Benefits, Risks, Selection Criteria and Success Factors for Third-Party Logistics Services

2008 ◽  
Vol 10 (4) ◽  
pp. 380-392 ◽  
Author(s):  
Konstantinos Selviaridis ◽  
Martin Spring ◽  
Vassilios Profillidis ◽  
George Botzoris
1998 ◽  
Vol 1 (3) ◽  
pp. 167-179 ◽  
Author(s):  
Melvyn J. Peters ◽  
Hugh L. Randall ◽  
Robert C. Lieb

Author(s):  
Aliona Grigorenco ◽  
Philippos Papadopoulos ◽  
Konstantinos Rotsios

The aim of this chapter is to evaluate the efficiency of third party logistics (3PL) and the importance of outsourcing logistics services from the client’s perspective. The research focuses on current practices related to the extent of use, predictive value outsourcing and performance measures system of Colgate-Palmolive Company in Greece. The study examines the efficiency of the logistics service providers, and its impact on the overall client performance, evaluated through interviews with the 3PL Coordinator, the Logistics Manager, and the Manufacturing Director. The key findings of the work are that logistics outsourcing takes responsibility for non-core business functions, brings reductions of stocks and costs as well as order-to-delivery lead-time, accelerates capital turnover and capitalizes on synergies to achieve efficiency. Overall, its contribution is evaluated by the client as satisfactory and of medium significance, with room for improvements.


2016 ◽  
Vol 116 (4) ◽  
pp. 690-722 ◽  
Author(s):  
Kannan Govindan ◽  
Roohollah Khodaverdi ◽  
Amin Vafadarnikjoo

Purpose – Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL providers has become a main approach for companies to offer better customer service, reduce costs, and gain competitive advantage. This paper identifies important criteria for 3PL provider selection and evaluation, and the purpose of this paper is to select 3PL providers from the viewpoint of firms which were already outsourcing their logistics services. Design/methodology/approach – This study utilized the grey decision-making trial and evaluation laboratory (DEMATEL) method to develop 3PL provider selection criteria. Because human judgments are vague and complicated to depict by accurate numerical values, the grey system theory is used to handle this problem. Findings – The findings revealed the structure and interrelationships between criteria and identified the main criteria for 3PL provider selection. The most important criteria for 3PL provider selection are on time delivery performance, technological capability, financial stability, human resource policies, service quality, and customer service, respectively. Practical implications – The paper’s results help managers of automotive industries, particularly in developing countries, to outsource logistics activities to 3PL providers effectively and to create a significant competitive advantage. Originality/value – The main contributions of this paper are twofold. First, this paper proposes an integrated grey DEMATEL method to consider interdependent relationships among the 3PL provider selection criteria. Second, this study is one of the first studies to consider 3PL provider selection in a developing country like Iran.


2011 ◽  
Vol 2 (4) ◽  
pp. 29-60 ◽  
Author(s):  
Omprakash K. Gupta ◽  
S. Samar Ali ◽  
Rameshwar Dubey

Third party logistics (3PL) has been gaining importance in most places in the world. In India the implementation of 3PL practices has made its beginning and it is emerging as one of the fastest growing sectors. It is still a relatively new concept and not well understood among industry or academic professionals in India. This paper examines the Indian 3PL Supply Chain Management and practices with respect to the key success factors and growth strategies. After identifying the critical success factors SERVQUAL is applied to reveal the gap between their achievement and expectation. Respondents to the survey are categorized based on their rating of the key growth strategies on the basis of AHP.


1996 ◽  
Vol 7 (2) ◽  
pp. 43-58 ◽  
Author(s):  
Theodore P. Stank ◽  
Patricia J. Daugherty ◽  
Alexander E. Ellinger

The impact of information exchange on suppliers' performance is investigated in the context of trade relationships formed between manufacturers and third party providers of international logistics services. A conceptual model that predicts the important linkages among information exchange, responsiveness and performance is introduced and tested. The research shows that information exchange positively affects customers' perceptions of third party logistics providers' performance; information exchange also positively affects logistics providers' service responsiveness; and logistics provider responsiveness affects customers' perceptions of the providers' performance. These linkages provide a fuller understanding of why and how information exchange influences manufacturers' perceptions of the performance of third party logistics providers. Logistics providers that used information obtained from trading partners to develop more responsive operations were viewed as better performers.


2014 ◽  
Vol 114 (9) ◽  
pp. 1322-1343 ◽  
Author(s):  
Albert Wee Kwan Tan ◽  
Zhao Yifei ◽  
Dali Zhang ◽  
Olli-Pekka Hilmola

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.


Author(s):  
Rohit Bhatnagar ◽  
Amrik S. Sohal ◽  
Robert Millen

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