Third Party Logistics Services: A Comparison of Experienced American and European Manufacturers

Abstract

Provides a comparison of third‐party logistics services utilization between large manufacturing firms in the USA and Western Europe. All these firms had been utilizing third‐party providers for at least three years, although many had been doing so for five years or longer. The group of Western European firms is more committed to outsourcing, as evidenced by the substantially greater percentage of their total corporate logistics budget allocated to third‐party firms. The strategic decision to utilize third‐party companies is more often made at the corporate level and includes input more frequently from other functional areas in Western European firms. However, many of the findings indicate that the issues faced by both groups of executives are very similar, such as their reservations to outsourcing and their experiences with implementation. Almost all the executives indicated that they are satisfied with the performance of third‐party providers, and would, at least moderately, increase their use of such firms.

Managing in-country transportation risks in humanitarian supply chains by logistics service providers: Insights from the 2015 Nepal earthquake

“…logistics service providers, can improve the management of underlying risks in SCs. The term LSP refers to a company provides logistics services for other companies [18]. Skjoett-Larsen, Halldorsson, Andersson, Dreyer, Virum and Ojala [19] define three LSP categories with respect to the services they provide: physical logistics activities, organization and responsibility for implementation, and third-party logistics providers (3PLs).…”

“…Having the overall risk scores, we could establish four risk categories [47], as depicted by different colors in Figure 4: low (1-5); moderate (6-11); high (12)(13)(14)(15)(16)(17)(18)(19); extreme (20)(21)(22)(23)(24)(25). For instance, if a risk has the time impact between two and five days, and its probability can be estimated by moderate, its score becomes twelve and it belongs to the high-level risks category.…”

The Role of Logistics Service Providers in Supply Chain Performance Management: A comprehensive Literature Review

“…This expansion in services lends a hand to a third party in becoming more responsive towards particular customer demands along with inclusion of "add-on" services to the current products and services line (Pine 1993,;Gilmore and Pin, 1997). In a semi annul survey of third party logistics practices Lieb et al (1993) and Lieb and Randall (1996) stated that service offered by third party have incorporated services in their range of service portfolio are final congregation, then packaging and management of inventory. Establishing Cross docking facilities help logistics services providers to erase excess of unwanted inventories and higher customer service quality level can be achieved by redesigned distribution network (Berglund et al, 1999).…”

Key Factors in Selecting an International Freight Forwarding Company

“…Studies identifying the key factors which are important for IFF clients in freight service selection, international or otherwise, vary since there are many different types of carriers, including: customhouse brokers (CHBs); non-vessel operating carriers (NVOCCs); and export management companies which characterize themselves as third-party logistics providers (TPLs), i.e., external companies performing functions traditionally conducted in-house [5]. In the face of the proliferation of different types of carriers, previous distinctions seem increasingly blurred the more that added responsibilities are taken on [2].…”