Understanding the usage patterns, practices and decision process of third party logistics outsourcing in Bangladesh

2019 ◽  
Vol 12 (3) ◽  
pp. 329-354 ◽  
Author(s):  
Nasrin Akter ◽  
Prem Chhetri ◽  
Shams Rahman

Purpose Bangladesh is becoming one of the emerging destinations for global outsourcing. However, little is known about the usage patterns of third party logistics (3PL) outsourced services. The purpose of this paper is to examine the extent of 3PL usage, the organisational factors affecting 3PL usage, impacts of 3PL and the future trend of 3PL usage in Bangladesh. Design/methodology/approach A survey questionnaire is used to collect data against a number of items pertaining to the extent of 3PL use and its impact on performance. A total of 1,000 organizations were randomly selected from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) database. The survey resulted in 243 responses, out of which 150 organisations have adopted 3PL services. A chi-square test is conducted to assess statistical significance of the hypothesized relationships among the variables relating to 3PL decision-making process and a regression analysis is conducted to assess the strength of those variables to predict the impact of 3PL usage. Findings Overall, the results reveal that 3PL services are extensively adopted by businesses (63 per cent) in Bangladesh. Freight forwarding, order fulfilment and shipment consolidation are the top three most frequently outsourced 3PL services. However, the extent of 3PL use varies between manufacturing and service organisations. Results also suggest that logistics system performance is the key predictor of the overall satisfaction of 3PL users. Research limitations/implications The key limitation of this study is that both manufacturing and services firms are collectively analysed. Future research will separately investigate the outsourcing 3PL services requirements for two categories of firms. Characterisation of 3PL usage patterns and their drivers has practical significance and strategic implications for logistics practitioners and decision-makers who opt for global outsourcing. Originality/value The implementation in the context of Bangladesh to provide an evidence base to formulate business strategies for increasing the adoption of 3PL usage is novel.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saket Shanker ◽  
Hritika Sharma ◽  
Akhilesh Barve

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dilpreet Kaur Dhillon ◽  
Kuldip Kaur

PurposeThe present study is an intra-industry analysis, which aims to investigate whether the impact of COVID-19 on employment level, clientele rate, liquidity constraints and sustainability aspect of different food outlets is symmetric or asymmetric in nature.Design/methodology/approachWith the help of well-structured questionnaire, the study has surveyed 80 food outlets in total by interviewing the managers and owners of these outlets. Food outlets have been classified into four categories namely international, national, local and street food outlets. Econometric techniques like MANOVA and Garret ranking have been employed to fulfil the objective of the study.FindingsThe results depict that the impact of COVID-19 on employment level and liquidity constraints is significantly asymmetric amongst different groups of food outlets, even though the decline in extent of clientele is somewhat same for all groups. The survival aspect of outlets also witnesses clear-cut asymmetry in results as big outlets have greater potential to survive for longer if lockdown happens again when compared to street food outlets as their financial availability and stability differ.Research limitations/implicationsThe sample size of study is restricted, mainly due to lesser number of national franchise's food outlets available in Amritsar, though other categories of eateries were sufficient in number. Further, the study is restricted only to one district of Punjab state, whereas for future research, inter-district comparison can be done.Practical implicationsThe findings reveal that the street food outlets may gain by fostering its online functioning. Similarly national food outlets are encouraged to alter their business strategies to revive their sales against their competitors.Originality/valueThis study is one of the explorer studies to analyse the impact of COVID-19 by making an intra-industry comparison for the eatery industry – considering four different categories of eateries. The classification of eateries helps in analysing whether the employment level, clientele rate, liquidity constraints and survival perspective have been affected symmetrically for the whole eateries industry or does severity of being affected differ asymmetrically. The study makes a contribution by adding a new string of dimension to the existing load of literature in the domain of hospitality.


2016 ◽  
Vol 20 (1) ◽  
pp. 97-114 ◽  
Author(s):  
Yoon-Hwan Park ◽  
Yoon-Say Jeong

Purpose – The purpose of this paper is to analyze the process of enhancing logistics performances in Korean exporters’ utilizing “third-party logistics” (3PL) in area of delivery service to overseas buyers. Design/methodology/approach – A research model was designed on the mechanism of Korean exporters’ utilizing 3PL and the collaborative relationships (CR) between exporters and “logistics service providers” (LSPs) in supply chain management context. The mechanism means what triggers the Korean exporters to choose LSPs in overseas trade. Conclusions were drawn from survey data gathered from 146 exporters in Korea. Structural equation model with partial least square was employed to measure the statistical significance of the hypothesized model paths. Findings – This study provides evidence that exporters’ evaluation on the customization of LSPs’ service capacities, the reasonability of LSPs’ service fees and the information sharing are three important prerequisites to CR between exporters and LSPs. This study is focussed on exporters’ performance such as consistency of secure delivery (SD), exporters’ logistics cost savings (CS) and exporters’ satisfaction. The results show a strong support for this study, with positive and significant effects of CR on the consistency of SD, exporters’ logistics CS and exporters’ satisfaction. Practical implications – This study proves that exporters’ performance derived from the CR results in exporters’ loyalty to LSPs, which means LSPs’ performance. Originality/value – There are very few studies on utilization of 3PL related to delivery of export goods to overseas buyers and relevant exporters’ performance. However, this study has particularly explored the mechanism in the relation of exporters’ using 3PL and its performance.


2008 ◽  
Vol 3 (3) ◽  
pp. 320-334 ◽  
Author(s):  
José Cadima Ribeiro ◽  
José Freitas Santos

PurposeSmall and medium size enterprises (SMEs) located in particular geographical areas are producing and selling regional products to domestic and foreign markets. Most of the local activities are embedded in historical tradition and geographic, cultural and social specificity. This article aims to investigate the effect of local environment on the success of two Portuguese SMEs.Design/methodology/approachThe authors use case study methodology to understand whether local environment influences the nature of the competitive advantage of the small firms and their ability to gain access to resources that enable them to compete with the industrial low price substitutes produced by larger firms.FingingsThe key conclusion of the study is that the two firms analysed rely strongly on the specific characteristics of the local environment and on partnerships with local producers (raw materials or products) in order to achieve the economic scale that allows them to compete in the domestic and foreign markets.Originality/valueDue to the limitations of the present analysis concerning the way buyers affect small suppliers' ability to maintain core artisanal knowledge, future research should also examine how this influence works. For example, how firms learn from their network links and how belonging to a network might drive them to internationalisation, and the choice of countries made. In addition, future research should explore the impact of the region of origin concept on new business formation and internationalisation.


2014 ◽  
Vol 7 (1) ◽  
pp. 2-17 ◽  
Author(s):  
Sanjay Sharma ◽  
Aniket Ghosh Choudhury

Purpose – The purpose of this exploratory study is to highlight the stages in the relationship which eventually lead to an integrated logistics alliance. Design/methodology/approach – The stages involved in the evolutionary process have been explained with the help of concepts of mental models and knowledge-related asymmetries. The study has been justified by applying multiple case research design which involves examples of successful logistics alliances. Findings – The analysis using case study approach provides a detailed overview how third-party logistics providers develop successful relationships with different industry firms over a period of time which eventually lead to innovations benefiting both the partners. Research limitations/implications – In the paper, a qualitative case study methodology has been adopted which is limited in nature when compared to quantitative approach. Nevertheless, the multiple cases discussed in the paper involve organizations from diverse sectors thus providing a holistic perspective and adding value to the current strategic alliance literature. Practical implications – The complete understanding of the concepts discussed in this paper will help companies revisit their business strategies and identify areas of improvements in their current engagement practices with third-party logistics providers. Originality/value – Many a time, relationships fail to develop into an alliance and research related to the attributes causing these failures might be limited. In the past, though many papers have talked about strategic alliances between third-party logistics providers and customers, little has been discussed about how such relationships evolve into successful strategic alliances.


2016 ◽  
Vol 10 (2) ◽  
pp. 116-127 ◽  
Author(s):  
Neil James

Purpose – Currently there is no research that explores professionals’ perspectives in supporting carers of a person with an intellectual disability during their relatives admission to a specialist in-patient setting. The purpose of this paper is to report the findings from the second stage of a study that explored the experiences of family carers whose relative was admitted to a specialist National Health Service assessment and treatment unit (ATU) in Wales, UK (James, 2016). Design/methodology/approach – Aim: to obtain the views of professionals in relation to what they consider are the barriers and facilitators to addressing some of the experiences discussed by carers. Methods: nine professionals working in intellectual disability-specific services participated in four semi-structured interviews and one focus group (n=5) and the data were analysed using a descriptive thematic analysis process. Findings – Three major themes were developed to represent what professionals identified as a number of individual, organisational and practical facilitators and barriers to the provision of support to carers at this time. Professionals recognised the important role they have in developing relationships with carers during the admission. Key to this relationship is effective communication, collaboration, involvement and the need to be consistently open and honest. Research limitations/implications – The small sample size could be said to be a weakness and unrepresentative and practice of other professionals. However, what professionals reported had similarities to the findings from other related research. Importantly, the findings have a practical significance in that they can be used to raise awareness and be used to inform the development of future research and practice. The sample could also be criticised for not having representation from a wider range of professionals from across the multi-disciplinary team. However, a strength of the sample is that it did have representation from three different professional disciplines with different roles and responsibilities. Practical implications – Currently there is very limited research exploring the experiences of professionals in respect of supporting carers during the admission of a relative to a specialist in-patient setting. Professionals demonstrated an understanding of the impact that the additional needs and admission of their relative to an ATU could have on carers. Accordingly, they were able to recognise the important role that they, and other professionals, play in developing relationships as part of providing support to them during this time. Key to these relationships was effective communication and in particular the need to be consistently open and honest. Social implications – The findings from this study illustrate a gap between the rhetoric of policy, legislation and carer strategies, and practice of valuing and respecting the role that carers. Of particular concern is that some of the relationships that carers have had with professionals have threatened rather than positively endorsed and augmented their role and identity. These engagements with professionals therefore have had a profound effect on the way in which they have understood their value as a carer and their own sense of self. Significantly, the actions and behaviours of professionals play a key role in shaping carers views of themselves and their identity. Originality/value – Currently there is no research that has explored the views of professionals in respect of support and relationships with carers at this time. The synthesis of findings from stage one of this study with professionals’ perspectives of resulted in the identification of similarities and differences in experiences as well as facilitators and barriers to support provision. In so doing, it has given clear application of the studies findings to practice. This study therefore provides an original contribution to the understanding of this area of carer experience, from the perspectives of professionals and adds to the wider literature exploring the family carer experience.


2017 ◽  
Vol 13 (3) ◽  
pp. 359-380 ◽  
Author(s):  
Ashraf Khallaf ◽  
Mohamed Aboelhamd Omran ◽  
Taha Zakaria

Purpose The purpose of this paper is to identify potential reasons for inconsistent results of the economic value of information technology (IT) investments. Furthermore, the study aims to develop framework and propositions to explore future opportunities and directions for research that examine the returns on IT investments. Design/methodology/approach This study conducted a longitudinal analysis of the literature review concerning the impact of IT investments on firm performance to identify the reasons to the so-called “IT productivity paradox” and to explore future opportunities and directions for future research. Findings The study provides and discusses the reasons for the inconsistent results in the prior research that examines IT investments payoff and suggested a framework and propositions for future research. Results of prior studies should be interpreted in the context of research questions raised, data used, level of analysis, IT investment measures, firm performance measures, time horizon and industry characteristics. Practical implications IT managers and researchers should align IT investments with the environment in which a firm operates and competes and with firm’s business strategies as important determinants of the return on IT investments. Originality/value Understanding the link between firm performance and IT investments assists researchers and practitioners to understand why firms continue to pour enormous resources into IT and, more importantly, specifies the conditions under which firms are likely to achieve competitive advantages from their IT investments.


2019 ◽  
Vol 10 (2) ◽  
pp. 565-588 ◽  
Author(s):  
Abdel Latef M. Anouze ◽  
Ahmed Salameh Alamro ◽  
Abdulkareem Salameh Awwad

Purpose The purpose of this study is to answer the following questions: How to measure customer satisfaction from the provisioning service of both: Islamic and Conventional banks? Can we trust one tool to measure such satisfaction or both banks are different identities and there is a need for separate measurement tool? What is the relationship between banks operating style (Islamic or Conventional) and bank performance? Design/methodology/approach A cross-sectional survey design was conducted to analyze a sample of customers. A total of 480 Jordanian participants were included in the study. Findings The results of confirmatory factor analysis show that the most important drivers of customer satisfaction are Sharia’ compliance, complaints, pricing and convenience, whereas the least important drivers are e-banking, the perception of employees, enjoyment and tangibles. Also, the result of the multi-group analysis shows that the significant impacts of all drivers on customer satisfaction differ from Islamic banks to Conventional banks except for the enjoyment. The significant effects of customer satisfaction on bank performance also differ from Islamic to Conventional banks. Research limitations/implications The result is limited to the selected sample, and hence, future research in other countries should contribute to a better understanding of the impact of customer satisfaction relationship on bank success or performance. Practical implications This study provides a useful information for bank managers on the main driver of customer satisfaction and performance. Originality/value This study is intended to add to the existing literature in three ways: There is a lack of studies on the main drivers of customer satisfaction, especially those based on a consumer’s decision-making process in Arabic countries like Jordan. This study broadens the scope by testing the proposed model using data from a sample of consumers in Jordan. This study serves to propose and validate the drivers that influence customer satisfaction and bank performance and elucidate the manner of their influence, to help with the development of more effective business strategies.


2020 ◽  
Vol 27 (10) ◽  
pp. 3031-3050
Author(s):  
Qing-Wen Zhang ◽  
Heap-Yih Chong ◽  
Pin-Chao Liao ◽  
Yao-Lin Wan

PurposeThis study aims to determine the influences of explanatory factors on the efficacy of the implementation of corporate safety policy (CSP) in international projects from the perspective of international contractors.Design/methodology/approachFour explanatory factors were identified for the implementation of CSP in international projects based on literature review. A questionnaire survey was then conducted among Chinese organizations that have been involved in international projects. In total, 121 valid responses were received from the questionnaire survey and were modeled using logistic regression to examine the impact of each factor on the observed event of interest.FindingsThe factors related to the effectiveness of implementing CSP, including “attitudes toward safety management measures (ASMM),” “operational mechanism for safety regulations (OM),” “safety knowledge management system (SKMS)” and “systematic safety training scheme (STS),” were selected. The results revealed that OM and SKMS were significant predictors (p < 0.05) of the odds of implementation satisfaction of CSP, but ASMM and STS were not. The probability of satisfactory CSP implementation increased as the value of SKMS increased, whereas the probability of unsatisfactory implementation improved as the value of OM increased.Research limitations/implicationsThe questionnaire was distributed to respondents in international contractors headquartered in China. Other types of international organizations can be covered in future research. Furthermore, other factors, such as the local construction environment, should be considered in future studies.Practical implicationsThe results provide new insights on CSP implementation overseas. Effective implementation of CSP contributes to the improvement of the safety performance of contractors. The practical significance of interpreting the influence factors is that the contractors can implement more efficient and targeted approaches and tools in the execution of their CSP. The impact of OM reminds safety managers of the synchronization of CSP as well as its implementation environment and characteristics. The effect of ASMM encourages contractors to adopt Web-based and digital knowledge management systems to improve the implementation efficiency of CSP.Originality/valueThe novelty of this study lies in the selection of factors and their impacts on CSP implementation in international projects. This study has also extended knowledge on normative safety in international projects based on quantitative modeling.


2018 ◽  
Vol 11 (2) ◽  
pp. 146-173 ◽  
Author(s):  
Sudipendra Nath Roy ◽  
Tuhin Sengupta

Purpose The purpose of this paper is to provide a systematic literature review and contributes to academic understanding and practitioner needs of third party logistics (3PL) which were developed over the past decade. Design/methodology/approach Through a structured selection search of the entire English-language academic literature, after final refinement, the authors identified 95 relevant studies in this context. A succinct classification of literature has been performed to collate the entire literature encompassing viewpoints of both academicians and practitioners. Findings The key finding of this review suggests the opportunities exist in the understanding of the “optimization capabilities” of a 3PL provider. The authors found that when on the one side, constructs such as “supply chain vision”, “creativity”, “impact of geographical reach of services on the selection criteria” need more attention; on the other hand, operational dimensions of 3PL such as packaging ability, repair service, procedural compliance, conflict resolution, role of HR policies and mitigation of external risks provides a chance for future researchers to delve deeper into these domains. Furthermore, the authors also presented a comprehensive research gap framework highlighting potential research topics to be explored in near future. Research limitations/implications The paper captures peer-reviewed literature from the past decade and has been selected from the Web of Science database only. Originality/value The paper identifies different research gaps, namely, conceptual, contextual and methodological, to understand and develop opportunities for future research in the domain of 3PL. The paper makes a careful attempt by linking the synthesis of this literature review to previous literature reviews to establish the knowledge continuum of third party logistics.


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