Selection process in logistics outsourcing – a view from third party logistics provider

2011 ◽  
Vol 22 (3) ◽  
pp. 308-324 ◽  
Author(s):  
Yee Ming Chen ◽  
Meng-Jong Goan ◽  
Pei-Ni Huang
Keyword(s):  
Selection Process ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Outsourcing

scholarly journals Benchmarking criteria for evaluating third-party logistics providers in South Africa

2017 ◽  
Vol 11 ◽  
Author(s):  
Claudia Karrapan ◽  
Mndeni Sishange ◽  
Elana Swanepoel ◽  
Peter J. Kilbourn
Keyword(s):  
South Africa ◽  
Selection Criteria ◽  
Selection Process ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Outsourcing ◽  
Ranking Criteria ◽  
The Relationship ◽  
Ranking Index ◽  
Selection Of

Background: In South Africa, deemed the ‘gateway to Africa’, there is limited evidence of the existence of a survey ranking third-party logistics providers (3PLs). This lack of comparative information of the major 3PLs based on key outsourcing and ranking criteria complicates the selection process for companies that intend to contract 3PLs.Objective: The purpose of this article was to determine the critical selection and ranking criteria for the creation of an index to evaluate 3PLs in South Africa for developing a 3PL benchmarking index.Method: Survey data were collected from 103 of the Top 500 Companies in Africa that use 3PLs and operate within the sectors that mostly outsource logistics services in South Africa. A factor analysis method was employed.Results: Three factors for 3PLs selection converged: service quality, information management and compliance, and collaboration. The top three ranked categories for 3PLs selection are cost and price structure, service delivery and the relationship with the 3PL provider. Most respondents (90%) confirmed a need for a 3PLs index in South Africa.Conclusion: The results help managers with the strategic selection of 3PLs as these critical logistics outsourcing selection criteria can be used to evaluate and rank 3PLs prior to contracting. Based on the selection criteria for logistics outsourcing identified and ranked in this article, a ranking index for 3PLs in South Africa can be developed.

Does the Outsourcing of Logistics Services Keep its Promise of Increased Efficiency?

2013 ◽  
pp. 162-184 ◽  
Author(s):  
Aliona Grigorenco ◽  
Philippos Papadopoulos ◽  
Konstantinos Rotsios
Keyword(s):  
Performance Measures ◽  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Outsourcing ◽  
Logistics Service Providers ◽  
Logistics Services ◽  
Business Functions ◽  
And Performance ◽  
Outsourcing Logistics

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.

scholarly journals Logisticki provajderi

2003 ◽  
Vol 44 (156) ◽  
pp. 113-122
Author(s):  
Slobodan Acimovic
Keyword(s):  
Supply Chain ◽  
Critical Review ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Outsourcing ◽  
Business Operations ◽  
The World ◽  
Fourth Party Logistics ◽  
Limited Scope

The importance and the position of mediators in the logistic business operations are generally determined through identifying logistics as a set of important business activities. Accordingly, this paper is designed so that the general characteristics of the logistics providers in the Western economies are presented in its first part, while the second part contains a short critical review of the condition of the logistics outsourcing market in our country. The text essentially refers to emphasizing great differences in both the general logistic knowledge and in the specific characteristics of the logistic mediation between the Western markets and ours. So far two kinds of mediation have been identified in the world: 1) Third party logistics (3PL firms) - partial, i.e. incomplete logistics mediators and 2) Fourth party logistics (4PL firms) - complete logistics mediators basing their activity on the full supply chain. In our country we succeeded in identifying only transport firms and/or shipping agencies as the logistics mediators with a rather limited scope of activity; and as their activity's name implies, they are performing only one or two logistics activities.

The relationship between technology and logistics third‐party providers

2003 ◽  
Vol 33 (3) ◽  
pp. 236-253 ◽  
Author(s):  
Thierry Sauvage
Keyword(s):  
Supply Chain ◽  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Outsourcing ◽  
Time Compression ◽  
Logistics Service ◽  
The Third ◽  
Logistics Service Providers ◽  
The Relationship

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.

scholarly journals IDENTIFICATION OF CRITERIA FOR THIRD PARTY LOGISTICS SUPPLIERS (3PL) IN SUPPLY CHAIN MANAGEMENT (SCM) IN INDIAN MANUFACTURING INDUSTRIES

2021 ◽  
Vol 13 (2) ◽  
Author(s):  
Swapnil Sawant ◽  
Avinash Sarode
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Manufacturing Industry ◽  
Service Providers ◽  
Selection Process ◽  
Manufacturing Industries ◽  
Third Party ◽  
Third Party Logistics ◽  
Chain Management ◽  
Selection Of

The Indian manufacturing industry is growing rapidly, and supply chain management (SCM) plays the most important role in the industry. In SCM, customer satisfaction in terms of quantity, quality and on time delivery is the most important critical factor. To satisfy this requirement, the best third-party logistics (3PL) service provider is required.  Therefore, the selection of the best third-party logistics provider is one of the basic requirements in SCM. Logistics services are the backbone of an economy, providing the efficient, cost effective flow of goods and services on which other commercial sectors depend. The logistics companies work as the outsourced or third-party service providers and support the organization's logistics functions. In this study, we identified some important criteria for 3PL implementation in SCM in Indian manufacturing industries.  With the help of this study, supply chain managers from small to medium sized manufacturing industries can simplify the selection process for 3PL vendors. This study will help in the selection of the best vendor from such a competitive group and provide justification for the selection. 

scholarly journals Priority Types of the Enterprise Logistic Activities for Outsourcing

2020 ◽  
Vol 24 (1) ◽  
pp. 189-193
Author(s):  
K. Sokoliuk ◽  
◽  
A. Lyashenko ◽  
Keyword(s):  
Point Of View ◽  
Third Party ◽  
Mixed System ◽  
Third Party Logistics ◽  
Manufacturing Companies ◽  
Statistical Research ◽  
Logistics Outsourcing ◽  
Global Trends ◽  
Management Optimization ◽  
Freight Forwarding

Annotation. Introduction. The article examines the services of logistic outsourcing from the point of view of Ukrainian manufacturing companies, analyzes the results of the survey, compares them with global trends. It was determined that Ukrainian companies use logistic outsourcing less often than companies in other regions of the world. Also, the most often outsourced fields were identified. Purpose. Analysis of logistics outsourcing services from the viewpoint of Ukrainian manufacturing companies and comparison of survey results based on the survey with global trends. Results. It was found that from the list of enterprise groups classification (micro, small, medium, large) all categories use the services of freight forwarding companies. The following types of logistic processes are most often outsourced: transportation, lease and maintenance of equipment, warehousing, logistic chain optimization. It was found that among other countries in the study of third-party logistics, Ukraine occupies the lowest position in the usage of outsourcing services in logistics. The reasons for outsourcing logistic processes in logistics are significant: lack of own resources and capacity, cost reduction. The relationship between causes and logistic processes has shown that in order to reduce logistic costs in the enterprise it is necessary to outsource transportation. Conclusions. Statistical research has shown a small relationship between the areas of logistic outsourcing and the main causes of outsourcing of logistic activities. Therefore, it is not appropriate to say that some logistical measures should be outsourced and others should not. The mixed system, which combines the usage of own and third-party production facilities, is the most suitable for most Ukrainian manufacturing companies Keywords: logistics, outsourcing, third-party logistics, transport, warehousing, supply chain management, optimization, respondent, survey.

scholarly journals CHALLENGES OF IMPORT LOGISTICS OUTSOURCING BY MANUFACTURING FIRMS IN NAIROBI COUNTY

2017 ◽  
Vol 1 (1) ◽  
pp. 86-106
Author(s):  
Anne Wanjiru Njoroge ◽  
Mr. Onserio Nyamwange
Keyword(s):  
Manufacturing Industry ◽  
Total Population ◽  
Manufacturing Firms ◽  
Third Party ◽  
Sample Survey ◽  
Primary Data ◽  
Third Party Logistics ◽  
Manufacturing Companies ◽  
Logistics Outsourcing ◽  
Business Functions

Purpose: The purpose of this study was to investigate challenges of import logistics outsourcing by manufacturing firms in Nairobi CountyMethodology: The research design of this study was a sample survey of the importers in the manufacturing industry as per the Kenya Association of Manufacturers. The total population of the companies in the manufacturing industry in Nairobi was 455 manufacturing firms. Primary data was collected via self-administered questionnaires with both open ended and closed questions that were designed to elicit specific responses for qualitative and quantitative analysis respectively. The data was analyzed by use of descriptive statistics.Results: The results indicated that the important reasons of outsourcing were satisfactory in explaining the decision by manufacturing companies to outsource. The reasons of outsourcing are a key determinant in deciding to outsource import logistics. The extent of challenges the importers face when importing services also determined the decision to outsource in the firms.Unique contribution to theory, practice and policy: The study recommends that the manufacturing firms should put more focus on core business functions and ensure reduction of overhead costs. They should take advantage of external expertise and experience and put measures to improve internal capabilities and expertise. The firms should reduce the total overall costs and where third party logistics providers provide a better service contract them. They should also emphasize on improved customer focus put measures to enable them compete effectively in the market.

scholarly journals Management guidelines for third-party logistics

2006 ◽  
Vol 17 (1) ◽  
pp. 31-51
Author(s):  
Michael Maloni
Keyword(s):  
Performance Measures ◽  
Success Factors ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Outsourcing ◽  
Management Guidelines ◽  
Reference Guide ◽  
Relationship Success ◽  
And Performance

There is a significant amount of useful yet fragmented research in third-party logistics (3PL). This article seeks to review, summarize, and structure this 3PL research to provide a reference guide for managers interested in exploring, building, or improving logistics outsourcing opportunities. Topics covered include reasons to outsource, functions to outsource, 3PL provider evaluation, implementation and relationship success factors, contracts, and performance measures.

Contracting for Logistics Services

2013 ◽  
pp. 39-51
Author(s):  
Kostas Selviaridis
Keyword(s):  
Service Provider ◽  
Academic Research ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Outsourcing ◽  
Logistics Services ◽  
Provider Perspective ◽  
Recent Developments ◽  
Industry Practice

This chapter seeks to critically revisit existing third party logistics (3PL) purchasing literature with the aim of bridging the gap between academic research and industry practice regarding logistics outsourcing. This is achieved by focusing on hitherto under-emphasized issues (in the academic literature) relating to the role of the service provider, as opposed to that of the buyer, in 3PL exchange design and management, and the dynamics of the outsourcing process. Drawing on recent developments and practices in the 3PL industry and two in-depth case studies of logistics outsourcing, the study suggests that, under increasing complexity and uncertainty levels, the service provider in interaction with the buying firm significantly influences service definition, design, and evaluation throughout the outsourcing process. The exchanged service is not determined from the outset of the outsourcing process but it is (re)shaped in an iterative and ongoing fashion. Based on such findings, the chapter calls for increased emphasis on a dynamic and inter-organizational (buyer-service provider) perspective into the study of logistics outsourcing processes.

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