3PL factories or lernstatts? Value‐creation models for 3PL service providers

Abstract

PurposeThe purpose of this paper is to identify and systematically discuss generic forms of contract logistics services and their distinct underlying approaches for fulfilling their respective value propositions. A general frame of reference is developed that addresses the value proposition, as well as the value creation architecture that leads to generic business model configurations for contract logistics services. The framework is built upon the basic notions of service theory, competence research and the resource based view.Design/methodology/approachThe paper combines service theory with work of organizational theory and develops an analytical framework based on conceptual considerations. First empirical results are additionally used to support and illustrate the key outcomes.FindingsCombining the dimensions of integration power and intangible knowledge creation, the authors are able to specify generic types of contract logistics services. Thereby the authors deducted for every type the distinct requirements for service fulfilment and present this in a specific frame of reference.Research limitations/implicationsThe illustrated empirical results are still limited due to a limited sample size for the interviews. Additional empirical work on the whole third party logistics (3PL) market is suggested.Practical implicationsThe paper provides generic types of 3PL services and a characterization of properties and architectures of respective business models. Combined with first empirical results, the paper's results offer insights for practitioners to rethink their value propositions and potentially redesign their service architectures.Originality/valueThe paper delivers a set of distinct business models for 3PL services reflecting the customer's, as well as the service provider's point of view. It addresses specific aspects of the generation/production of required services that are so far mostly neglected.

Value creation models in the 3PL industry: what 3PL providers do to cope with shipper requirements

“…The value proposition within a 3PL provider's business model essentially involves the competitive advantages that a 3PL provider can offer and, from the shippers' perspective, what they expect from a logistics outsourcing relationship (Prockl et al, 2012). Well-established literature already exists on the value propositions that can be fulfilled through the 3PL providers' business models.…”

Third-Party Logistics Providers in the Digital Age: Towards a New Competitive Arena?

“…The portfolio is based on the 3PL clusterings proposed by Alfredsson and Hertz [56], Berglund et al [52] and Delfmann et al [13]. The portfolio also refers to the two generic 3PL business models-3PL lernstatts and 3PL factories-identified by Prockl et al [57] and includes the service internationalization strategies of 3PL described by Lemoine and Dagnaes [58]. The generic 3PL business models can be described as follows:…”

Current Advancements of and Future Developments for Fourth Party Logistics in a Digital Future

“…Nevertheless, based on the frequency to which the actors were mentioned, indications can be made on the most well known actors. Notably, all 4PLPs labeled (c1) also offer 3PL and freight forwarding services and this again is in line with pre-existent relationships in a 3PL business area which may facilitate offering additional 4PL services, too [8,10,21,[56][57][58][59]. Furthermore, it can be assumed that (c3) are operating in smaller, particularly specialized areas that may not be exposed to a great change.…”