Party Logistics Industry Research Articles

Does service quality influence operational and financial performance of third party logistics service providers? A mixed multi criteria decision making -text mining-based investigation

Since its inception, the third party logistics (3PL) industry has remained an area of interest for academicians and practitioners. The existing literature mostly focuses on single multi criteria decision making (MCDM) method-based holistic performance evaluations of 3PL service providers, whereas distinct operational and financial performance measurements have not received enough attention. Several real-life examples of organizations, such as Hub Group and DSV, indicate that the reliance on financial performance improvement solely does not ensure better operational performance and integrated performance, and vice versa. Additionally, there is an absence of works that focus on designing an integrated MCDM methodology that applies multiple MCDM methods to increase the robustness of the methodology and consider distinct operational, financial, and integrated performance measurements of the 3PL service providers. Additionally, the application of emerging ratio analysis-based MCDM methods such as multi objective optimization based on ratio analysis (MOORA) and complex proportional assessment (COPRA) for performance evaluation has been ignored. Furthermore, the assessment of the service quality of 3PL service providers through their customers’ feedback and the association of this service quality with the abovementioned performance measures have not received enough attention. This motivates us to design a criteria importance through intercriteria correlation (CRITIC) weighting-based integrated MOORA-COPRA MCDM methodology for the performance evaluation of 3PL service providers. We apply our proposed methodology to evaluate the performance of 21 leading 3PL service providers in North America. Additionally, we incorporate text mining methods such as sentiment analysis and topic modeling to analyze the effect of these service providers’ service quality captured through their customers’ reviews on distinct operational, financial, and integrated performance. The insights obtained from the study indicate that service quality (as captured from the consumer reviews) has a positive association with the operational and financial performance of 3PL service providers.

A framework for measuring customer loyalty for 3PL industry: a case of evolving market

PurposeThis research aims to propose a framework for measuring customer loyalty for third party logistics (3PL) industry by exploring the attributes that are more attractive to customers and ascertain the mechanisms for increasing customer loyalty in 3PL industry.Design/methodology/approachData were collected from one hundred and thirty-three (133) respondents who were employees of different industries that outsource 3PL services. The partial least square structural equation modeling (PLS–SEM) was deployed for analysis.FindingsThe results showed that service quality has a significant positive impact on customer orientation, customer satisfaction and relationship quality. On the other hand, customer orientation has been observed to positively impact customer satisfaction but an insignificant impact on customer loyalty and relationship quality. Customer satisfaction has a significant positive impact on relationship quality but an insignificant impact on customer loyalty. Also, relationship quality has a significant positive impact on customer loyalty.Practical implicationsThe results recommend that 3PL companies' managers focus more on developing quality relationships with their customers, delivering exemplary service quality and offering customer orientation.Originality/valueThis study will help the stakeholders gain much more understanding and insights on how competitive advantage can be achieved and, consequently, help 3PL become the market leaders.

To Explore the Relationship of Factors in the Third Party Logistics Industry using DEMATEL

The 3PL market is a growing trend around the world, but it is already grown in the UAE, especially in Dubai, where it is having very high market and is growing fast in Abu Dhabi like Dubai. The DEMATEL approach is used to develop an important relationship between dimension and criteria. It uses the matrix and related theories of math to calculate the cause and effect of the degree on each variable. This approach is commonly accustomed to solve various sorts of complex studies which will effectively explain the complex structure and supply the reasonable choices of problem-solving. The primary motivation behind this paper is to break down the components impacting customers' practice in third-party logistics industry by applying DEMATEL strategy. Fourteen factors namely Responsiveness, Reliability of the 3PL provider, Quality of operation, Cost, Flexibility, Financial stability, Delivery time, Ability to meet customer needs, Document accuracy, Storage facilities, Good communication, Attitude towards customers, Technical competence and Reputation are chosen from many different studies. In this research, six experts were involved with a request to evaluate the degree of direct impact between two variables by means of a pair comparison. The results showed the best three significant factors influencing delivery time, quality of operation and cost. Besides, cause and effect connection outlines are additionally built to increase the understanding of the intuitive connection between those criteria. It is discovered that reputation has the most effect on the other factors and cost gets the most effect from different components. At last, this article gives realistic guidelines for the 3PL market in Abu Dhabi, UAE.

Quality Management as Driver of Vertical Integration in Service Chain: A Study of 3rd Party Logistics Industry

Quality Management as Driver of Vertical Integration in Service Chain: A Study of 3rd Party Logistics Industry

Taxonomies of trust in supply chain risk management in the South African third party logistics industry

Orientation: Many organisations find it difficult to implement supply chain risk management (SCRM) processes successfully without the existence of trust in buyer–supplier relationships. Research purpose: The purpose of this study was to explore the taxonomies of trust in SCRM in a buyer–supplier relationship within the South African third party logistics (3PL) industry. Motivation for the study: The advantages and disadvantages of trust in buyer–supplier relationships have been researched extensively. However, within the context of South Africa, there is a dearth of research on the main components of trust in buyer–supplier relationships when implementing SCRM processes. Research design, approach and method: A generic qualitative research method was used to gather data. A total of 21 purposively selected senior managers were interviewed from buyer and supplier organisations in South Africa with headquarters located in Gauteng province participated in semi-structured interviews. Within this sample, 10 buyer and 10 supplier organisations were interviewed. Main findings: The findings of this study indicate that value similarity improves SCRM processes by relationship building, transparency, information sharing and similar supply chain objectives. Past performance improves SCRM processes by increasing the business knowledge of supply chain partners, confidence in ability and goal congruity. Risk perceptions improve SCRM processes by supply chain partner alignment and similar intentions. Social trust improves SCRM processes by increasing the responsiveness, agility and communication of supply chain partners. Practical/managerial implications: This study provides practitioners in the 3PL industry with insights into the role of having trust in their buyer–supplier relationships, as trust acts as a catalyst and enabler when implementing effective SCRM processes. Contribution/value-add: The theoretical contribution of this study is the use and adoption of the Trust Confidence and Cooperation Model by Earle, Siegrist and Gutscher (2010), to create a taxonomy of trust within a SCRM and South African 3PL context.

Lean Adoption in Third Party Logistics Industry to Achieve Efficient Logistics Activities

Purpose: This study focuses on lean implementation evaluation in Third Party Logistics (TPL) industry by using the lean principles measurement from...

A Study on the Core Competence of the Third Party Logistics Enterprises -- Taking Rongqing Logistics as an Example

With the strengthening of global economic integration as well as the rapid development and the improvement of maturity of the third party logistics industry, the strong competitive pressure of the international and domestic market puts forward higher requirements for the third party logistics. the key to win the competition lies in the cultivation and promotion of core competence. The paper aims to explore the problem of core competences. Firstly, the concept of core competence is put forward; and to analyze the influencing factors. Secondly, taking Rongqing logistics company as an example to explore the problem in the process of building core competence of the third party logistics enterprise. Finally, to put forward measures, strategies and suggestions on building the core competitiveness of the third party logistics enterprise.

Improving the Management and Operational Success of the Third Party Logistics Industry in Taiwan: Application of Fuzzy Quality Function Deployment

The main purpose of this paper is to illustrate the application of the fuzzy quality function deployment (FQFD) approach to identify the technical requirements for improving the management and operational success of a third-party logistics (3PL) industry. First, the questions of what the key success factor (KSF) needs may be and how the technical requirements should be made are emphasized on a house of quality matrices. Then, to effectively grasp the inherent fuzziness of human judgments and preferences, the systematic steps using FQFD are proposed. Subsequently, an empirical study of 3PL industry in Taiwan is utilized to demonstrate the systematic steps. This study's results show that the five major technical requirements for improving the management and operational success requirements of 3PL industry are: (1) professional capability of service personnel, (2) complete information system, (3) good customer communication network, (4) superb technology and management skills, and (5) operational process optimization capability. In addition, this study also provides suggestions concerning the top five technical requirements for improving management and operational success in meeting KSF needs. These can be considered to be the key points for the operation and management planning of companies in the 3PL industry.

NIS/RIS 관점에서의 3PL산업 발전방향

NIS/RIS 관점에서의 3PL산업 발전방향

The current situation of Chinese Fourth Party Logistics Industry and Korean Fourth Party Logistics Companies' market entry strategy

The current situation of Chinese Fourth Party Logistics Industry and Korean Fourth Party Logistics Companies' market entry strategy

The European Third Party Logistics Industry in 2011: The Provider CEO Perspective

This paper discusses the results of a 2011 survey of the CEOs of ten large 3PLs serving Europe marketplace, and focuses on the state of the European marketplace for 3PL services at that time. It addresses a variety of issues including the key marketplace dynamics in the European 3PL industry, the industry’s response to the earthquakes/tsunami, the industry’s commitment to environmental sustainability, its use of social media tools, and a wide range of other aspects of the industry’s current status and future prospects in the region.

The European Third Party Logistics Industry in 2009: the Provider Ceo Perspective

This paper discussed the results of a 2009 survey of the CEOs of 10 of the largest 3PL service providers operating in the European marketplace. Collectively these companies generated more than 25 billion Euros in European 3PL revenues during 2008. However, more than half of the respondent companies failed to meet their revenue projections during 2008. As a result of the global recession and its impact on the 3PL industry, the CEOs of these companies were not optimistic about either company or European 3PL industry prospects for the next year.

The North American Third Party Logistics Industry in 2010: the Provider Ceo Perspective

This paper discusses the results of a 2010 survey of the CEOs of 16 of the largest 3PL service providers operating in the North American marketplace. Collectively these companies generated more than $21 billion in North American 3PL revenues during 2009. For the second year in a row, more than half of the respondent companies failed to meet their revenue projections during 2009. Nevertheless, 13 of them were at least marginally profitable for the year. Reflecting optimism about the recovery, 14 of the 16 companies reported introducing new services in the past year.

The year 2007 survey

PurposeThis study attempts to provide insight into the dynamics of the third party logistics (3PL) industry in the Asia‐Pacific (APAC) region.Design/methodology/approachThe data reported in this paper were generated through a survey of the chief executive officer (CEOs) of ten of the largest 3PLs operating in the region.FindingsThose companies anticipate substantial regional revenue growth, with nearly one‐quarter of that growth coming from acquisitions. Private equity (PE) investors have been active in the region, and the CEOs are divided as to whether that is a positive or negative development. Price compression, market entrance of foreign 3PLs, and increased pressure to internationalize services were identified as the most important regional market dynamics. Continued growth of intra‐Asian business and possible expansion of transportation services were cited as the most important regional opportunities. A continuing shortage of management talent, the region's regulatory structure, and inferior transportation services were cited as the most significant regional problems.Practical implicationsThe region's growth prospects will promote further investments by 3PLs and PE companies. Regional transportation problems will continue to trouble 3PLs, and they must develop strategies to address shifting manufacturing patterns. The regional “talent shortage” will continue, and while 3PLs have taken steps to improve recruiting, training, and retention, there is little short‐term relief in sight. Regional buyers of 3PL services are becoming more sophisticated, and will likely place even more pressure on prices. Continued cost‐cutting measures and growing customer selectivity are the most likely reactions of 3PLs to that pressure.Originality/valueThe paper provides insight into the current status and future prospects of the third‐party logistics industry in the APAC region.

Third Party Logistics Industry in India: Opportunities and Challenges

The third party logistics (3PL) industry is growing significantly all over the world. Globalization of almost all economies of world has resulted in an increase in the emphasis on core competency about movement of goods from one place to another. However, 3PL industry is in its infancy in India. It is led by few domestic and multinational firms. Previous studies have established widespread adoption of 3PL by corporate enterprises in the USA and European countries but very limited research studies have been carried out in India. This paper is an attempt to explore the perspective of 3PL in India. The focus of this research is on assessing importance of logistical services; reasons behind outsourcing logistical services; extent of outsourcing logistics services by corporate enterprises; and slow adoption of 3PL. The findings of this research reveal bright future of 3PL industry in India. Corporate enterprises have a positive attitude towards it but are using 3PL for the fulfillment of routine functions not for strategic objectives as depicted by trends in developed countries for core competency or superior market responsiveness unlike trends in developed countries. However, 3PL firms need to market their value addition capabilities for strategic advantages for rapid growth and development.

Executive Summaries of Articles

Executive Summaries of Articles

A study on the Development of Third Party Logistics Industry with BCG Matrix Analysis: Analysis of the Third Party Logistics Industry in the U.S.A.

A study on the Development of Third Party Logistics Industry with BCG Matrix Analysis: Analysis of the Third Party Logistics Industry in the U.S.A.

Adding value through outsourcing

PurposeThe aim of this research is to understand how customers perceive their logistics service providers in terms of achieving the claimed benefits of outsourcing. This paper is based on research focusing on the state of the 3PL (Third Party Logistics) industry in Australia.Design/methodology/approachA set of typical business outcomes to which logistics outsourcing is expected to contribute were identified. Customers were asked to rate the contribution of their principal 3PL to these performance indicators. We used competitive priorities of 3PLs, the services provided by them and technologies used by them as predictors and performed regression analysis for each of these.FindingsThe results indicate that customers of 3PLs place significant value on the services they provide, technologies they use and objectives that transcend just low cost. The implication of this final finding shows that customers see a focus on service based solutions as providing a set of benefits beyond mere cost control.Research limitations/implicationsThe main limitation of this paper is that it is confined to Australia. So, any extensions of the findings to other regions of the world should be done with caution.Practical implicationsThe practical implication of the study is that it provides support for the potential for an effective set of arrangements with 3PLs to help organizations to move out of the world of pure cost based competition, and into one where they could compete on multiple dimensions.Originality/valueThis study provides evidence from customers of logistics service providers indicating that 3PLs provide them with a means for competing through greater flexibility, at the same time as enabling better‐cost management. In this sense, customers see 3PLs as providing them with a potential pathway to more innovative business models.

The Year 2006 Survey: CEO Perspectives on the Current Status and Future Prospects of the European Third Party Logistics Industry

During 2006, a survey was conducted of the CEOs of 11 of the largest third-party logistics companies serving the European marketplace. This article documents their responses to questions concerning such topics as the industry’s dynamics, market opportunities, and problems. Attention is also given to a broad range of other topics of interest to the industry concerning such matters as the 2004 expansion of the membership of the European Union, the impact of mergers and acquisitions on the companies involved in the survey, and a variety of supplier-customer relationship issues. CEO estimates of future company and industry revenue growth rates are also highlighted. The implications of the findings to both users and providers of 3PL services are also examined.

The North American third party logistics industry in 2004: the provider CEO perspective

PurposeOur annual surveys seek to provide insight into important market dynamics, opportunities and problems in the North American third party logistics (3PL) industry, from the perspective of the chief executive officers (CEOs) of major logistics service companies. The information generated is not only useful to managers considering using such services, but also to provider CEOs to facilitate industry benchmarking.Design/methodology/approachFor the past decade, that insight has been sought by conducting annual surveys of the CEOs of many of the largest 3PL companies serving North America.FindingsThe CEOs projected substantial revenue growth in the North American 3PL marketplace over the next three years. Their companies are becoming increasingly customer selective, and aggressively selling along customer supply chains. They are increasingly focusing attention on the possible large‐scale adoption of RFID technology in the industry, and seeking ways to overcome industry pricing pressures.Research limitations/implicationsThis survey focused on the largest 3PL companies operating in North America. However, many small‐medium size companies now participate in that market, and little work has been done to document developments in that sector of the industry. Further, little research has been conducted concerning the provision and use of 3PL services in other geographies.Practical implicationsAs previously noted, the findings not only give insight into the industry for those considering the use of 3PL services, but also give provider CEO a means of benchmarking their companies against industry averages.Originality/valueData generated in this survey provide a basis for comparison with that generated in our previous annual surveys, and an understanding of current 3PL market conditions.