness and power asymmetries affect supply chain performance. Future studies should examine the interrelationships between triad embeddedness, asymmetries and relational capital.

Practical implications

Compared to logistics or service triads, B3B triads excel in relational and structural embeddedness and offer unique production-distribution solutions that create value to end-consumers and triad actors.

Originality/value

B3B triads are a unique conceptualization in supply chain management that extends the concepts of logistics triads and service triads.

Article
Publication date: 23 September 2019

Bayu Khresna Sangka, Shams Rahman, Aswini Yadlapalli and Ferry Jie

The purpose of this paper is to identify and prioritise competencies of Indonesian third-party logistics (3PL) managers from the perspective of multinational corporations (MNCs…

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Abstract

Purpose

The purpose of this paper is to identify and prioritise competencies of Indonesian third-party logistics (3PL) managers from the perspective of multinational corporations (MNCs) and local firms.

Design/methodology/approach

Underlined by the theory of action and job performance (competency model), the study proposes a framework that consists of management, logistics, business and information and communication technology competency categories, with 15 competencies. Data are collected from five MNCs and five local 3PL firms operating in Indonesia. The analytic hierarchy process method is used to calculate the priority weights and to prioritise the competencies.

Findings

Results indicate that both the local and MNC 3PL providers emphasise logistics as the “most important” competency category. In the “moderately important” competency group, MNCs prioritise competencies in the management competency category while local firms prioritise competencies in the business competency category.

Research limitations/implications

Results obtained in this study focus on 3PL firms in Indonesian businesses, which may not be applicable to other nations and other industries.

Practical implications

3PL firms, industry peak bodies (e.g. Indonesian Logistics Association) and education providers can benefit from incorporating the findings of this study in developing curricula for higher education and training programmes for certification designed to improve managerial competencies.

Originality/value

By including the perceptions of the MNCs and local 3PL providers, this study advances the literature on 3PL managerial competencies by extending such knowledge to the global environment.

Details

The International Journal of Logistics Management, vol. 30 no. 4
Type: Research Article
ISSN: 0957-4093

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: 27 October 2021

James Midgley and Ozlem Bak

The third-party logistics (3PL) provider has faced significant change since containerisation with the broadening scope of supply chains and technological developments. With these…

Abstract

Purpose

The third-party logistics (3PL) provider has faced significant change since containerisation with the broadening scope of supply chains and technological developments. With these changes, the required supply chain skills discussions have covered mostly graduate skills or employees' skills with a limited discussion to what extent and whether senior management skills were changing. Hence, 3PL senior management skill requirements will be compiled based on existing studies and assessed to check whether these are still relevant and if so to what extent for today's 3PL senior managers.

Design/methodology/approach

A questionnaire has been devised based on 3PL senior management skills identified in the academic literature and sent out to senior managers via professional social networks of 3PL. Based on the previous literature, the senior managers selected had to fulfil the selection criteria of a minimum five years' managerial experience in a 3PL, and a minimum of ten years' experience in general, which limited the sample size to twenty-seven senior managers in the 3PL sector.

Findings

The findings indicated that 3PL senior managers’ skills highlighted an increasing dependence on and importance of relational and behavioural skills, particularly when compared with the more traditional functional and managerial skills. The study indicated that the 3PL senior managers highlighted an increasing dependence and importance upon relational and behavioural skills, particularly when compared with the more traditional functional skills.

Research limitations/implications

The study has explored the senior management skills in 3PL in the UK, albeit the respondents possessing diverse backgrounds. Therefore, it would be beneficial to test whether these findings are exemplary across the wider 3PL sector, not only in the UK but also across Europe to see how corporate agenda for executive supply chain skills could be devised.

Practical implications

Corporate supply chain training and development staff can develop specific programs based on the 3PL senior management skill sets especially on relational and behavioural skills, which are needed for future managers as well as up-skill senior managers' skills which are deemed to be most important in the current 3PL market.

Originality/value

This paper contributes to the supply chain skills discussion and reports subject relevant challenges for today’s senior management in the 3PL industry. The findings have generated preliminary discussions on whether senior management skills are changing with the broadening scope of supply chains.

Details

Benchmarking: An International Journal, vol. 29 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

Open Access
Article
Publication date: 1 November 2022

Mbali Cynthia Valashiya and Rose Luke

This study evaluated the enhancement of information sharing practices with third party logistics service providers (3PLs) in a supply chain solutions company that provides…

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Abstract

Purpose

This study evaluated the enhancement of information sharing practices with third party logistics service providers (3PLs) in a supply chain solutions company that provides transport and warehousing software in Johannesburg, South Africa.

Design/methodology/approach

A mixed methods case study was conducted to investigate the problem. Both strands of quantitative and qualitative data were given equal priority. Three rounds of primary data were sequentially collected, analysed and triangulated. An online questionnaire was distributed to a sampling frame of seventeen companies which were randomly selected from the population. Three company executives were purposively sampled to participate in a focus group interview. Data from an open-ended questionnaire were used to explain and validate the findings from clients and executives who participated in the two preceding rounds of data collection.

Findings

It was found that information sharing improves the collaboration of channel members, increases competitive advantage and ultimately leads to better customer service. The improvement of relationships and continuous technological upgrades are recommended for improving visibility of information and effectiveness in the management of supply chains.

Research limitations/implications

This study is limited by the characteristics of the case study methodology. Case study research suffers from restricted generalisability, problems with cross-checking and the risk of bias and subjectivity. This implies that the results of this case study may not be generalised to the overall population. The selection of a mixed methods design was intended to curb the limitations that are inherent to this study.

Practical implications

This study was limited to a few respondents and participants, which raises concerns about both the statistical power and the generalisability of the results. However, the results provide useful insights into some of the information sharing practices in the industry.

Originality/value

The value of the study contributes to the supply chain's dependence on 3PLs for value creation and the reliance on technology to share information amongst channel members. This study highlights a need for organisations to build collaborative relationships with 3PLs and continuously update technological infrastructure in order to meet supply chain network goals.

Details

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

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…

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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: 10 August 2010

Kristin J. Lieb and Robert C. Lieb

The purpose of this paper is to document the extent to which large third‐party logistics (3PL) companies have committed themselves to environmental sustainability goals. It also…

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Abstract

Purpose

The purpose of this paper is to document the extent to which large third‐party logistics (3PL) companies have committed themselves to environmental sustainability goals. It also aims to examine the sustainability initiatives undertaken by those companies and the impact of those initiatives on the 3PL and their customers. Finally, the research seeks to examine the impact of the global recession of 2008‐2009 not only on the commitment of the 3PL to their sustainability goals but also on how the recession impacted 3PL customer interest in such goals.

Design/methodology/approach

The data upon which this paper is based was generated in two annual surveys of the chief executive officers of 40 large 3PL companies operating in North America, Europe, and the Asia‐Pacific region. These surveys were conducted in 2008 and 2009 and were part of a long‐term series of annual surveys that began in 1994.

Findings

The findings indicate that nearly all of the companies involved in the surveys have made substantial commitments to environmental sustainability goals during the past several years and that they have launched a broad range of related projects that have had quite positive impacts on those companies. Despite the recession, none of the 3PL scaled back their commitment to those goals; in fact, many launched new sustainability projects during that period. 3PL customers have also shown increasing interest in the environmental sustainability capabilities of the 3PL.

Originality/value

The paper effort represents the first large‐scale effort to document the commitment of large 3PL to environmental sustainability goals.

Details

International Journal of Physical Distribution & Logistics Management, vol. 40 no. 7
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: 7 October 2014

Albert Wee Kwan Tan, Zhao Yifei, Dali Zhang and Olli-Pekka Hilmola

The purpose of this paper is to identify global trends in the third-party logistics (3PL) industry, and with that to find out where the opportunities and challenges lie, what the…

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Abstract

Purpose

The purpose of this paper is to identify global trends in the third-party logistics (3PL) industry, and with that to find out where the opportunities and challenges lie, what the critical success factors are, and how companies can position themselves well in China. As there is currently very limited knowledge about the 3PL industry in China, this study also intends to shed light in this area.

Design/methodology/approach

The study is conducted through focus group interviews with senior executives of leading 3PL companies in China followed by a survey with 70 logistics companies.

Findings

The key strengths of the logistics industry in China include numerous factors such as good connectivity and new infrastructure, while its main weaknesses are a shortage of qualified staff and slow adoption of technologies. There are a number of concerns and issues raised, such as lack of qualified staff, oversupply of warehousing space in China, competition from the influx of foreign 3PL companies to China, and regulations on free trade zones, seaports and airports, all of which may have policy implications.

Research limitations/implications

As most of the logistics companies in the study are located and dominating in the Eastern and Southern China, it may be useful to conduct similar study in the new emerging western and central regions of China for comparison.

Practical implications

Managers and investors will appreciate the challenges and opportunities in logistics services in China and have a better insight into Chinese logistics development.

Originality/value

While China has been viewed as a cost effective place for manufacturing, the logistical costs in China are still very high as compared to other developed countries. This research will highlight the key reasons for the high logistical cost in China.

Details

Industrial Management & Data Systems, vol. 114 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

1 – 10 of over 1000