Advertisement

Use of Third Party Logistics Services: An Asia-Pacific Perspective

  • Amrik S. Sohal
  • Shams Rahman
Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 181)

Abstract

We compare trends in the use of 3PLs (Third Party Logistics Providers) in the Asia-Pacific region, mostly among four countries: Australia, India, Malaysia, Singapore. These comparisons are based upon published results and surveys by us and by other researchers. The enhanced use of outsourcing is related to the growth of Manufacturing and Logistics in the Asia-Pacific. Another important factor is the skills required of Logistics managers. Those necessary competencies are detailed, with particular emphasis on China and Australia.

Keywords

Supply Chain Supply Chain Manager Logistics Service Logistics Manager Electronic Data Interchange 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Arroyo P, Gaytan J, de Boer L (2006) A survey of third party logistics in Mexico and a comparison with reports on Europe and USA. Int J Oper Prod Manage 26(6):639–667CrossRefGoogle Scholar
  2. Bagchi PK, Virum H (1996) European logistics alliances: a management model. Int J Logistics Manage 7(1):93–108CrossRefGoogle Scholar
  3. Bardi EJ, Tracey M (1991) Transportation outsourcing: a survey of US practices. Int J Phys Distrib Logistics Manage 21(3):15–21CrossRefGoogle Scholar
  4. Beamon BM (1999) Measuring supply chain performance. Int J Oper Prod Manage 19(3):275–292CrossRefGoogle Scholar
  5. Bhatnagar R, Sohal AS, Millen R (1999) Third party logistics services: a Singapore perspective. Int J Phys Distrib Logistics Manage 29(9):569–587CrossRefGoogle Scholar
  6. Carter JR (2005) Outsourcing strategically for sustainable competitive advantage. Research monograph, Centre for Advanced Purchasing Studies, Tempe, AZ.Google Scholar
  7. Carter JR, Maltz A, Yan T (2008) How procurement mangers view low cost countries and geographies—a perceptual mapping approach. Int J Phys Distrib Logistics Manage 38(3):224–243CrossRefGoogle Scholar
  8. Chae B, Yen HR, Sheu C (2005) Information technology and supply chain collaboration: moderating effects of existing relationships between partners. IEEE Trans Eng Manage 52(4):440–448CrossRefGoogle Scholar
  9. Chan FTS (2003) Performance measurement in a supply chain. Int J Adv Manuf Technol 21:534–548CrossRefGoogle Scholar
  10. Chen F, Lee C-Y (2013) Logistics in China. In: Bookbinder JH (ed) Global logistics: transportation in international supply chains. Springer, New YorkGoogle Scholar
  11. China’s Logistics Report (2005) Logistics Information Centre of China and China Federation of Logistics and Purchasing, vol Jan–JuneGoogle Scholar
  12. Dawson A (2002) Supply chain technology. Work Study 51(4):191–196CrossRefGoogle Scholar
  13. Fantasia JJ (1993) Are you a candidate for third party logistics? Transp Distrib 34:30 (Jan)Google Scholar
  14. Fuller JB, O’Connor J, Rawlinson R (1993) Tailored logistics: the next advantage. Harvard Bus Rev 71(3):87–98Google Scholar
  15. Gammelgaard B, Larson P (2001) Logistics skills and competencies for supply chain management. J Bus Logistics 22(2):27–50CrossRefGoogle Scholar
  16. Giunipero LC, Pearcy DH (2000) World-class purchasing skills: an empirical investigation. J Supply Chain Manage 36(4):4–15CrossRefGoogle Scholar
  17. Giunipero LC, Handfield RB, Eltantawy R (2006) Supply management’s evolution: key skill sets for the supply manager of the future. Int J Oper Prod Manage 26(7):822–844CrossRefGoogle Scholar
  18. Gooley TB (1997) The state of third party logistics in Europe. Logistics Manage 36(1):80A–81AGoogle Scholar
  19. Green FB (2001) Managing the unmanageable: integrating the supply chain with new developments in software. Supply Chain Manage Int J 6(5):202–211CrossRefGoogle Scholar
  20. Gunasekaran A, Patel C, Tirtiroglu E (2001) Performance measures and metrics in a supply chain environment. Int J Oper Prod Manage 21(1/2):71–87CrossRefGoogle Scholar
  21. Higginson JK, Bookbinder JH (2008) Chapter 2: Warehouse management systems and product flow: reconciling the two. In: Lahmar M (ed) Facility logistics: approaches and solutions to next generation challenges. Auerbach Publications, New York, pp 17–38Google Scholar
  22. Hill CA, Scudder GD (2002) The use of electronic data interchange for supply chain coordination in the food industry. J Oper Manage 20:375–387CrossRefGoogle Scholar
  23. Hoetker G (2005) How much you know versus how well I know you: selecting a supplier for a technically innovative component. Strateg Manag J 26(1):75–96CrossRefGoogle Scholar
  24. Holldorsson A, Skjott-Larsen T (2004) Developing logistics competencies through third party logistics relationships. Int J Oper Prod Manage 24(2):192–206CrossRefGoogle Scholar
  25. Jacobides MG, Winter SG (2005) The co-evolution of capabilities and transaction costs: explaining the institutional structure of production. Strateg Manag J 26(5):395–413CrossRefGoogle Scholar
  26. Jacobs FR, Berry WL, Whybark DC, Vollmann TE (2011) Chapter 1A: Enterprise resource planning (ERP). In: Manufacturing planning & control for supply chain management, 6th edn. McGraw-Hill Irwin, New YorkGoogle Scholar
  27. Jones Lang Lasalle, Ltd (2007) China logistics: the geography of opportunity. World winning cities series: emerging city winners. China Supply Chain Council, ShanghaiGoogle Scholar
  28. Knemeyer AM, Murphy PR (2005) Is the glass half full or half empty? An examination of user and provider perspectives towards third-party logistics relationships. Int J Phys Distrib Logistics Manage 35(10):708–727CrossRefGoogle Scholar
  29. Lambert DM, Pohlen TL (2001) Supply chain metrics. Int J Logistics Manage 12(1):1–19CrossRefGoogle Scholar
  30. Larson PD, Gammelgaard B (2001) Logistics in Denmark: a survey of the industry. Int J Logistics: Res Appl 4(2):191–206Google Scholar
  31. Lieb RC (1992) The use of third party logistics services by large American manufacturers. J Bus Logistics 13(2):29–42Google Scholar
  32. Lieb R, Millen R, van Wassenhove L (1993) Third-party logistics services: a comparison of experienced American and European manufacturers. Int J Phys Distrib Logistics Manage 23(6):35–44 CrossRefGoogle Scholar
  33. Lynch CF (2004) Why outsource? Supply Chain Manage Rev 8(7):44–49Google Scholar
  34. Maltz AB, Carter JR, Villalobos JR (2011) Procurement from developing countries. In: Bookbinder JH (ed) Global logistics: transportation in international supply chains. Springer, New YorkGoogle Scholar
  35. Mangan J, Christopher M (2005) Management development and the supply chain manager of the future. Int J Logistics Manage 16(2):178–191CrossRefGoogle Scholar
  36. Morgan C (2007) Supply network performance measurement: future challenges? Int J Logistics Manage 18(2):255–273CrossRefGoogle Scholar
  37. Murphy P, Poist R (1994) Educational strategies for succeeding in logistics: a comparative analysis. Transp J 33(3):36–48Google Scholar
  38. Murphy P, Poist R (1998) Skill requirements of senior-level logisticians: practitioner perspectives. Int J Phys Distrib Logistics Manage 28(4):284–301CrossRefGoogle Scholar
  39. Rabinovich E, Windle R, Dresner ME, Corsi T (1999) Outsourcing of integrated logistics functions: an examination of industry practices. Int J Phys Distrib Logistics Manage 29(6):353–373CrossRefGoogle Scholar
  40. Rahman S (2009) Outsourcing third-party logistics services by Australian firms. Int J Logistics Supply Chain Manage 1(1):41–49Google Scholar
  41. Rahman S, Yang L (2009) Skills requirements for logistics managers in China. IIBM Manage Rev 21(2):140–148Google Scholar
  42. Richardson HL (1990) Explore outsourcing. Transp Distrib 31:17–21 (July)Google Scholar
  43. Richardson HL (1992) Outsourcing: the power worksource. Transp Distrib 33:22–24 (July)Google Scholar
  44. Sahay BS, Mohan R (2006) 3PL practices: an Indian perspective. Int J Phys Distrib Logistics Manage 36(9):666–689CrossRefGoogle Scholar
  45. Sheffi Y (1990) Third party logistics: present and future prospects. J Bus Logistics 11(2):27–39Google Scholar
  46. Shepherd C, Gunter H (2006) Measuring supply chain performance: current research and future directions. Int J Prod Perform Manage 55(3/4):242–258CrossRefGoogle Scholar
  47. Sink HL, Langley CJJ, Gibson BJ (1996) Buyer observations of the US third party logistics market. Int J Phys Distrib Logistics Manage 26(3):38–46CrossRefGoogle Scholar
  48. Skjott-Larsen T (2000) Third-party logistics—from an interorganisational point of view. Int J Phys Distrib Logistics Manage 30(2):112–127CrossRefGoogle Scholar
  49. Sohail MS, Sohal AS (2003) The use of third party logistics services: a Malaysian perspective. Technovation 23:401–408CrossRefGoogle Scholar
  50. Sohal AS, Millen R, Moss S (2002) A comparison of the use of third-party logistics services by Australian firms between 1995 and 1999. Int J Phys Distrib Logistics Manage 32(1):59–68CrossRefGoogle Scholar
  51. Sparks L, Wagner BA (2003) Retail exchanges: a research agenda. Supply Chain Manage Int J 8(3):201–208CrossRefGoogle Scholar
  52. Stephens S (2001) Supply chain operations reference model version 5.0: a new tool to improve supply chain efficiency and achieve best practice. Inf Syst Frontiers 3(4):471–476CrossRefGoogle Scholar
  53. Sundarraj RP, Kumari K (2013) Electronic procurement systems in India: importance and impact on supply chain operations. In: Bookbinder JH (ed) Global logistics: transportation in international supply chains. Springer, New YorkGoogle Scholar
  54. Trunick PA (2003) Logistics links are critical in China. Transp Distrib 44(8):50–53Google Scholar
  55. van Laarhoven P, Berglund M, Peters M (2000) Third party logistics in Europe—five years later. Int J Phys Distrib Logistics Manage 30(5):425–442Google Scholar
  56. Walker G, Poppo L (1991) Profit centres, single source suppliers and transaction costs. Adm Sci Q 36:66–87CrossRefGoogle Scholar
  57. Williamson OE (1979) Transaction cost economics: the governance of contractual relations. J Law Econ 22:233–261CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.Department of ManagementMonash UniversityMelbourneAustralia
  2. 2.School of Business IT and LogisticsRMIT UniversityMelbourneAustralia

Personalised recommendations