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.

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 Logistics Outsourcing: Why Do Not Some Italian SMEs Adopt the Externalization?

2017 ◽  
Vol 2 (2) ◽  
pp. 46 ◽  
Author(s):  
Andrea Payaro ◽  
Anna Rita Papa
Keyword(s):  
Cost Model ◽  
Third Party ◽  
Third Party Logistics ◽  
Bottom Line ◽  
Logistics Outsourcing ◽  
Logistics Services ◽  
Logistics Market ◽  
Outsourcing Logistics ◽  
Adoption Level ◽  
Large Enterprises

Logistics is a one of the common function that companies usually outsourced. The decision to keep this function in-house or contract with one or many third-party logistics (3PL) companies is entirely strategic and can dramatically impact any organization's bottom line. 3PL users report an average of 44% of their total logistics expenditures are related to outsourcing. 72% of firms are increasing their use of outsourced logistics services in 2015, which is up slightly from the average reported in recent years. Most developed outsourcing logistics market belongs to the U.S. with 88%. It is followed by Asia 48%, and Europe – 46% (O’Reilly, 2010). In Italy some industries can reach the 70%, in particular food, groceries and fashion (Osservatorio Contract Logistics del Politecnico di Milano). There are many researches about logistics and large enterprises. There are less studies about Small and medium-sized enterprises (SMEs) and logistics outsourcing. SMEs play a major role in the Italian economic system. Their business activities have become an important component of the Italian economy.This paper aims to depict the adoption level of outsourcing by Italian SMEs. By direct interviews to 28 companies’ representatives we investigate which services or processes are outsourced. We investigate the reasons why companies adopt or don’t adopt the externalization. Moreover, for every company we calculate the logistics costs of simple logistics processes. In effect, we wish to compare the logistics costs communicated by the firms and the same costs calculated with ABC (Activity Based Cost) model. This research demonstrate that SMEs adopt 3PLs only for transportation. SMEs do not know all the logistics services offered by 3PLs and SMEs think the services are dedicated only to large enterprises. Finally, many companies are not able to calculate logistics costs, then they cannot compare a 3PL offer with their real costs.

The use of third-party logistics services by European industry

1998 ◽  
Vol 1 (3) ◽  
pp. 167-179 ◽  
Author(s):  
Melvyn J. Peters ◽  
Hugh L. Randall ◽  
Robert C. Lieb
Keyword(s):  
Third Party ◽  
Third Party Logistics ◽  
Logistics Services ◽  
European Industry

Overview on 3PL Selection Problem

2013 ◽  
pp. 266-279
Author(s):  
Aicha Aguezzoul
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Third Party ◽  
Selection Problem ◽  
Third Party Logistics ◽  
Literature Analysis ◽  
Chain Management

Many companies outsource their logistics functions to Third-Party Logistics providers (3PL) instead of achieving them internally. The studies on this field are mostly of empirical type and focused on reasons, benefits, and risks of working with 3PL as well as the role of those on supply chain management. This chapter focuses on 3PL selection problem and presents a literature analysis of 47 articles published within 2001-2011 period. The objective is to identify the mainly approaches applied and their evaluating criteria in measuring the performance of 3PL.

Byzantine Fault-Tolerant Architecture in Cloud Data Management

2016 ◽  
Vol 7 (3) ◽  
pp. 86-98 ◽  
Author(s):  
Mohammed A. AlZain ◽  
Alice S. Li ◽  
Ben Soh ◽  
Mehedi Masud
Keyword(s):  
Cloud Computing ◽  
Data Management ◽  
Service Provider ◽  
Fault Tolerant ◽  
Academic Research ◽  
Third Party ◽  
Cloud Data ◽  
Byzantine Faults ◽  
Byzantine Fault ◽  
Cloud Data Management

One of the main challenges in cloud computing is to build a healthy and efficient storage for securely managing and preserving data. This means a cloud service provider needs to make sure that its clients' outsourced data are stored securely and, data queries and retrievals are executed correctly and privately. On the other hand, it may also mean businesses are willing to outsource their data to a third party only if they trust their data are not accessible and visible to the service provider and other non-authorized parties. However, one of the major obstacles faced here for ensuring data reliability and security is Byzantine faults. While Byzantine fault tolerance (BFT) has received growing attention from the academic research community, the research done is generally from the distributed computing point of view, and hence finds little practical use in cloud computing. To that end, the focus of this paper is to discuss how these faults can be tolerated with the authors' proposed conceptualization of Byzantine data faults and fault-tolerant architecture in cloud data management.

Disentangling the driving factors of logistics outsourcing: a configurational perspective

2019 ◽  
Vol 32 (6) ◽  
pp. 964-992 ◽  
Author(s):  
Qingyao Wan ◽  
Yang Yuan ◽  
Fujun Lai
Keyword(s):  
Qualitative Comparative Analysis ◽  
Third Party ◽  
Manufacturing Companies ◽  
Positive Role ◽  
Logistics Outsourcing ◽  
Content Type ◽  
Logistics Services ◽  
Different Types ◽  
External Management ◽  
Configural Analysis

Purpose The purpose of this paper is to explore how external pressures, internal capability and transaction attributes of logistics outsourcing synergically influence the extent of asset-based and non-asset-based logistics outsourcing. Design/methodology/approach Based on the data surveyed from 250 manufacturing companies in China, this study employed fuzzy-set qualitative comparative analysis (fsQCA) to deduce multiple configurations for logistics outsourcing decisions. Findings The results suggest that asset-based logistics outsourcing is primarily driven by external imitation pressures or internal demands for logistics technologies, while non-asset-based logistics outsourcing is mainly driven by the demands for external management-based logistics services. Asset specificity plays a positive role in promoting both asset-based and non-asset-based logistics outsourcing. The requirement for third-party logistics (3PL) management capability depends on the outsourcing types and outsourcing causes. Practical implications This study provides guidance to practitioners for them to make outsourcing decisions. It suggests that asset-based logistics outsourcing is more appropriate when there are high external imitation pressures or more internal logistics demands, while non-asset-based logistics outsourcing should be used only when a firm needs management-based logistics services. Besides, 3PL users are suggested to outsource their logistics when their 3PL providers are required to make specific investments. In addition, managers should carefully evaluate firms’ capabilities in managing outsourcing relationships. Originality/value Previous studies largely ignored the interaction effects of a set of factors on logistics outsourcing decisions, and to date, little research empirically examined how outsourcing is driven in terms of different types of outsourcing. Drawing on the institutional theory, dynamic capability view, and transaction cost theory and overarching under the complexity theory, this study examines how institutional, organizational and transactional factors interplay with each other to influence different types of logistics outsourcing (i.e. asset based and non-asset based). Methodologically, the configural analysis (i.e. fsQCA) is applied to explore complex causal configurations that drive logistics outsourcing.

Information Exchange, Responsiveness and Logistics Provider Performance

1996 ◽  
Vol 7 (2) ◽  
pp. 43-58 ◽  
Author(s):  
Theodore P. Stank ◽  
Patricia J. Daugherty ◽  
Alexander E. Ellinger
Keyword(s):  
Conceptual Model ◽  
Information Exchange ◽  
Third Party ◽  
Third Party Logistics ◽  
Performance Information ◽  
Provider Performance ◽  
Logistics Services ◽  
Trading Partners ◽  
And Performance ◽  
The Impact

The impact of information exchange on suppliers' performance is investigated in the context of trade relationships formed between manufacturers and third party providers of international logistics services. A conceptual model that predicts the important linkages among information exchange, responsiveness and performance is introduced and tested. The research shows that information exchange positively affects customers' perceptions of third party logistics providers' performance; information exchange also positively affects logistics providers' service responsiveness; and logistics provider responsiveness affects customers' perceptions of the providers' performance. These linkages provide a fuller understanding of why and how information exchange influences manufacturers' perceptions of the performance of third party logistics providers. Logistics providers that used information obtained from trading partners to develop more responsive operations were viewed as better performers.

The Expansion Dilemma for Fourth-Party Logistics Services: Kodan Solutions Private Limited

2020 ◽  
Vol 24 (4) ◽  
pp. 506-516
Author(s):  
Anupama Prashar
Keyword(s):  
Supply Chain ◽  
Value Added ◽  
Secondary Data ◽  
Third Party ◽  
Primary Data ◽  
Business Trend ◽  
Logistics Services ◽  
Fourth Party Logistics ◽  
Outsourcing Logistics

The purpose of the case is to introduce the students to an emerging business trend of outsourcing the logistics function. The case enables the students to analyse the benefits of outsourcing logistics function and understand the concept of third-party logistics (3PL) and fourth-party logistics (4PL). The case is developed based on the primary data collected through interviews with the protagonist. Also, secondary data from published reports and archives of the company were used for the development of the case. After the case discussion the students will be able to understand the role of project logistics services in the supply chain. They will also understand the role of value-added logistics services such as cross-docking, reverse logistics and customs clearance, and the documentation involved in cross-border logistics. This case is among the first few cases on the concept of project logistics services and their role in the supply chain management.

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