State of third party logistics providers in China

2014 ◽  
Vol 114 (9) ◽  
pp. 1322-1343 ◽  
Author(s):  
Albert Wee Kwan Tan ◽  
Zhao Yifei ◽  
Dali Zhang ◽  
Olli-Pekka Hilmola
Keyword(s):  
Success Factors ◽  
Southern China ◽  
Cost Effective ◽  
Developed Countries ◽  
Policy Implications ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Industry ◽  
Content Type ◽  
Global Trends

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.

Impact of external integration capabilities of third-party logistics providers on their financial performance

2016 ◽  
Vol 27 (2) ◽  
pp. 263-283 ◽  
Author(s):  
Chiung-Lin Liu ◽  
Pei-Yu Lai
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Third Party ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Logistics Industry ◽  
Content Type ◽  
Comprehensive Plans

Purpose – Outsourcing by corporations is increasing the demand for complex services (such as customization) from third-party logistics providers (3PLs). Effective integration between 3PLs and their customers, known as the external integration of 3PLs, not only allows 3PLs to respond rapidly to shippers’ needs but also to increase customer satisfaction and the effective allocation of resources while increasing operational efficiency (such as by proposing comprehensive plans for future logistics services to meet shippers’ demands). The purpose of this paper is to investigate the causal relationships among the external integration capabilities, cost advantages, and the financial performance of 3PLs. Design/methodology/approach – A survey of 3PLs in Taiwan and China was performed. The research model was tested using a structural equation modeling technique along with the partial least square (PLS-SEM/PLS) approach. Findings – The results herein demonstrated a positive relationship between 3PLs’ external integration capabilities and resource efficiency. The results also suggested that cost competitiveness positively affected the financial performance of 3PLs. Although the external integration capabilities of 3PLs were not found to directly affect their financial performance, the results in this study indicated that external integration capabilities enable a firm to improve financial performance by capturing cost advantages. Originality/value – This study provides useful information about the effects of external integration capabilities on the financial performance of 3PLs in a bi-regional context. The sample in this study was drawn from the 3PL industry in Taiwan and China, enabling a comparative analysis of these two countries of similar cultural backgrounds but different degrees of development of their logistics industry and different related demands.

Studying the sustainability of third party logistics growth using system dynamics

2019 ◽  
Vol 14 (4) ◽  
pp. 872-895 ◽  
Author(s):  
Balan Sundarakani ◽  
Yin Sian Lai ◽  
Mark Goh ◽  
Robert de Souza
Keyword(s):  
System Dynamics ◽  
Service Providers ◽  
Growth Dynamics ◽  
Third Party ◽  
Third Party Logistics ◽  
Industrial Growth ◽  
Study Region ◽  
Logistics Industry ◽  
Content Type ◽  
Sustainable Logistics

Purpose In this Industry 4.0 era, third-party logistics (3PL) industries face huge cost pressure to deliver their service. With increase in competition among the players, constant mergers and acquisitions (M&A) have been taking place to sustain competitive advantage. Therefore, this study aims to investigate the growth dynamics among the 3PL service providers. Design/methodology/approach In this research, the system dynamics methodology was applied to the study of the growth of 3PL industry in Singapore. A population growth model incorporating the predator–prey interaction is developed to account for growth through M&As among 3PLs and their interaction phenomenon are modeled through modified Lotka–Volterra method. The two-species system model consisting of small and medium logistics service providers (SMLSPs as the prey) and the lead logistics providers (LLPs as the predator) are gauged according to the firm size. Findings Results from the baseline model indicates that Singapore’s logistics industry looks very optimistic for SMLSPs for another 6 years from 2018, while the LLP population will achieve a peak at about 12 years from 2018. Further sensitivity analysis through macroeconomic and microeconomic changes reveals increase in trend of M&As. By varying competitive pressures between firms, results indicate that the LLP population experiences a decreasing rate of increasing SMLSP population falls. Research limitations/implications The research provides guidance for logistics and supply chain managers to better understand the critical factors that impact and determine competitive dynamics. The paper further recommends managers to build sustainable logistics strategies to retain competitive advantages. Originality/value The research contributes to both economic and social dimensions of logistics sustainability of how resilient the industries are during uncertain conditions. Some of the limitations of this research include the geographic coverage of the study region and other methodological aspects. The research value thus helps policymakers for developing strategic policies for sustainable industrial growth.

Analysing the critical success factors and the risks associated with third-party logistics in the food supply chain: a case of coffee industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saket Shanker ◽  
Hritika Sharma ◽  
Akhilesh Barve
Keyword(s):  
Supply Chain ◽  
Critical Success Factors ◽  
Success Factors ◽  
Fuzzy Topsis ◽  
Third Party ◽  
Future Research ◽  
Third Party Logistics ◽  
Content Type ◽  
Critical Success ◽  
The Impact

PurposeThe purpose of this study is to analyse various risks associated with third-party logistics (3PL) in the coffee supply chain and to present a framework that computes the influence of these risks on the critical success factors of the coffee supply chain.Design/methodology/approachThe risks have been identified through a comprehensive literature review and validation by industry experts. The paper utilises an interpretive structural modelling (ISM) methodology for developing a hierarchical relationship among the CSFs. Furthermore, fuzzy MICMAC analysis is carried out to categorise these CSFs based on their driving power and dependence value. The fuzzy technique for order preferences by the similarity of an ideal solution (fuzzy-TOPSIS) approach has been applied to prioritise the risks associated with 3PL based on their ability to influence the CSFs of the coffee SC. Furthermore, we performed a sensitivity analysis to analyse the stability of the results obtained in this study.FindingsThis study illustrates ten risks associated with 3PL and five CSFs in the coffee supply chain. The analysis revealed that coffee enterprises need to develop a balanced pricing strategy to ensure a sustainable competitive advantage, whereas the lack of direct customer communication is the most dominant 3PL risk affecting the CSFs.Practical implicationsThis research provides coffee enterprises with a generalised framework with set parameters that can be used to attain a successful coffee supply chain in any developing nation.Originality/valueThe study contributes to the literature by being the first kind of study, which has used fuzzy ISM-MICMAC to analyse the CSFs of the coffee supply chain and fuzzy-TOPSIS for analysing the impact of various risks associated with the 3PL in the coffee supply chain. Thus, this work can be considered a benchmark for future research and advancement in the coffee business field.

scholarly journals Analysis of the Optimal Application of Blockchain-Based Smart Lockers in the Logistics Industry Based on FFD-SAGA and Grey Decision-Making

Symmetry ◽  
2021 ◽  
Vol 13 (2) ◽  
pp. 329
Author(s):  
Shen-Tsu Wang ◽  
Meng-Hua Li ◽  
Chun-Chi Lien
Keyword(s):  
Web Application ◽  
Success Factors ◽  
Service Providers ◽  
Cost Effective ◽  
Application Programming Interface ◽  
Fractional Factorial ◽  
Office Workers ◽  
Logistics Industry ◽  
Blockchain Technology ◽  
Multiple Attribute

Blockchain technology has been applied to logistics tracking, but it is not cost-effective. The development of smart lockers has solved the problem of repeated distribution to improve logistics efficiency, thereby becoming a solution with convenience and privacy compared to the in-store purchase and pickup alternative. This study prioritized the key factors of smart lockers using a simulated annealing–genetic algorithm by fractional factorial design (FFD-SAGA) and grey relational analysis, and investigated the main users of smart lockers by grey multiple attribute decision analysis. The results show that the Web application programming interface (API) concatenation and money flow provider are the key success factors of smart lockers, and office workers are the main users of the lockers. Hence, how to better meet the needs of office workers will be an issue of concern for service providers.

Integrated quality environmental management implementation in food processing SMEs

2019 ◽  
Vol 31 (5) ◽  
pp. 740-757 ◽  
Author(s):  
Syed Ali Raza Shah ◽  
Khairur Rijal Jamaludin ◽  
Hayati Habibah Abdul Talib ◽  
Sha’ri Mohd Yusof
Keyword(s):  
Environmental Management ◽  
Food Processing ◽  
Success Factors ◽  
Process Management ◽  
Empirical Studies ◽  
Sampling Technique ◽  
Developed Countries ◽  
Operational Performance ◽  
Snowball Sampling ◽  
Content Type

Purpose The purpose of this paper is to identify the critical success factors (CSFs) of integrated quality environmental management (IQEM) and analyze their impact on operational performance (OP) and environmental performance (EP) in food processing Small and medium-sized enterprises (SMEs) in Pakistan. Design/methodology/approach The study is based on collecting data using a survey questionnaire through snowball sampling technique. A total of 302 food processing SMEs operating in Punjab, Pakistan, responded to the survey. SPSS version-23 and SmartPLS-3 were used for data analysis. Findings The literature review identified leadership (LS), employee management (EM), strategic planning (SP), information management (IM), process management (PM), supplier management (SM) and customer focus (CF) as CSFs of IQEM. The results of this study found a significant relationship of all identified CSFs with operational performance in food processing SMEs whereas EM, IM, PM and SM were insignificant with the EP in the food processing SMEs. Research limitations/implications Although this study has collected data from one province, the Punjab province, it still relevant in identifying the CSFs for IQEM implementation within food processing SMEs to improve performance. Originality/value Despite the wide spread of integrated systems practices in the developed countries, little attention has been placed to implement and assess the IQEM initiatives by organizations in the developing countries. Thus, this study identified CSFs of IQEM based on empirical studies and analyzed their impact on OP and EP of food processing SMEs.

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