RELATIONAL GOVERNANCE STRUCTURE TO MODEL LOGISTICS CUSTOMER SERVICE

Using the agency theory as a theoretical foundation; this study investigates the effects of relational governance structure on logistics customer service in association of risk management and reward sharing as intervening variables. Survey data of seventy logistics customer service provider firms was collected from Pakistan and analyzed with partial least squares based structural equation modeling (PLS-SEM). Results revealed that there is a positive relationship between relational governance structure and logistics customer service. Additionally, risk management mediates the relationship of relational governance structure with logistics customer service. However, reward sharing does not intervene the relationship of relational governance structure and logistics customer service. Logistics customer service provider firms need to consider risk factor. This study fills a gap in our understanding of the effects of relational governance structure on logistics customer service in association of risk management and reward sharing.&nbsp

The significance of 'relationship management' as a driver of retention of clients in third party logistics (3PL) : a case study in New Zealand : a thesis presented in partial fulfillment of the requirements for the degree of Master of Logistics and Supply Chain Management at Massey University, Albany, New Zealand

The principal objective of this research was to explore the trend and the role relationship management plays in keeping the Third Party Logistics (3PL) outsourcing businesses together. This research also aimed at highlighting the underlying factors in the business relationships among parties involved in Third Party Logistics (3PL) business, specifically in the New Zealand logistics industry. A literature review was conducted on a significant number of related articles to justify the research objective. This multi-case study has eight participant companies who were selected as representatives of the industry; a majority of them either market leaders or have a significant role in their business category. The eight case participants were classified into two groups: logistics service provider and logistics clients. Due to their unique operational and logistics activities, some participants fell in both categories. In-depth, face-to-face interviews were conducted using semi-structured questionnaires with open-ended questions to tap into the vast industry knowledge and logistics expertise of the participants. Given the infrastructure of the Australasian logistics outsourcing industry, the result of this multi-case study has supported the results, finding, and theories of the previous researchers and academics that relationship management is the key to retaining a loyal customer base and a successful business arrangement between 3PL service providers and their clients

Investigating brand equity of third-party service providers

Purpose: This research applies theory and techniques from the services and marketing literature to a supply chain context consisting of a shipper or seller, a customer or buyer, and a third-party logistics service provider (3PL) to investigate corporate brand equity resulting from service quality, customer satisfaction and customer loyalty towards the 3PL. Design/methodology/approach: A conceptual model was developed from the literature and tested with Finnish industrial firms using an online survey. Data were analysed using structural equation modelling to examine relationships among the four constructs. Findings: Hypothesised relationships among the four constructs in the conceptual model were supported however the relationship between loyalty and corporate brand equity was weak. Research limitations/implications: This investigatory research is based on a one country sample making transferability and generalisability to other countries difficult. Practical implications: The findings of this research should enable 3PL managers to determine service offerings that are most important to either shippers or customers, develop a service package using such offerings to satisfy needs, and thus build loyalty and corporate brand equity among both parties. Originality/value: This paper adds to our knowledge of these constructs in a supply chain context, particularly for 3PLs, and provides an interdisciplinary approach to research in the supply chain domain

Competitive Positioning in International Logistics: Identifying a System of Attributes Through Neural Networks and Decision Trees

Firms involved in international logistics must develop a system of service attributes that give them a way to be profitable and to satisfy customers’ needs at the same time. How customers trade-off these various attributes in forming satisfaction with competing international logistics providers has not been explored well in the literature. This study explores the ocean freight shipping sector to identify the system of attributes that maximizes customers’ satisfaction. Data were collected from shipping managers in Singapore using personal interviews to identify the chief concerns in choosing and evaluating ocean freight services. The data were then examined using neural networks and decision trees, among other approaches to identify the system of attributes that is connected with customer satisfaction. The results illustrate the power of these methods in understanding how industrial customers with global operations process attributes to derive satisfaction. Implications are discussed

Logistics outsourcing and 3PL selection: A Case study in an automotive supply chain

Outsourcing logistics functions to third-party logistics (3PL) providers has been a source of competitive advantage for most companies. Companies cite greater flexibility, operational efficiency, improved customer service levels, and a better focus on their core businesses as part of the advantages of engaging the services of 3PL providers. There are few complete and structured methodologies for selecting a 3PL provider. This paper discusses how one such methodology, namely the Analytic Hierarchy Process (AHP), is used in an automotive supply chain for export parts to redesign the logistics operations and to select a global logistics service provider

Sustainable supply chain management needs sustainable logistics services. The strategic role played by logistics service providers

Purpose – The purpose of this research is to examine the concept of sustainable service co-creation in triadic business relationships in logistics and supply chain management. More companies seek to develop sustainable solutions that would not be sustainable exclusively for themselves but for the supply chain they belong to. In doing that – especially when dealing with services – they may need the external support from logistics service providers (LSPs). This paper aims to explore the innovative initiatives undertaken by LSPs in triadic relationship management with their customers and suppliers while co-creating sustainable services along the supply chain. Design/methodology/approach – To investigate the research question, a systematic literature review and empirical exploratory investigation through case study will be conducted adopting the qualitative methodology, to explore trends and evolving paradigms. Findings – A literature review conducted in this paper enriches existing literature through an integration of sustainability in a viable system approach and logistics service provision, in particular, it investigates the ways in which sustainability is achieved. It is assumed that the triadic relationship among an LSP and its customers and suppliers requires significant modifications in collaboration and an innovative approach in operating procedures. Research limitations/implications – This paper is an exploratory study and limited in its scope to an example of a relationship that focuses mainly on three actors: the supplier, the LSP and the customer. However, it could be extended in terms of numbers of case studies investigated. Practical implications – The implications arising from the literature and the empirical research offer a range of current sustainable practices in the services sector. This could be a starting point for other research and company activities. Originality/value – There is little research that addresses the issue of sustainability and logistics service providers simultaneously, hence the present paper is meant to fill the gap by providing a foundation which actors of different supply chains could use as a benchmark. This study gives evidence of how logistics services may contribute to sustainable development. Key words – sustainable supply chain management, logistics service providers, viable system approach, co-creation, business relationship managemen

Determinants of the outcomes of services outsourcing: an empirical study of transport services.

The purpose of our study is to examine whether the design and management of the interfaces and interaction processes between customer and provider in services outsourcing are determinants of the results achieved by the outsourcing company. Following the conceptual framework initiated in the study by Wynstra et al. [11], this study focuses on transport services and hypothesized relationships are tested using the Partial Least Squares (PLS) statistical technique. The primary data used was obtained from a survey in three different countries (Germany, Japan and Spain), and from manufacturing companies in the electronics, automotive and machinery sectors. Among other things, the results show that both the structural dimensions of interaction (the organization's resources that it must commit) and the process dimensions of interaction (that consider the dynamic nature of the relationships), are important for obtaining adequate performance from transport services outsourcing.Spanish National Program of Industrial Design and Production DPI 2009 11148PAIDI Excellence Projects P08-SEJ0384

A Study On Influencing Factors And Performance Of Logistics Outsourcing Practices Among Electrical And Electronics Firms In Malaysia

Penyumberluaran aktiviti logistik telah menjadi strategi popular bagi kebanyakan organisasi dalam memburu kecemerlangan operasi di era persaingan sengit pasaran global. Logistics outsourcing has been growing as a popular strategy for many organizations in pursuit of operational excellence despite the fierce competitive market globally

Value-driven Security Agreements in Extended Enterprises

Today organizations are highly interconnected in business networks called extended enterprises. This is mostly facilitated by outsourcing and by new economic models based on pay-as-you-go billing; all supported by IT-as-a-service. Although outsourcing has been around for some time, what is now new is the fact that organizations are increasingly outsourcing critical business processes, engaging on complex service bundles, and moving infrastructure and their management to the custody of third parties. Although this gives competitive advantage by reducing cost and increasing flexibility, it increases security risks by eroding security perimeters that used to separate insiders with security privileges from outsiders without security privileges. The classical security distinction between insiders and outsiders is supplemented with a third category of threat agents, namely external insiders, who are not subject to the internal control of an organization but yet have some access privileges to its resources that normal outsiders do not have. Protection against external insiders requires security agreements between organizations in an extended enterprise. Currently, there is no practical method that allows security officers to specify such requirements. In this paper we provide a method for modeling an extended enterprise architecture, identifying external insider roles, and for specifying security requirements that mitigate security threats posed by these roles. We illustrate our method with a realistic example