Operational Risk Management in Third Party Logistics (3PL)

2018 ◽  
pp. 676-698 ◽  
Author(s):  
Diego Fernando Manotas-Duque ◽  
Juan Carlos Osorio-Gómez ◽  
Leonardo Rivera
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Strategic Alliances ◽  
Operational Risk ◽  
Third Party ◽  
Third Party Logistics ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Risk Sources ◽  
Reducing Costs

Supply chain risk management processes are among the most important activities in the value chain of any industry. The supply chain risk management process includes different activities, focused on the identification, measurement, assessment, and mitigation of the main risk sources that can affect a supply chain. The increasing complexity facing global supply chains generates the need for suppliers to collaborate in different processes in a supply chain. In this context, Third Party Logistics Providers (3PL) have been widely promoted by the phenomenon of outsourcing, on which companies increasingly rely. The growth in logistics outsourcing is mainly attributed to the benefits it brings in terms of reducing costs, improving performance, allowing companies to focus on their core businesses and building virtual enterprises through strategic alliances. In this chapter we develop a model to identify the operational risk factors of a 3PL provider.

Operational Risk Management in Third Party Logistics (3PL)

2016 ◽  
pp. 218-239 ◽  
Author(s):  
Diego Fernando Manotas-Duque ◽  
Juan Carlos Osorio-Gómez ◽  
Leonardo Rivera
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Strategic Alliances ◽  
Operational Risk ◽  
Third Party ◽  
Third Party Logistics ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Risk Sources ◽  
Reducing Costs

Supply chain risk management processes are among the most important activities in the value chain of any industry. The supply chain risk management process includes different activities, focused on the identification, measurement, assessment, and mitigation of the main risk sources that can affect a supply chain. The increasing complexity facing global supply chains generates the need for suppliers to collaborate in different processes in a supply chain. In this context, Third Party Logistics Providers (3PL) have been widely promoted by the phenomenon of outsourcing, on which companies increasingly rely. The growth in logistics outsourcing is mainly attributed to the benefits it brings in terms of reducing costs, improving performance, allowing companies to focus on their core businesses and building virtual enterprises through strategic alliances. In this chapter we develop a model to identify the operational risk factors of a 3PL provider.

scholarly journals An exploration of supply chain risk management in the South African third-party logistics industry

2019 ◽  
Vol 19 (1) ◽  
Author(s):  
Arno Meyer ◽  
Wesley Niemann ◽  
Gerhard Uys ◽  
Déan Beetge
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
South African ◽  
Third Party ◽  
Primary Sources ◽  
Third Party Logistics ◽  
Supply Chain Risk Management ◽  
The South ◽  
Supply Chain Risk ◽  
Supply Chain Risks

Orientation: The management of supply chain risks, disruptions and vulnerabilities has become a significant issue in supply chain management research in recent times.Research purpose: The purpose of this study was threefold, namely to (1) determine whether there is a clear understanding of supply chain risk management (SCRM) within the South African third-party logistics service providers (3PL) industry, (2) investigate the primary sources that lead to disruptions and vulnerabilities within the supply chains of South African 3PL organisations and (3) establish the current tools or methods used by supply chain practitioners to mitigate supply chain risks within the 3PL industry in South Africa.Motivation for the study: Supply chain risks are ever increasing and evolving which may have a substantial influence on organisational and supply chain performance.Research design, approach and method: A generic qualitative research method was used to gather data. A total of 20 purposively selected participants drawn from 20 3PL organisations with headquarters located in Gauteng province participated in semi-structured interviews.Main findings: The findings indicate a juxtaposition regarding South African 3PL supply chain practitioners’ understanding of SCRM compared to literature, as the participants were found to only identify certain tenets of SCRM with no single participant comprehensively describing SCRM according to the literature. External disruptions, namely customer- and supply-side disruptions within the South African 3PL industry were found to be the primary sources of supply chain disruptions. The findings further indicate that supply chain vulnerabilities emanate predominantly from labour strikes and cyberattacks.Practical/managerial implications: The implementation of SCRM is constrained by the high costs of implementation, the unwillingness of supply chain partners to buy into SCRM, power imbalances in supply chain relationships and other uncontrollable factors between different supply chain members.Contribution/value-add: Supply chain practitioners in the 3PL industry should realise the significance of effective SCRM practices, as well as the positive impact proactive SCRM practices could have on their organisations as well as on supply chain partners.

scholarly journals Supply Chain Risk Management Strategies: A Study of South African Third-Party Logistics Providers

2020 ◽  
Vol 24 ◽  
Author(s):  
Mandla Mvubu ◽  
Micheline Naude
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Supply Chain ◽  
South African ◽  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
And Control

The purpose of this study was to determine the supply chain risk management (SCRM) strategies that South African third-party logistics (3PL) service providers use to mitigate risks, the extent to which they adopt these strategies and the benefits derived thereof. An exploratory and descriptive method technique was adopted. The empirical study comprised of email surveys administered to 398 supply chain managers employed by South African 3PLs. The findings reveal that respondents place greater importance on risk identification than on the other SCRM strategies. Risk assessment attained the lowest rating, implying that 3PL providers placed the least importance on this risk assessment strategy. Risk response and risk monitoring, reporting and control are all adopted to a significantly lesser extent. The findings also revealed that 3PL providers derive significant benefits from all SCRM strategies. A limitation of this study is that not all 3PL providers affiliated with SAAFF participated. In addition, because only members of senior management were included in the study, the opinions of operational and tactical staff were not obtained. The study contributes to the current body of knowledge on SCRM by exploring how 3PL providers in a developing country, such as South Africa, assess supply chain risks, the strategies they have in place to respond to these risks, and the mechanisms in place to monitor and control SCM risks.

Barriers to multi-tier supply chain risk management

2020 ◽  
Vol 31 (3) ◽  
pp. 465-487
Author(s):  
Liyuan Wang-Mlynek ◽  
Kai Foerstl
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Information And Communication Technologies ◽  
Strategic Alliances ◽  
Case Analysis ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
High Dependency ◽  
Civil Aircraft

PurposeMulti-tier supply chain risk management (MSCRM) is an evolving and dynamic field, as any defaults or glitches in supply chains can potentially harm the efficiency and competitiveness of the entire supply chain. This study aims to investigate barriers to MSCRM in the automotive and civil aircraft industries.Design/methodology/approachThis study adopts an inductive case study research design. The case analysis includes two parts. First, the within-case analysis develops case profiles and identifies critical categories. Second, the cross-case analysis compares MSCRM patterns across the cases.FindingsThis study argues that narrow information sharing and communication covering only the immediate supply chain partners obstruct the efficiency of MSCRM. Similarly, high dependency on strategic alliances with suppliers hinders efficient MSCRM. Additionally, relying on information and communication technologies (ICT) increases companies' exposure to risks and poses another barrier to efficient MSCRM.Research limitations/implicationsFurther research should be pursued to expand generalizability and test the validity of the findings using other forms of data collection and methodologies, such as large-scale surveys, experiments or secondary data across different sectors and typical supply networks.Practical implicationsThis study provides empirical evidence on the obstacles faced by companies during the process of MSCRM. These findings can guide practitioners in developing initiatives to overcome these challenges.Originality/valueThis study is among the first to investigate the barriers to MSCRM in the automotive and civil aircraft industries using in-depth case studies across three tiers of the supply chain.

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