Supply chain integration with third-party logistics providers

Abstract

This study used the support of extant theory to propose that there are significant differences in the postures of firms that include logistics providers in their supply chain management efforts versus those that do not. Further, we identified four supply chain management constructs as being important factors in predicting firm performance, and then compared their levels of perceived importance of these factors across the two groups of firms. Our analysis supports the premise that information integration, 3PL selection criteria, performance evaluation, and relationship building are positively correlated with firm performance. Also, our results show that firms that include 3PLs in their supply chain management efforts emphasize certain supply chain management constructs to a higher extent compared to firms that exclude 3PLs in their supply chain management efforts. The results of this study can be used in a Pareto sense of focusing on a few vital factors that can enhance firm performance.