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.

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.

3PLSP scale for co‐operative dairies in Indian context

2012 ◽  
Vol 24 (3) ◽  
pp. 515-532 ◽  
Author(s):  
Tejas R. Shah ◽  
Mahendra Sharma
Keyword(s):  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Content Type ◽  
Five Dimensions ◽  
Stable Factor ◽  
Logistics Service ◽  
Indian Context ◽  
Operational Level ◽  
Logistics Service Providers

PurposeThe purpose of this paper is to develop a scale for measuring benefits of third party logistics service providers for co‐operative dairies in an Indian context. The objective is to measure benefits of third party logistics service providers for co‐operative dairies.Design/methodology/approachA standard scale development research procedure recommended by experts was followed. First, the literature review of studies to measure benefits of third party logistics was undertaken. Later, Delphi method was used. Interviews were conducted of experts and customers for understanding and generating items for measuring benefits of third party logistics service providers for co‐operative dairies. A survey was then undertaken first for development of the scale and later for validation purpose.FindingsA reliable and valid scale is developed to measure the five dimensions of benefits of using 3PLSPs for co‐operative dairies: responsiveness, accuracy, customization of service, inventory handling and order processing and information sharing.Research limitations/implicationsThis scale is developed to outsource logistics functions at operational levels in the context of co‐operative dairies in India. So, this scale can be tested for co‐operative dairies of countries other than India. The scale can also be tested where outsourcing of logistics activities is done at operational level, other than co‐operative dairies.Practical implicationsThe proposed scale can be used as a diagnostic tool to identify important benefits to consider in outsourcing operational function of logistics management to 3PLSPs in co‐operative dairies.Originality/valueMost relevant studies about benefits of third party logistics service providers do not have stable factor structure, especially for co‐operative dairies. The new scale fills the gap of the absence of a validated scale to measure benefits of 3PLSPs for co‐operative dairies at operational level.

scholarly journals Segmentasi Pasar Penyedia Jasa Logistik (Third Party Logistics) di Indonesia

2010 ◽  
Vol 1 (2) ◽  
pp. 332
Author(s):  
Darjat Sudrajat
Keyword(s):  
Market Segmentation ◽  
Service Providers ◽  
Marketing Strategies ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Industry ◽  
Logistics Service ◽  
Logistics Service Providers ◽  
Food And Beverage ◽  
Logistic Service

Market segmentation is fundamental in marketing strategy and the first step of market-based strategy preparation, to strengthen its marketing efficiency, and creating opportunities for sales growth and profits. This also applies to market segmentation logistics service providers (TPL - Third Party Logistics), the market is highly developed in the last decade, so that the logistics service providers has to develop marketing strategies properly. The purpose of this research is to gain a better understanding of different industries that exist today and map the needs of the logistics services of TPL customers. Based on exploration research conducted, it can be found in conformities relating to the logistics industry from several companies, ie appropriateness to the complexity of logistics activities of some companies and degree of investment of TPL services company in conducting the activity. Logistics service provider market segmentation can be based on variable complexity of logistics activities, whether it is high, medium or low and variable degrees of investment in the company whether minor, major, or integrated/total. Companies in different industries can have the same logistic service requirements and companies in the same industry can have different logistic service requirements. Client companies for logistics service providers which product handling are classified as semi-complex is the most attractive customer segments for being penetrated. The industries are classified into this segment is automotive, food and beverage, animal food, ceramic, and plantation. 

Relationship marketing and third-party logistics: evidence from hotel industry

2020 ◽  
Vol 3 (3) ◽  
pp. 371-393 ◽  
Author(s):  
Sajjida Reza ◽  
Muhammad Shujaat Mubarik ◽  
Navaz Naghavi ◽  
Raja Rub Nawaz
Keyword(s):  
Relationship Marketing ◽  
Service Providers ◽  
Hotel Industry ◽  
Partial Least Square ◽  
Third Party ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Content Type ◽  
Specific Investment

PurposeThis study examines the outsourcing criteria prevalent in the Hotel industry of Pakistan. In doing so, the study investigates the role of trust in the association between relationship marketing dimensions—communication, opportunistic behavior, reputation, satisfactory prior outcomes and specific investment—and third-party logistics provider’s (3PL) selection.Design/methodology/approachUsing a close-ended questionnaire, data were collected from 97 hotels of various categories operating in Pakistan and involved in 3PL outsourcing. Partial Least Square–Structural Equation Modeling was employed to estimate the modeled relationships.FindingsWith a high predictive relevance of the model, communication, satisfactory prior outcome and reputation were found to have a significant effect on the trust, whereas the results showed a significant mediating role of trust in the association between communication, reputation and 3PL provider’s selection.Research limitations/implicationsThe study uses static data from selected firms and cannot be used to analyze behavior over a period of time. Hence, a generalization of results should be made carefully.Practical implicationsFindings imply that for fully capitalizing on the benefits by virtue of their prospective relationship, the managers must streamline their processes and activities according to path directions that endorse a higher degree of trust in their service providers and establish an effective system of communications interconnecting their mutual goals and objectives.Originality/valueThe outcome of the research study illustrated the perceptions of the local businesses with regards to the 3PL service provider(s) selection via the establishment of trust.

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.

scholarly journals The role of TPLs in innovative logistics solutions in importation

2018 ◽  
Vol 15 (1) ◽  
pp. 73-91
Author(s):  
Alessandra Vitorino Razzera ◽  
Marcelo André Machado
Keyword(s):  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Content Type ◽  
Logistics Service Providers ◽  
Multiple Case ◽  
The Subject ◽  
Mind Set

Purpose The purpose of this paper is to investigate the role of third-party logistics providers (TPLs) in providing innovative logistics solutions for Brazilian importations. Design/methodology/approach A multiple case study has been conducted in which four logistics service providers are interviewed on the topic of innovation in importation logistics. The collected data (interviews, brochures and presentations) were triangulated and analyzed. Findings The collected data highlight the integrating role of TPLs in providing innovative logistics solutions of the technological nature, in addition to drivers, which involve communication, trust, logistics and institutional actions. Research limitations/implications This study, instead of focusing on procedural issues, intended to focus on two important theoretical and practical drivers: innovation in the importation process and strengthening of intangible factors. It is known that trading conditions and geographical proximity have an impact in importation, but they have not been discussed here because of the subject delimitation of the present study. Regarding the implications of the present study, no specific theoretical reference has been found on the subject in terms of the importation process but is rather related to information technology, which is then presented. Practical implications This study focuses on the fundamental role of TPLs in the development of innovative logistics solutions in importation. Social implications The fundamental role of TPLs in the development of innovative logistics solutions in importation is based on trust and relationship, internal and external to the organization. Originality/value This study, instead of focusing on procedural issues, intends to focus on two important theoretical and practical drivers – innovation in the importation process and strengthening of intangible factors – suggesting that a change of mind-set and a differentiated background in importation logistics are developed by TPLs.

An empirical analysis on the performance of the third-party logistics in the Korean exporter

2016 ◽  
Vol 20 (1) ◽  
pp. 97-114 ◽  
Author(s):  
Yoon-Hwan Park ◽  
Yoon-Say Jeong
Keyword(s):  
Structural Equation ◽  
Service Providers ◽  
Statistical Significance ◽  
Strong Support ◽  
Cost Savings ◽  
Partial Least Square ◽  
Least Square ◽  
Third Party ◽  
Third Party Logistics ◽  
Content Type

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.

Knowledge management in environmental sustainability practices of third-party logistics service providers

VINE ◽  
2015 ◽  
Vol 45 (4) ◽  
pp. 509-529 ◽  
Author(s):  
Pietro Evangelista ◽  
Susanne Durst
Keyword(s):  
Literature Review ◽  
Environmental Sustainability ◽  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Content Type ◽  
Service Companies ◽  
Logistics Service ◽  
Logistics Service Providers ◽  
Sustainability Practices

Purpose – The purpose of this paper is to provide a structured literature review on knowledge management (KM) and KM strategy in environmental sustainability practices of logistics service providers. The paper highlights the nature and scope of existing research and identifies areas for future research. Design/methodology/approach – The study consists of a systematic review of existing research regarding KM in sustainable logistics. In all, 38 refereed research papers formed the basis of analysis. This methodology allows for the minimization of researcher bias and the maximization of reliability and replicability. Findings – The literature review made possible the identification of three basic elements through which building-up appropriate KM approaches and KM strategies in the area of environmental sustainability by third-party logistics service companies will be enhanced: customer relationship management, quality of human resources and the adoption of information and communication technology tools and systems. Research limitations/implications – This study may not have enabled a complete coverage of all articles in the field of KM in the context of environmental sustainability practices of logistics service companies. Yet, it seems reasonable to assume that the review process covered a large share of studies available. The main research implications deriving from the study concern research methods, analysis of factors hampering/supporting the implementation of KM in practices related to environmental sustainability, development of measures to demonstrate the impact of KM on sustainability practices and role of different stakeholders in the implementation of KM in environmental sustainability practices. Originality/value – To the best of the authors ' knowledge, no systematic literature review on this topic has previously been published in academic journals.

Customer pressure and green innovations at third party logistics providers in China

2019 ◽  
Vol 30 (1) ◽  
pp. 57-75 ◽  
Author(s):  
Zhaofang Chu ◽  
Linlin Wang ◽  
Fujun Lai
Keyword(s):  
Organizational Culture ◽  
Service Providers ◽  
Organization Culture ◽  
Third Party ◽  
Third Party Logistics ◽  
Green Innovation ◽  
Content Type ◽  
Logistics Service Providers ◽  
Conditional Effect ◽  
The Relationship

PurposeThe purpose of this paper is to investigate how customer pressure influences green innovation in the context of Chinese third-party logistics (3PL) providers, and especially the role of organizational culture in moderating this relationship.Design/methodology/approachBased on survey data collected from 165 3PL providers in China, hierarchical moderated regression analysis was conducted to test the hypotheses.FindingsCustomer pressure is an important driver of green innovation amongst 3PL providers. Flexibility-oriented organizational culture strengthens the effect of this driving force, while control-oriented organizational culture weakens this force. Green innovation significantly contributes to financial performance and flexibility orientation strengthens this contribution, while control orientation weakens it.Research limitations/implicationsThis research examines the contingency effect of organizational culture in helping to resolve inconsistencies in the relationship between customer pressure and green innovation. Although the inconsistencies cannot be resolved completely, the research opens an avenue to explore other contingency factors or the possibility of a non-linear relationship.Practical implications3PL firms could undertake green innovation to satisfy customers’ environmental requirements. To develop their green innovation initiatives, managers should allow their employees greater autonomy and design (or re-design) operations procedures and regulations to be more flexible, thus enabling the diffusion of green innovation and avoiding or reducing the potential influence of control-oriented organization culture.Originality/valueThe study considers the conditional effect of organizational culture to reconcile the mixed results in the literature regarding the relationship between customer pressure and green innovation of logistics service providers.

scholarly journals Sustainability-related risk management in buying logistics services

2017 ◽  
Vol 28 (4) ◽  
pp. 1351-1367 ◽  
Author(s):  
Sirpa Multaharju ◽  
Katrina Lintukangas ◽  
Jukka Hallikas ◽  
Anni-Kaisa Kähkönen
Keyword(s):  
Risk Management ◽  
Service Providers ◽  
Raw Material ◽  
Logistics Industry ◽  
Content Type ◽  
Logistics Service ◽  
Material Sources ◽  
Sustainable Logistics ◽  
Related Risk ◽  
Logistics Services

Purpose Sustainability-related risk management of logistics service providers (LSPs) is an essential part of sustainability performance of focal companies, as logistics services touch the entire supply chain (SC) – from raw material sources to end-customers. The purpose of this paper, draws on resource-based view and stakeholder theory in exploring how companies can manage environmental and social sustainability-related risks from logistics service suppliers. This kind of capability is essential in order to maintain reputation in the eyes of stakeholders, and to maintain long-term financial performance. Design/methodology/approach The data of this multiple-case study were collected from semi-structured interviews in eight case-companies in Finland. Five of the cases are primary logistics buyers, and three represent LSP companies. Findings The cross-case analysis showed that primary buyers of logistics services use their sustainability criteria as a prerequisite for LSP candidates, and when the level is adequate and equal, other factors, e.g. price and capacity, are decisive. Based on the analysis, large LSPs are preparing for the future competition, and act in a more sustainable manner than their customers (buyers) expect at the moment, while small LSPs strictly comply with the regulation. However, buyers’ requirements for sustainable logistics services are increasing as the stakeholder expectations for comprehensively sustainable SCs are growing. Originality/value Only little research has been conducted on sustainable logistics from the buyer company’s risk management perspective. This paper adds the knowledge of sustainability-related risk management in purchasing of logistics services and in the logistics industry.

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