Innovative Logistics Practices: Performance Assessment of Third-party Logistics Services Providers in Malaysia

Abstract

In the contemporary business global sphere, it is so problematic, if not impossible, for an organization to be competitively deprived of working in alliance, closely with external associates. The idea of Supply Chain Management, (SCM), arose in this track and strives to optimally manage the physical goods and/or services. Logistics is the key competitive factor in the manufacturing sector because of the innovative models’ variants and options. For instance, in Malaysia, the manufacturing sector is a major contributor to the annual GDP, hence, there is a need for sustainable technology that can project significant business operations and supply chain management impacts. But this is far from being the case in the contemporary. Based on the increasing logistics benefits, the importance of the assessment of logistics efficiency and impact is attracting increased consideration. Green Logistics (GL) involves not only the delivery of green products or services to customers but also the inclusive logistics flow of items from cradle to grave in addition to reverse logistics. Numerous green events and operations have been instigated, such as manufacture scheduling and network construction. This article aimed at investigating the innovative logistics practices relationship with the operations of third-party logistics service providers in Malaysia. To achieve this, the study engages a structured questionnaire survey. 256 questionnaire was retrieved out of 333 questionnaires distributed electronically and 27 questionnaires were rejected based on some parallel errors and 229 questionnaires was eventually analyzed This is 69% of the questionnaire. In the analysis, SPSS version 20 was utilized. The outcome showed that selection of vehicle type and procurement on quality, cost, and environmental impacts as the main feature of innovation in sustainability. Innovative green logistics serve as a moderating factor in the relationship between 3PLs service provider’s key performance factors and green logistics in the Manufacturing industry of Malaysia. Hence, it fulfills one of the key economic growth activities or operations under strategic thrust 2 of SPV2030.