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 Sustainability and Competitiveness of Logistics Services Providers in Indonesia

2021 ◽  
Vol 12 (3) ◽  
pp. 279-287
Author(s):  
Engkos Achmad Kuncoro ◽  
Dony Saputra ◽  
Robin Cahyadi ◽  
Ridho Bramulya Ikhsan
Keyword(s):  
Middle Managers ◽  
Service Providers ◽  
Sampling Technique ◽  
Third Party ◽  
Third Party Logistics ◽  
Logistics Service ◽  
Logistics Service Providers ◽  
Logistics Services ◽  
Qualitative Observation ◽  
The Relationship

With the rise of competition and challenges for Logistics Service Providers (LSP) in Indonesia, competitiveness and sustainability are needed. The research explored the logistical process and identified the factors that built the competitiveness of LSP, such as Third-Party Logistics (3PL) in Indonesia. The research also identified the factors and relationships of their competitiveness and sustainability. The research methodology was explorative with the qualitative-observation approach. The applied sampling technique was purposive and snowball. The participants were 10 LSP operating in Indonesia: Kühne + Nagel, FedEx, Damco, DB Schenker, APL Logistics, Panalpina, Agility Logistics, TNT Express, Röhlig Logistic, and Rhenus Logistic. The data were unstructured interviews with 10 middle managers with the job position of leader and manager. Then, the data were analyzed using NVivo 10 software. The result is the recommendation of the competitiveness model for 3PL that the providers can apply to achieve its sustainability. Moreover, the factors that drive the competitiveness of LSP are price, service, people, and network. Meanwhile, innovation and credibility will improve competitiveness toward sustainability of 3PL. Based on the findings, it can offer opportunities for further research on the relationship and influence of these variables on other similar companies in other countries.

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 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.

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.

scholarly journals Evaluation and Selection of Nigerian Third-Party Logistics Service Providers Using Multi-Criteria Decision Models

2021 ◽  
Vol 12 (1) ◽  
pp. 135-146
Author(s):  
E.A. Ejem ◽  
C.M. Uka ◽  
D.N. Dike ◽  
C.C. Ikeogu ◽  
C.C. Igboanusi ◽  
...  
Keyword(s):  
Service Providers ◽  
Service Level ◽  
Decision Makers ◽  
Third Party ◽  
Decision Models ◽  
Third Party Logistics ◽  
Logistics Service ◽  
Logistics Service Providers ◽  
Selection Of

Abstract This paper is focused on solving the evaluation and selection of 3PL’s by applying multi-criteria decision-making methods. Nigerian Breweries, Nigerian Bottling Company (NBC), AG Leventis, Kobo logistics, and Flour Mills of Nigeria (FMN) were understudied. The main criteria on which evaluation is based were established: Cost, Service level, Financial Capability, Reputation and Long-term relationship. A combination of two quantitative models was adopted in the study. Relevant data were collected through an oral interview with managers and key decision-makers at the companies. SWARA was first applied to the collated data to determine the relative weights of the criteria. Afterwards, the TOPSIS was applied to the weights developed using SWARA and on the performance of the selected service providers. After the analysis, the best service provider was identified as supplier 2 while the worst was supplier 5.

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.

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