Study on profit allocation in a collaborative third-party logistics service supply chain

Author(s):  
Xiaoli Liu ◽  
Chunxiang Guo
Author(s):  
Mengying Zhang ◽  
Jin Qin

In this paper, the authors study the capacity decision problem in an express delivery supply chain consisting of an online retailer and an express delivery provider where products sold by the online retailer are delivered by the express delivery provider to end customers. Unlike the case of the traditional manufacturer-retailer channels, the delivery capacity is a kind of “service product” that cannot be inventoried. To avoid the risk of unprofitable capacity, the delivery provider tends to build a limited delivery capacity which is smaller than the system-wide optimal capacity. To solve such a problem, the authors investigate the capacity coordination issue in this service supply chain using option contracts. By allowing the online retailer to reserve the capacity in advance, the delivery provider could rent a part of capacity which surpasses its self-owned capacity from a third party logistics. It is demonstrated that, compared with the benchmark based on a newsvendor model, option contracts can coordinate the delivery service supply chain. The authors also figure out the feasible option contracts that improve member's expected profit and show the degree of improvement that could be achieved.


Author(s):  
Pier Paolo Carrus ◽  
Roberta Pinna

Logistics Service Providers (3PL) have become important players in supply chain management. In a highly competitive context characterized by “time compression”, a successful strategy depends increasingly on the performance of Logistics Service Providers as they play a key integrative role linking different supply chain elements more effectively. However, the role of the information technology capability of these 3PL has not drawn much attention. The research question is: can IT be viewed as a fundamental supply chain management coordination mechanism? If so, does IT capability of third party logistics providers to improve performance in the supply chain and become a bigger factor in a strategic buyer-3PL relationship? By drawing on earlier research on the supply chain management coordination mechanism, the IT capability of third party logistics providers, a case study is conducted.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sharfuddin Ahmed Khan ◽  
Shahed Alkhatib ◽  
Zaina Ammar ◽  
Md. Abdul Moktadir ◽  
Anil Kumar

PurposeOutsourcings always affect crucial supply chain functions concerning flexibility and cost. During the decision to outsource and consider third-party logistics service provider selection, decision-makers need to pay more attention to certain critical outsourcing factors such as coordination, integration and cooperation as these key factors are essential to improve overall supply chain performance. The main purpose of this work is to identify the inter-relations among outsourcing decision factors to highlight the most important and influential factors that should be considered and carefully thought through when making outsourcing sustainable decisions.Design/methodology/approachA two-phased methodology has been used in this study. In the first phase, outsourcing decision factors are identified from existing literature and validated by decision-makers from industry and academia. To understand the influential strength and build a sustainable model, the decision-making trial and evaluation laboratory method is used. A courier company in the UAE is considered for implementation.FindingsAll identified and validated factors are segregated into two categories (cause and effect). The result shows that the most influential factors are developing strategic alliances, uncertainty and risk mitigation and deficiency of internal resources for a service.Practical implicationsThere are several insights for industry managers and practitioners. The results of the study may help practitioners and logistics managers to make the logistics service sustainable and more efficient for businesses.Originality/valueThis study focusses on a courier company to understand the interdependencies among outsourcing decision factors; this is unique in this field of literature.


Author(s):  
Thierry Sauvage

Our work discusses the results of a survey among French logistics service providers. In a highly competitive context characterized by “time compression”, technological effort becomes a key variable and a means of differentiation between third‐party logistics providers. The success of logistics outsourcing relationships is entrenched in the third‐party's technological ability to improve the supply chain reactivity.


2003 ◽  
Vol 14 (2) ◽  
pp. 93-107 ◽  
Author(s):  
Yemisi A. Bolumole

The shift from traditional and functional third‐party logistics to comprehensive supply‐chain relationships has significant implications for the role of third‐party logistics service providers (3pls). Extending previous research in which four factors were found to influence 3pls' supply chain function, this paper contains an assessment of the varying role(s) 3pls can play in the supply chain. The factors include: the strategic orientation of the outsourcing organization; its perception of 3pls' roles within the logistics strategy; the nature of the resultant client‐3pl relationship; and, the extent to which logistics is outsourced. The supply chain impact of these factors are evaluated based on the findings from case study research. Each different 3pl role (conceptual and empirical) is examined and implications for practical implementation are provided.


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