Inter Organizational Relationships Performance in Third Party Logistics: conceptual framework and case study

Supplier relationship management is an important challenge for shippers in logistics outsourcing. This paper attempts to understand the factors which affect inter organizational relationships performance in third party logistics and proposes a conceptual framework specifically for inter organizational relationship performance in third party logistics. We also draw a set of propositions from published research and exploratory inter-views with practitioners to explain inter organizational relationships performance in third party logistic net-works. Five main dimensions of inter organizational relationships are identified which affect performance in third party logistics: commitment, supplier adaptation, conflict resolution, partner fit and communication. In order to assess the validity of our conceptual model we include a case study in this paper. The case study is based on Shell Chemicals Europe and their portfolio of seventeen third party logistic service suppliers

Service provider boundaries in competitive markets: the case of the logistics industry

The study empirically investigates service provider firms’ attempts to move to higher value added market segments in competitive and fragmented markets; using logistics services as a context. Novelty is added by taking the provider not the customer or outsourcing actor perspective, common to current third-party logistics perspectives. Data were collected in the form of semi-structured interviews with management at various provider firms. The interview guide was based on theoretical constructs regarding tangible and intangible capabilities (RBV) as well as constructs related to governance and integration (TCE). Unlike customer focused studies, this study is able to identify what distinguishes the rare successful boundary crossing attempts that lead to a more profitable market position. The key finding which contradicts studies based on the customer/outsourcing actor perspective, is that a switch from a highly commoditized market position to a higher margin position is only possible, if relationships and network capabilities are leveraged, regardless of the assets and physical resources available to the firm. The presentation of service boundaries as both dynamic and fluid and the use of RBV are contributions, building on existing theory, illustrating why providers of commoditized services cannot escape from low-margin, competitive market positions simply by acquiring tangible assets

Measuring Service individuality in Third Party

Purpose - 3PL services are more or less individually designed bundles of logistics operations that are provided on the basis of a long term relationship between logistics service providers and their clients mostly in industry and retail. The appropriate degree of the individuality is however subject to a trade-off between the creation of complexity to reflect individual customer needs and the realization of synergy effects by the replication of common elements and the multiplied utilization of relevant resources for different customers. The appropriate mix of the more individual elements and the more common elements is seen as a major success factor for the design of the service propositions. Design/methodology/approach - The explorative paper is combining major elements and frameworks from different interdisciplinary research streams, such as modularity and service design and adapts them to the subject of third party logistics. Findings - As a major result the paper is providing a conceptual model for the systematic and formal description of modularity and individuality in the configuration of third party logistics services. The model thus serves as a tool to classify and categorize degrees of complexity that are embedded in TPL settings. Research limitations/implications (if applicable) - As our research is still in the exploratory stage, we do not offer empirical findings. Practical implications - Our findings can help firms to better understand the critical factors in their current TPL service offerings and how to replicate or (re)design the new services offered. Depending on the level of complexity of the TPL services, firms need also to consider the implications of the replication and/or (re)design on the configuration of the supply chain, especially downstream. Originality/value - The paper crosses disciplinary boundaries and combines relevant research streams to provide a sound foundation for the categorization and classification of TPL services and for new service design/development (NSD) and supply chain configuration

Reverse logistics and 3PL in the Czech Republic

The paper is focused on presenting the results of survey investigating the utilization of services of the so called 3PL or in other words outsourcing of reverse logistics activities in the context of their strategic versus operative or ad hoc management of RL and in relation to various benefits seeking and gaining within the frame of RL management. The exploratory analysis tries to answer the basic research question whether companies strategically managing reverse flows use services of 3PL more often compared to companies with ad hoc or operative management and what is the role of costs versus benefits in the context of outsourcing of RL activities. The survey was realized among 150 Czech small, middle and big companies from several industries and the size and type of industry are two other contextual factors related to outsourcing decisions. Results show statistically significant relationship between character of planning hierarchy and number of activities performed by 3PL, where companies that plan RF strategically, employ 3PL more often. The survey also shows that companies which outsource more RL activities perceive less financial benefits than nonfinancial benefits. Significant dependence was detected between the size of company and number of both benefits perceived with RF management. Very important result shows that activities which are outsourced distinctly more by the companies planning RL strategically belong to the activities creating higher value for companies.The paper is focused on presenting the results of survey investigating the utilization of services of the so called 3PL or in other words outsourcing of reverse logistics activities in the context of their strategic versus operative or ad hoc management of RL and in relation to various benefits seeking and gaining within the frame of RL management. The exploratory analysis tries to answer the basic research question whether companies strategically managing reverse flows use services of 3PL more often compared to companies with ad hoc or operative management and what is the role of costs versus benefits in the context of outsourcing of RL activities. The survey was realized among 150 Czech small, middle and big companies from several industries and the size and type of industry are two other contextual factors related to outsourcing decisions. Results show statistically significant relationship between character of planning hierarchy and number of activities performed by 3PL, where companies that plan RF strategically, employ 3PL more often. The survey also shows that companies which outsource more RL activities perceive less financial benefits than nonfinancial benefits. Significant dependence was detected between the size of company and number of both benefits perceived with RF management. Very important result shows that activities which are outsourced distinctly more by the companies planning RL strategically belong to the activities creating higher value for companies

Logistics service providers and Industry 4.0: A systematic literature review

Background: Industry 4.0 is one of the topics related to manufacturing, supply chain and logistics that has received great interest from the academic community, organizations and governments in the last decade. Problem statement: Several published articles discuss and seek to conceptualize what the fourth industrial revolution is, but no research relates industry 4.0 in the context of logistics service providers (LSPs) in a clear and structured way. Objectives: This study aims to fill this research gap, proposing a conceptual framework and addressing the challenges, barriers and organizational dimensions that need adaptation to insert LSPs in the new Industry 4.0 environment. Methods: This theoretical and conceptual study uses the Systematic Literature Review (SLR) as a research method to understand the Industry 4.0 phenomenon in the context of LSPs. Contributions: The relevant constructs identified in this research will help professionals and organizations that provide logistics services to develop strategies and encourage new research in the 15 field of Industry 4.0 from the perspective of LSPs. Results: In addition, this research identified and generally consolidated six dimensions, as a result of this innovative study a conceptual framework is presented

Supply Chain Management in the Logistics Industry

The goal of this Major Qualifying Project was to analyze the performance of warehouseoperations relating to the client LG Electronics at AGUNSA\u27s Distribution Center inSantiago. By gathering information from REPORT warehouse documents, meetings withthe various warehouse departments, observational analysis of the processes, and time-datacollection of these operations, I was able to assemble a general overview of LG operationsand identify the weaknesses and wastes within these. Through the analysis of incomingshipment timed data, I was able to present the current performance of Receptionoperations and make recommendations to diminish costs incurred within this process,which could potentially increase capacity of warehouse operations by 20%