Overview on 3PL Selection Problem

Author(s):  
Aicha Aguezzoul

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.

2012 ◽  
pp. 259-273
Author(s):  
Aicha Aguezzoul

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.


Author(s):  
Mahesh S. Raisinghani

A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. In other words, supply chain encompasses all of the activities associated with moving goods from raw-materials stage through to the end user. The information systems needed to monitor all of these activities are a critical part of the mix. Successful supply chain management (SCM), then, coordinates and integrates all of these activities into a seamless process. It embraces and links all of the partners in the chain. In addition to the key functional areas within the organization, these partners include vendors, carriers, third-party logistics companies, and information systems providers.


Author(s):  
Pier Paolo Carrus ◽  
Roberta Pinna

Logistics Service Providers (3PL) have become important players in supply chain management. In a highly competitive context characterized by “time compression”, a successful strategy depends increasingly on the performance of Logistics Service Providers as they play a key integrative role linking different supply chain elements more effectively. However, the role of the information technology capability of these 3PL has not drawn much attention. The research question is: can IT be viewed as a fundamental supply chain management coordination mechanism? If so, does IT capability of third party logistics providers to improve performance in the supply chain and become a bigger factor in a strategic buyer-3PL relationship? By drawing on earlier research on the supply chain management coordination mechanism, the IT capability of third party logistics providers, a case study is conducted.


Author(s):  
Marc Allden ◽  
Wesley Niemann ◽  
Theuns Kotzé

Background: There is currently a skills mismatch between what the third-party logistics (3PL) industry expects from new supply chain management graduates and what the educational system supplies. As the traditional roles of 3PLs are changing, subsequently increasing their importance within the supply chain industry, supplying graduates with the necessary skills becomes even more critical.Objectives: The aim of this study was to determine what the South African 3PL industry expects from new graduates with a bachelor’s degree in supply chain management or related fields in relation to skills, personal attributes and knowledge.Method: A generic qualitative research design was used to collect data from 12 participants using semi-structured interviews.Results: It was found that academic institutions equip new graduates adequately with knowledge, but not with the expected skills. Furthermore, the findings confirmed the current literature, while also identifying additional expectations. 3PLs expect new graduates to perform various activities throughout the supply chain, such as warehousing and transport activities, while simultaneously using their technological knowledge and abilities to improve different processes within the supply chain. This requires new graduates to be creative, innovative and analytical and to have advanced communication skills. Therefore, supply chain management programmes should provide graduates with more exposure and experiences in real-life supply chain settings.Conclusion: The findings allow for academic institutions to revise and adapt their curricula to meet the need of more practical skills development.


Author(s):  
Swapnil Sawant ◽  
Avinash Sarode

The Indian manufacturing industry is growing rapidly, and supply chain management (SCM) plays the most important role in the industry. In SCM, customer satisfaction in terms of quantity, quality and on time delivery is the most important critical factor. To satisfy this requirement, the best third-party logistics (3PL) service provider is required.  Therefore, the selection of the best third-party logistics provider is one of the basic requirements in SCM. Logistics services are the backbone of an economy, providing the efficient, cost effective flow of goods and services on which other commercial sectors depend. The logistics companies work as the outsourced or third-party service providers and support the organization's logistics functions. In this study, we identified some important criteria for 3PL implementation in SCM in Indian manufacturing industries.  With the help of this study, supply chain managers from small to medium sized manufacturing industries can simplify the selection process for 3PL vendors. This study will help in the selection of the best vendor from such a competitive group and provide justification for the selection. 


Author(s):  
Jonah C. Tyan

This chapter introduces the applications of collaborative transportation and consolidation management in global third-party logistics. These practices are driven by the quest to improve service and reduce cost simultaneously under an e-commerce model of global supply chain management. The detailed development and elements of collaborative transportation and consolidation models are discussed along with case illustrations. Furthermore, a quantitative model using mathematical programming is developed to examine various consolidation policies in a global third-party logistics provider. A case using collaborative consolidation management is presented, and the results show a 6.6% and 18.2% improvement for service and cost comparing with existing practice. The collaborative principles and developed consolidation model can be a useful reference for similar applications.


2011 ◽  
Vol 3 (4) ◽  
pp. 21-36 ◽  
Author(s):  
Pier Paolo Carrus ◽  
Roberta Pinna

Logistics Service Providers (3PL) have become important players in supply chain management. In a highly competitive context characterized by “time compression”, a successful strategy depends increasingly on the performance of Logistics Service Providers as they play a key integrative role linking different supply chain elements more effectively. However, the role of the information technology capability of these 3PL has not drawn much attention. The research question is: can IT be viewed as a fundamental supply chain management coordination mechanism? If so, does IT capability of third party logistics providers to improve performance in the supply chain and become a bigger factor in a strategic buyer-3PL relationship? By drawing on earlier research on the supply chain management coordination mechanism, the IT capability of third party logistics providers, a case study is conducted.


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