Benefits, Risks, Selection Criteria and Success Factors for Third-Party Logistics Services

Abstract

The need to reduce logistics costs is well recognised, often, however, without identification of the factors that could contribute to such a reduction. Third-party logistics (3PL) is an augmenting activity of the transport system, which can strengthen the cooperation of different transport modes. As a new practice, conditions of success are driven from personal or empirical situations, often hiding the real causes. To tackle this problem, a major survey has been conducted among both buyers and suppliers of logistics services in the United Kingdom. From the survey, several key findings of customer perceptions of logistics services provided by 3PL companies were derived. Results of the survey show a clear difference in points of view between suppliers and buyers. The results of the survey shed light on how the architecture of logistics outsourcing can be improved. Maritime Economics & Logistics (2008) 10, 380–392. doi:10.1057/mel.2008.12

Applying the Delphi method to determine best practices for outsourcing logistics in disaster relief

“…In contrary to the field of humanitarian logistics, a number of dedicated studies have investigated success factors for outsourcing in the context of commercial logistics. They highlight the importance of planning the outsourcing engagement up-front and jointly with the provider (Goles and Chin, 2002;de Grahl, 2011;Hauptmann, 2007;Lambert et al, 1999;Selviaridis et al, 2008) and the benefits of establishing close working relationships with open communication and information exchange (Frankel et al, 1996;Goles and Chin, 2002;de Grahl, 2011;Lambert et al, 1999;Leahy et al, 1995;Qureshi et al, 2007;Selviaridis et al, 2008;Tate, 1996;van Laarhoven et al, 2000). They also emphasize the need for aligning expectations, clearly defining requirements and being thorough in the contract negotiations (Frankel et al, 1996;Hofenk et al, 2011;Lambert et al, 1999;van Laarhoven et al, 2000).…”

Analysis of Factors Affecting the Performance of Sme Exports in Central Java Through Export Marketing Strategies

“…Third-party logistics (3PL) is an additional activity in the transport system that can strengthen relationships between modes of transport (Selviaridis et al, 2008). According to Leuschner et al 2014, the three main reasons for using the services of logistics companies are (1) service improvements, (2) cost reduction, (3) the desire of service users to focus on the main business unit.…”

“…According to Leuschner et al 2014, the three main reasons for using the services of logistics companies are (1) service improvements, (2) cost reduction, (3) the desire of service users to focus on the main business unit. Selviaridis et al, 2008 states various LSP selection criteria which include financial stability/strength, service quality, and price/cots. The 3PL performance dimensions used in this research are service quality, reliability, flexibility and financial stability.…”

Validating INDSERV (Industrial Service Quality) Scale in Business to Business Context: A Study Based on the Sri Lankan Hotel Sector

“…Moreover, with respect to the items in the INDSERV scale, they cover not only quality aspects, but also a range of other performance indicators of the vendors' service performance, compared to the scales/measures applied previously (Whipple & Frankel 2000, Ogden 2006, Petersen et al 2005, Chan & Chin 2007, Selviaridis et al 2008, Rajabzadeh et al 2008). The items measured using a 7-point Likert scale, ranging from 1 = 'strongly disagree' to 7 = 'strongly agree' in the original study.…”