A study into the impact of logistics sophistication of Brazilian shippers in the pattern of contracting the services of logistics operators

Abstract

The main objective of this study is to evaluate the impact of the logistics sophistication of Brazilian shippers on the acquisition pattern of 3PL (third-party logistics) service providers. The conceptual model of logistics sophistication and the major dimensions and variables relating to the acquisition pattern were defined and a questionnaire was sent to 218 Brazilian shippers listed on the Revista Exame ranking. Based on the 93 questionnaires returned, the analyses conducted indicate that the most sophisticated shippers are durable goods manufacturers and that they contract 3PL services providers for inventory management and higher value added services. In essence, these results indicate that the most sophisticated shippers seek 3PL service providers capable of managing logistics trade-offs such as inventory levels vs. asset utilization levels. These implications on the selection criteria of 3PL service providers are also discussed.